summer project
TRANSCRIPT
A
PROJECT REPORT
ON
“BRINGING THE WORLD CLOSER THROUGH INTERNATIONAL
TRADE”
SUBMITTEDBY
ZION KIMMBA-II (MARKETING + OPERATIONS)
UNDER THE GUIDANCE OF
Prof PathankarVISITING FACULTY
(PUMBA)
IN PARTIAL FULFILLMENT OF THEREQUIREMENTS FOR THE AWARD OF DEGREEOF MASTERS IN BUSINESS ADMINISTRATION
DEPARTMENT OF MANAGEMENT SCIENCESUNIVERSITY OF PUNE
(PUMBA)
1
(2006-08)
CERTIFICATE
This is to certify that the project entitled “BRINGING THE WORLD
CLOSER THROUGH INTERNATIONAL TRADE” is a bonafide
project work carried out by Mr.Zion Kim, student of Department Of
Management Sciences, Pune University,(PUMBA), under my guidance
and direction, in partial fulfillment of the requirement of the MBA
degree course.
Prof. Pathankar Prof. D.V Sangvikar(PROJECT GUIDE) (H.O.D D.M.S. PUNE)
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A CKNOWLEDGEMENT
I express my sincere thanks to Shin Sung
Chemical Co. Ltd. And Korean Trade (KOTRA), Mumbai for giving me an opportunity to work with them through this summer project.
Gracious help from various sources has contributed tremendously to the completion of this project work. I take this opportunity to express my profound sense of gratitude to Mr. Yeol Woo Choi (President), Mr. Choi Jae Kwang (International Business) and Mr. Dong Wook Kim (KOTRA, Mumbai) for their invaluable guidance, constant encouragement and practical suggestions based on the experience to focus my efforts to which this work has come to the presentable form.
I am also thankful to Prof. D.V Sangvikar (HOD, PUMBA) and my internal guide Prof. Pathankar who have helped me whenever required, and gave me support in every possible form.
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Zion KimMBA- Dual (Marketing & Operations)
Department Of Management SciencesUniversity Of Pune
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TABLE OF CONTENTS
Chapter 1 …………….………………………………………………….. 8
About the Company
Chapter 2 …………………………………………………………….…..10
Job Description
Chapter 3…………………………………………………………………11
Business Process
3.1 Price List………………………………………………………….11
3.2 Email communication……………………………………….….11
3.3 Pro Forma Invoice……………………………………………….12
3.3.1 Note (CFR, FOB, CIF)…………………………………….14
3.4 L/C, P/L, C/I………………………………………………….……17
3.4.1 Note (Credit Report)…………………………………..……16
3.4.2 L/C………………………………………………………..…..24
3.4.3 L/C……………………………………………………………25
3.4.4 L/C……………………………………………………………26
3.4.5 L/C………………………………………………...………….27
3.4.6 C/I………………………………………………….…………33
3.4.7 P/L……………………………………………………..……..36
3.5 B/L…………………………………………………………...……..38
3.5.1 Seal No……………………………………………………...40
3.6 Payment…………………………………………………….……..44
3.6.1 Summary of Business Process………………………..44
3.6.2 Summary of Observations Made……….……………..46
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3.6.3 Summary of Conclusions from Observations ……..51
3.6.4 Summary of Recommendations ……………………..53
Chapter 4 .…………………………………………………….…………46
Korean Trade Centers
4.1 KOTRA…………………………………………………….………55
4.2 KITA…………………………………………………..……………58
Chapter 5 ………………………………………………………………..60
Conclusion
Chapter 6 …………………………………………………………..……62
Product Lists: Surfactants
Chapter 7…………………………………………………………..……..64
Chemical Auxiliaries
Glossary…………………………………………………………….……96
Figures and Tables……………………………………………………..97
Bibliography……………………………………………………………..98
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Chapter 1
Introduction
About the company
Shin Sung Chemicals was established in 1989 in South Korea. Since
then, it has grown up to be a well-known company in Korea as a
developing, manufacturing and trading company of precision
synthetic chemicals for textile industries dealing with a wide range of
products in nylon, cotton, leather, acryl, and dye-stuff.
In 1997, Shin Sung Chemicals became a joint stock holding company
and changed its name to Shin Sung Chemical Co. Ltd. It consists of
highly qualified and experienced professionals who are dedicated to
providing high quality for customers. With qualified and experienced
experts, Shin Sung is able to design the most reliable and cost
efficient chemicals to suit customer’s requirements.
To fully satisfy our customers’ needs, Shin Sung continuously strive
to improve its products’ quality and value.
The company’s mission is to supply the highest quality products and
services to its customers. In order to fulfill this mission, all employees
work professionally, happily and efficiently together.
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Company Profile
Company Name SHIN SUNG CHEMICAL CO. LTD.
Major Business Surfactants and dye-stuff
President Yeol Woo Choi
Address 1355-12 JUNG WANG-DONG, SI HEUNG CITY,
GYEONG GI –DO, KOREA
Telephone +82-31-498-2251/2/3
Annual Turnover $1 million
Number of
Employees
20
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Chapter 2
Job Description
My job at Shin Sung Chemical Co. Ltd. was to oversee the operation
of international business, mainly with the export division. As such, I
was responsible for precise communication with foreign buyers
through emails, meetings, exhibitions and visits.
I was given the task of receiving and sending the enquiries, framing
documents such as pro forma invoices, commercial invoices, and
confirming orders and operations through constant communications.
The company has clients from different parts of the world such as
China, Vietnam, Sri Lanka, Bangladesh.
Because of my experience with foreign business cultures and the
knowledge of English, I could utilize my full potential and was happy
to be resourceful to the company.
During various exhibition visits such as Co-Ex exhibition(South
Korea) and Chem Spec, not only was my knowledge towards
international trade increased but I was able to introduce new buyers
to my company.
The summers at Shin Sung Chemical Co. Ltd. gave me an insight of
different processes involved for international business, how they are
actually implemented and know-hows of a successful trading
company.
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Chapter 3
Business Process
The competition of chemical industry around the world is fierce. It is
very sensitive to prices and quality. As such, I am bound by mutual
agreement of non-disclosure so as to protect the integrity and
confidential nature of details of international business done by Shin
Sung Chemical Co. Ltd.
I cannot disclose the details of international trade carried out during
my internship but I am happy to share a business transaction which
took place in the month of September with a buyer from Bangladesh.
The international trade process of Shin Sung Chemical Co. Ltd.
during my stay was all done in the similar manner.
3.1 – Business Process
Inquiry email was sent by buyer (EPYLLION KNITEX LTD.) from
Bangladesh and received by Shin Sung Chemical Co. Ltd. The
inquiry was about the product SODA-PS. (refer page 37 for product
details)
3.2 – Business Process
The price list of SODA-PS required by the buyer was sent via email.
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3.3 – Business Process
PI (Pro forma Invoice) was prepared as shown in the figure 1.
In foreign trade transactions, a pro forma invoice is a document that
states a commitment from the seller to sell goods to the buyer at
specified prices and terms. It is used to declare the value of the trade.
It is not a true invoice, because it is not used to record accounts
receivable for the seller and accounts payable for the buyer.
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Fig.1: Pro forma Invoice
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What to check for in PI?
Pro forma Invoice Number
Pro forma Invoice Date
Payment: type of L/C
Price per quantity
Total amount
Type of shipping(CFR/CIF/FOB)
3.3.1 Note :-
During my internship, I have noted that the price of products differed/
were adjusted according to the type of shipping used. In the above
transaction, the price per kg of SODA-PS was increased due to CFR
charges to Chittagong, Bangladesh.
Usually, CIF was given to the buyers located in China(Shanghai) due
to the close proximity(1 to 2 days).
FOB and CFR were given to the buyers whose proximity from our
ports was far (usually above 15 days).
Shin Hwan Bank of South Korea handles most of Shin Sung
Chemical Co. Ltd. ‘s overseas transactions. It was advised to opt for
FOB and CFR while quoting on the prices of chemicals as the risks
were fairly high.
Cost and Freight (CFR) is an Incoterm. It means that the seller pays
for transportation to the Port of Loading (POL), loading and freight.
The buyer pays for the insurance and transportation of the goods
from the Port of Discharge (POD) to his factory. The passing of risk
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occurs when the goods pass the ship's rail at the port of shipment
which means that this term cannot be used for airfreight or land
transport and also is inappropriate for most containerized sea
shipments - the term CPT is the appropriate one for these.
Cost, Insurance and Freight (CIF) is a common term in a sales
contract that may be encountered in international trading when ocean
transport is used.
When a price is quoted CIF, it means that the selling price includes
the cost of the goods, the freight or transport costs and also the cost
of marine insurance. CIF is an international commerce term
(Incoterm).
CIF is identical in most particulars with Cost and Freight (CFR), and
the same comments apply, including its applicability only to
conventional maritime transport. In addition to the CFR
responsibilities, the seller under CIF must obtain in transferable form
a marine insurance policy to cover the risks of transit with insurers of
repute. The policy must cover the CIF price plus 10 per cent and
where possible be in the currency of the contract. Note that only very
basic cover is required equivalent to the Institute "C" clauses, and
buyers should normally insist on an "all-risk" type of policy such as
that under the Institute "A" clauses. The seller's responsibility for the
goods ends when the goods have been delivered on board the
shipping vessel. In the guidelines for CIF published in Incoterms 2000
the term "carrier" does not appear and it clearly states "the seller
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must deliver the goods on board the vessel at the port of shipment"
which makes CIF the incorrect term to use where the seller wishes
their responsibility to end when they deliver the goods into the hands
of a carrier prior to the goods passing the ship's rail at the port of
loading. In the great majority of transactions the more correct term is
CIP. This term is only appropriate for conventional maritime transport,
not ro/ro or international container movements.
CIF ASWP indicates that the supplier is responsible for insuring on
behalf of the buyer until goods arrive and are unloaded at the port of
destination. The opposite to this is FOB (Free On Board), which
means the buyer is responsible for payment to the seller when the
good is loaded onto the ship at the port of origination. ASWP
indicates Any Safe World Port.
Apart from the above poor English it should be carefully noted that
"CIF ASWP" is NOT an INCOTERM of the International Chamber of
Commerce. "ASWP" (any safe world port) may be added as a
separate article in a Purchase Contract but should not be confused
with an INCOTERM.
FOB, is an abbreviation for Free On Board. The term commonly
used when shipping goods, to indicate who pays loading and
transportation costs, and/or the point at which the responsibility and
ownership of the goods transfers from shipper to buyer.
FOB stands for "Free On Board". Indicating "FOB" means that the
seller pays for transportation of the goods to the port of shipment,
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plus loading costs. The buyer pays freight, insurance, unloading costs
and transportation from the arrival port to the final destination. The
passing of risks occurs when the goods pass the ship's rail at the port
of shipment. Internationally the term specifies the port of loading.
3.4 – Business Process
Once the PI was issued and terms and conditions met, I would
receive a call from the buyer asking for certain documents required
by him to open L/C in his country. Such documents are commercial
invoice, packing list, Confidential Credit Report, Details of Shipments
and bill of lading. This is the most important stage during the
transaction. During the provision of the said information, if an error
like spelling mistakes or number mismatch occurs, then, it would not
only create delay in processing not to mention $50.00 fine per error
but also throughout the transaction it would create such a chaos that
in the end, it would be difficult to receive payments from my end.
Once it so happened that the Branch manager of the Korean Bank
did not “personally” sign on the Credit report of my company. The
document was sent to the Bangladesh Bank where it was promptly
rejected. This caused delay in payment because everyone in Korea
assumed that the L/C would be delivered in a week’s time; but it
never did. When an inquiry was launched, we soon realized the fault
was actually with the bank, and not with us. Different banks follow
different rules to open L/C. And we must adhere to it.
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3.4.1 Note :-
During my stay with the company, the buyer from Bangladesh has
asked us to send a certificate of weight and measurement list. I did
not understand the need for such requirement because the packing
list document contained the exact information which was mentioned
there. (Refer to fig.9 and fig.10)
Fig.2: Credit Report
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Letter of Credit (L/C)
Fig.3: Letter of Credit
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Fig.4: Letter of Credit
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Fig.5: Letter of Credit
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Fig.6: Letter of Credit
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Fig.7: Letter of Credit
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What to check for in a L/C?
Credit Number
The amount
Expiry Date
Issue Date
Type of drafts: AT SIGHT/ USSANCE
Description of goods
Type of documents required
Amendments if any
3.4.2 Note:- (refer to fig.3)
It was very important for me to check the issue and expiry dates
because if the applicant does not pay the bank in time, then, my
company was liable to pay for the interests.
For example, AT SIGHT indicates that the amount MUST be paid by
the applicant within 30 days of issue of L/C. USSANCE indicates that
the period of 120 days are given to the applicant to make the
payment.
If the applicant fails to pay the payment within the stipulated date,
then, my company had to file for the bankruptcy with the Korean bank
as no payment was made against the goods sold. This created a
negative impression with the banks and the company would lose its
credibility with Shin Hwan Bank.
There was a case with my company with one of the companies it was
dealing with. Because of holidays in Bangladesh and the slow, I
mean, really slow document processing power of banks in
Bangladesh, my company had to actually ask for the Grace period to
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extend the expiry date of the L/C. Because of the holidays in
Bangladesh, and weekends being an off-day for Korean banks, the
company in Bangladesh could not make the payment on time.
The following conversation took place then:
Korean company: Did you make the payment?
Foreign company: Yes, we did. I made the payment to the bank 4
days ago.
Korean company: My bank tells me that the money hasn’t arrived
yet.
Foreign company: No, no, that’s not possible.
Korean company: The expiry date is 5 days away!!! L/C is closing on
Us!
Foreign company: I will fax you the copy of the payment receipt.
Korean company: That will not help. I will ask for a grace period to
extend the expiry date by a week.
Foreign company: No issues. That would do. I will inquire with my
bank.
3.4.3 Note:- (Referring to fig.6,7)
Another interesting fact is that the number and spelling errors are not
permitted in L/C. In countries like India and Bangladesh, any errors in
the L/C would mean money. The banks charge $50.00 per errors.
That is why it is necessary to confirm the numbers and names before
preparing the L/C. Countries like China do not charge for minor
mistakes.
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3.4.4 Note:- (Referring to fig.4)
Different banks ask for various kinds of documents
(originals/duplicates) of varying numbers. The important documents
would be commercial invoice, bill of lading, packing lists, shipping
documents, original copies of L/C, etc.
The term “Duplicate” in the L/C would mean -> 2 copies of the
originals.
Sometimes, the banks ask for the signatures in writing to prevent
fraud.
One of the most important tip during this particular transaction was with the
reference to Fig.4 , clause No.13. This statement means that since Bangladesh
is an Islamic nation, no vessel of Israel origin and no shipments of Israel origin
must enter the Bangladesh ports.
3.4.5 Note:-
Letter of credit was the safest way to have transactions with buyers
whom we have little or no information/credibility. The disadvantage is
that it takes an awful long time to get work done. L/C requires tons of
documents both for the applicants as well as for the beneficiary. If not
read carefully, getting payment can be one’s nightmare in the world of
globalization where not only the movements of physical goods have
been shortened but also the process of inquiry to the process of
payment have been shortened due to the technological advances
such as satellites and internet.
The countries where L/C base was used were China, Vietnam and
Bangladesh.
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For companies whose credibility has been long defined through
histories of faithful past transactions, my company uses D/P At Sight
system of payment. The company located in Sri Lanka is a Korean
company and my company makes payments through D/P system.
The advantage is that except Pro forma Invoice, no other documents
are required to obtain payments and to load the ship.
The company also used T/T base of payment which was the quickest.
Facts about types of payment system
A letter of credit is a document issued mostly by a financial
institution which usually provides an irrevocable payment undertaking
(it can also be revocable, confirmed, unconfirmed, transferable or
others e.g. back to back: revolving but is most commonly
irrevocable/confirmed) to a beneficiary against complying documents
as stated in the Letter of Credit. Letter of Credit is abbreviated as an
LC or L/C, and often is referred to as a documentary credit,
abbreviated as DC or D/C, documentary letter of credit, or simply as
credit (as in the UCP 500 and UCP 600). Once the beneficiary or a
presenting bank acting on its behalf, makes a presentation to the
issuing bank or confirming bank, if any, within the expiry date of the
LC, comprising documents complying with the terms and conditions
of the LC, the applicable UCP and international standard banking
practice, the issuing bank or confirming bank, if any, is obliged to
honor irrespective of any instructions from the applicant to the
contrary. In other words, the obligation to honour (usually payment) is
shifted from the applicant to the issuing bank or confirming bank, if
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any. Non-banks can also issue letters of credit however parties must
balance potential risks.
The LC can also be the source of payment for a transaction, meaning
that an exporter will get paid by redeeming the letter of credit. Letters
of credit are used nowadays primarily in international trade
transactions of significant value, for deals between a supplier in one
country and a wholesale customer in another. They are also used in
the land development process to ensure that approved public
facilities (streets, sidewalks, stormwater ponds, etc.) will be built. The
parties to a letter of credit are usually a beneficiary who is to receive
the money, the issuing bank of whom the applicant is a client, and the
advising bank of whom the beneficiary is a client. Since nowadays
almost all letters of credit are irrevocable, (i.e. cannot be amended or
cancelled without prior agreement of the beneficiary, the issuing bank
and the confirming bank, if any). However, the applicant is not a party
to the letter of credit. In executing a transaction, letters of credit
incorporate functions common to giros and Traveler's cheques.
Typically, the documents a beneficiary has to present in order to avail
himself of the credit, are commercial invoice, bill of lading, insurance
documents. However, the list and form of documents is open to
imagination and negotiation and might contain requirements to
present documents issued by a neutral third party evidencing the
quality of the goods shipped.
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How it works
Imagine that a business called the WAPRO from time to time imports
steel from a business called MIL, which banks with the India Business
Bank. WAPRO holds an account at the Commonwealth Financials.
WAPRO wants to buy $500,000 worth of merchandise from MIL, who
agree to sell the goods and give WAPRO 60 days to pay for them, on
the condition that they are provided with a 90-day LC for the full
amount. The steps to get the letter of credit would be as follows:
WAPRO goes to The Commonwealth Financials and requests a
$500,000 letter of credit, with MIL as the beneficiary.
The Commonwealth Financials can issue an LC either on approval of
a standard loan underwriting process or by WAPRO funding it directly
with a deposit of $500,000 plus fees between 1% and 8%.
The Commonwealth Financials sends a copy of the LC to the India
Business Bank, which notifies the MIL that payment is ready and they
can ship the merchandise WAPRO has ordered with the full
assurance of payment to them.
On presentation of the stipulated documents in the letter of credit and
compliance with the terms and conditions of the letter of credit, the
Commonwealth Financials transfers the $500,000 to the India
Business Bank, which then credits the account to the MIL by that
amount.
Note that banks deal only with documents under the letter of credit
and not the underlying transaction.
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Many exporters have misunderstood that the payment is guaranteed
after receiving the LC. The issuing bank is obligated to pay under the
letter of credit only when the stipulated documents are presented and
the terms and conditions of the letter of credit have been met
accordingly.
T/T
The term Telegraphic Transfer or Telex Transfer, often abbreviated
to 'TT', is most often used in UK Banking to refer to a CHAPS
transfer; that is a payment made via the Clearing House Automated
Payments System.
The term is also used to describe other electronic funds transfer
methods and, incorrectly, BACS (Bankers Automated Clearing
Services) and AFTS (Automated Funds Transfer System) payments.
Wire Transfer
Wire transfer is a method of transferring money from one entity to
another. A wire transfer can be made from one entity's bank account
to the other entity's bank account, and by a transfer of cash at a cash
office.
How it works
Bank wire transfers are often the most expedient method for
transferring funds between bank accounts. A bank wire transfer is
effected as follows:
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The sending bank transmits a message, via a secure system (such
as SWIFT or Fedwire), to the receiving bank, requesting that it effect
payment according to the instructions given.
The message also includes settlement instructions. The actual
transfer is not instantaneous: funds may take several hours to move
from the sender's account to the receiver's account.
Either the banks involved must hold a reciprocal account with each
other, or the payment must be sent to a bank with such an account,
or a correspondent bank, for further benefit to the ultimate recipient.
SWIFT
The Society for Worldwide Interbank Financial Telecommunication
("SWIFT") operates a worldwide financial messaging network.
Messages are securely and reliably exchanged between banks and
other financial institutions. SWIFT also markets software and services
to financial institutions, much of it for use on the SWIFTNet Network,
and ISO 9362 bank identifier codes are popularly known as "SWIFT
codes".
The majority of international interbank messages use the SWIFT
network. As of April 2006 SWIFT linked almost 8,000 financial
institutions[1] in 205 countries. SWIFT does not facilitate funds
transfer. Financial institutions would need a corresponding banking
relationship for financial transactions.
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Commercial Invoice
Fig.8: Commercial Invoice
A commercial invoice is document used in foreign trade. It is used
as a customs declaration provided by the person or corporation that
is exporting an item across international borders. Although there is no
standard format, the document must include a few specific pieces of
information such as the parties involved in the shipping transaction,
the goods being transported, the country of manufacture, and the
Harmonized System codes for those goods. A commercial invoice
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must also include a statement certifying that the invoice is true, and a
signature.
A commercial invoice is primarily used to calculate tariffs
What to check for in CI?
Number of document of credit = L/C
Given information = pro forma invoice
Notify parties
Country of origin mark
Amount
3.4.6 Note:-
It is important to note that in most case, buyers have asked to
undervalue products imported to their countries due to the heavy tax
structures of import duties. Although, customs officers are trained to
investigate into such matters, the clause(last line) of fig.7 clearly
states the same.
In such cases, for example, if the total amount was $11000.00, then,
they would send the L/C of $6000.00. The balance amount of
$5000.00 is to be remitted through T/T or through wire transfer to
some other account where tracing of foreign exchanges are difficult.
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Packing List
Fig.9: Packing List
Country of Origin - Made in Korea(refer fig.8)
When shipping products from one country to another, the products may have to be marked with country of origin, and the country of origin will generally be required to be indicated in the export/import documents and governmental submissions. Country of origin will affect its admissibility, the rate of duty, its entitlement to special duty or trade preference programs, antidumping, and government procurement.
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Fig.10: Country of Origin
Today, many products are an outcome of a large number of parts and pieces that come from many different countries, and that may then be assembled together in a third country. In these cases, it's hard to know exactly what is the country of origin, and different rules apply as to how determine their "correct" country of origin. Generally, articles only change their country of origin if the work or material added to an article in the second country constitutes a substantial transformation, or, the article changes its name, tariff code,
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character or use (for instance from wheel to car). Value added in the second country may also be an issue.
What to check for in PL?
Country of origin
Packing type: eg. Pallets, PVC drums/ iron drums etc
L/C number, date of departure
Name of the vessel
Name of departing port, arriving port
Confirm calculations for freight
3.4.7 Note:-
Referring to Fig.9, usually, the rates for shipping is calculated via
CBM(volume). Each shipping company may have different rates.
For instance, the packing of Shin Sung Chemical Co. Ltd. is done by
a PVC/IRON oval container of 100kg, 200kg and 25 kg PVC
rectangular cans with pallets. Upon loading, the pallets sizes are
considered and the prices for the volume are calculated as follows:
Fig.11: Packing list Calculations
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According to the Packing List(fig.9), the actual volume occupied by
10,000kg of 67 drums are 10,000 CBM. But due to the volume
constraints of containers, the calculated volume became 11,530CBM.
The freight rates for 67 drums would be calculated based upon
11,530.
i.e. [Rate/CBM in $] X [11530(CBM)] = [Amount in $]
Fig.12: Weight and Measurement List
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3.5 – Business Process
The next step is to get the goods packed(to pallets so that they don’t
move around in the container) and load onto the ship.
Shin Sung Chemical Co. Ltd. outsources C&F(clearing and
forwarding agents) who arranges for ships and declares the goods to
be exported to customs on our behalf. The declaration is usually done
1 or 2 days before the departure date.
The company uses Hapag-Lloyd to ship goods to Bangladesh and
Shanghai.
Bill of Lading
A bill of lading (also referred to as a BOL or B/L) is a document
issued by a carrier, e.g. a ship's master or by a company's shipping
department, acknowledging that specified goods have been received
on board as cargo for conveyance to a named place for delivery to
the consignee who is usually identified. A through bill of lading
involves the use of at least two different modes of transport from
road, rail, air, and sea. The term derives from the noun "bill", a
schedule of costs for services supplied or to be supplied, and from
the verb "to lade" which means to load a cargo onto a ship or other
form of transport.
Types of Bill of Lading
Straight bill of lading
This bill states that the goods are consigned to a specified person
and it is not negotiable free from existing equities, i.e. any endorsee
acquires no better rights than those held by the endorsor. So, for
39
example, if the carrier or another holds a lien over the goods as
security for unpaid debts, the endorsee is bound by the lien although,
if the endorsor wrongfully failed to disclose the charge, the endorsee
will have a right to claim damages for failing to transfer an
unencumbered title.
Also known as a non-negotiable bill of lading.
Order bill of lading
This bill uses express words to make the bill negotiable, e.g. it states
that delivery is to be made to the further order of the consignee using
words such as "delivery to A Ltd. or to order or assigns".
Consequently, it can be endorsed by A Ltd. or the right to take
delivery can be transferred by physical delivery of the bill
accompanied by adequate evidence of A Ltd.'s intention to transfer.
Also known as a negotiable bill of lading.
Bearer bill of lading
This bill states that delivery shall be made to whosoever holds the bill.
Such bill may be created explicitly or it is an order bill that fails to
nominate the consignee whether in its original form or through an
endorsement in blank. A bearer bill can be negotiated by physical
delivery.
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What to check for in B/L?
B/L Number
Name of vessel
Vessel Number
Date of shipping
Seal Number
3.5.1 Note:-
Seal Number is the number printed on top of the container lock to
prevent tempering (smuggling/sabotaging).
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Bill of Lading
Fig.13: Bill of Lading
42
Fig.14: Bill of Lading
43
Fig.15: Bill of Lading
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3.6 – Business Process
From the moment where the goods have been shipped on board the
vessel and awaiting to be departed, the beneficiary is entitled to
collect the payment against the goods from the bank.
The documents mentioned in fig.4 must be produced before the bank
to receive the payment.
Once the payment has been made to the company’s account, it was
my job to confirm the payment and send a note of appreciation and
gratitude to the buyer for having successfully ended another business
transaction and hope for better opportunities and deals in future.
3.6.1 Summary of Business Process
After a contract is concluded
between buyer and seller, buyer's
bank supplies a letter of credit to
seller.
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Seller consigns the goods to a
carrier in exchange for a bill of
lading.
Seller provides bill of lading to
bank in exchange for payment.
Seller's bank exchanges bill of
lading for payment from buyer's
bank. Buyer's bank exchanges
bill of lading for payment from
buyer
Buyer provides bill of lading to carrier and takes delivery of goods.
3.6.2 Summary of Observations
46
1. Business transactions done manually. The documents related to each business trading were stored in a file with reference numbers.
2. Most transactions were done over phone calls.(international business included)
3. Documents like L/C, P/I, P/L, B/L, C/R, C/I etc were emailed and couriered.
4. Need for constant updating regarding status of orders/shipments through constant phone calls with superiors and sub-ordinates.
5. Work load per person was quite high due to concentration of power and one person handled variety of work.
6. In order to keep every employee of the same department at constant pace, a massive central white board was erected which keeps track of various shipments/order status.
7. The board contained information about the current order, buyer’s information, contact details, and the name of the concerned person in charge, and a deadline to meet the objective.
8. The company does not have a web-site.
9. The company has the history of long term relationship with buyers both from Korea and international markets.
47
10. The buyers come to know about the company through word-of-mouth publicity, through acquaintances, exhibitions and trade fairs (COEX, Chem-Spec), through KOTRA, KITA.
11. Had to visit India with the company President to evaluate a buyer, study the credibility and finalize the deal (pricing).
12. Need to change pricing policy according to the type of shipments(CFR/FOB/CIF)
13. The provision of a Certificate of Weight and Measurement was requested by a buyer which made no sense.
14. Getting payment was a big headache with L/C. Different types of documents and certificates were required to produce before the SC/Jaeil Bank of Korea. The number of copies, types(original/duplicate) etc need to match as per L/C.
15. Had to travel 4 times to get the right documents. Different banks require different documents.
16. Getting B/L was easy as the company had the C&F agents. The goods were loaded from dock to the ship within a day.
17. Port and dock clearance papers were issued within a day.
18. Faced a problem with a foreign buyer because of delay in payment. Had to ask the Bank to extend the expiry date of L/C to prevent filing of bankruptcy.
19. Had to pay $50 per error at the bank because of incorrect spelling errors.
20. Transaction done through L/C at Sight with buyers located in India, Bangladesh, Vietnam and China.
48
21. Transaction done through D/P at Sight with a buyer in Sri Lanka.
22. Because of tax related issues with buyers, a part of payment was done through L/C (taxable amount) and a part of payment was done through T/T. (i.e. undervalue pricing system)
23. Container Seal number was faxed to the buyer.
24. Pricing for dyestuff was expensive than other existing companies.
25. Cumbersome to calculate CBM every time the shipments are dispatched.
26. Most of employees were veterans. Have been working with the company for at least 5 years.
27. Only 3 employees knew communication skills in English.(President included)
28. Payments were not the greatest part which was compensated by handsome bonus, frequent M/T, and the system of Korean traditional work-culture.
29. Small facility of employee strength of 20.
30. Veteran skilled technician and workers of high productivity and know-how.
31. Easy accessibility to the company via public transport system such as Seoul Metro and bus, taxi services.(Located in Siheung Industrial Development Zone)
49
32. The company is not ISO9001, ISO14001 certified company.
33. The company carries KQ, KS certificate.
34. There was President’s involvement at every stage of business.
35. He was updated regularly even during his leave/foreign tour/business trip.
36. President always says “ Palli Palli!!!” means, get the work done “quickly quickly”
37. There was an issue with the Korean Bank we were operating with because the Bank manger failed to send the Certificate of Credit Report to the foreign buyer. The certificate was required by the buyer to obtain L/C from the Bank.
38. The Bank Manager was the President’s Junior. (Korean society is structured around Senior-Junior hierarchy system). As such he felt there was no need to send the credit report which resulted in delay.
39. Serious work cultures. Koreans are “workaholic”. To able to adapt to Korean work culture will take some time.
40. Being a vegetarian, going to dinner-get-together every fortnight in Korea was a heavy burden for me.
41. Even after heavy drinks(till 4am to 5 am), the employees showed up for work on time.(with their eyes swollen)
50
42. The foreign buyer was late by 2 hours for the meeting in Korea.
43. Got lot of pounding from my supervisor for errors in documentation, reports, slow performance etc during first 3 weeks.
44. Most of binding between employees and employers take place over get-togethers. Also, the work knowledge is gained through Seniors during this time.
45. Foreign buyers felt very awkward and took time to get used to this kind of culture.
51
3.6.3 CONCLUSION FROM OBSERVATIONS
1. Constant communication to update employees was very
tiresome.
2. Lot of paper work involved inside the organization.
3. Working hours often extended beyond the fixed time frame.
4. Employees under pressure to meet the dead line.
5. Being a trading company, lacked English communication skills.
6. Because of its long history of business relations, every order
was handled with professionalism.
7. No “how to?” but “is it done?” or “why is it still not done?”
8. Because of very strong tie-ups between Korean suppliers and
agents within Korea, orders were able to meet its deadlines .i.e
Korean one phone call policy.
9. President is the founder of the company. Very energetic man
and has his nose in every activity of the company.
10. Business transactions and records are still maintained in
an old fashioned and traditional way.
11. The amount of trading done per year is still not large
enough to incorporate a centralized software system.
12. Because of long standing relationship with the Korean
C&F agents, just a phone call is sufficient enough to get
documents required. (Convenience)
13. Overall, it is a well established company of great potential
due to short lead-time and can fulfill the customer’s
requirements.
52
14. Should not “always” join the dinner-get-together because
all they do is eat “non-veg” food and drink.
15. Showed dedication and responsibility towards work no
matter what happens previous day.
16. Need for improvement in understanding and respecting
foreign cultures were required.
Koreans only follow” When is Rome, do what Romans do”.
53
3.6.4 RECOMMENDATIONS
1. Employee training program to understand the culture of buyers
through courses in English.
2. Understanding the customer’s requirement and providing a
comfortable stay during their visit to Korea.
3. Integration of globalizations and phase-wise removal of Korean
Senior-Junior system within the organizations.
4. Software upgrades so that the President can have a better
understanding of the current status of business through web
instead of having him to call upon his sub-ordinates every now
and then.
5. Better tie-ups with KOTRA and KITA to expand business in
India and Europe.
6. Expanding business by manufacturing some of key
components of final products(dye stuff) so that in 5 to 10 years
down the line, the company can be competitive enough to face
the challenges in pricing.
7. Request the Bangladesh buyers to abolish the need for
Certificate of Weight and Measurement.(Packing List contains
the same information)
8. Even though the company has the long history of business
relations with foreign buyers, it still uses L/C system. Both the
parties must now take a step to trust each other and use
SWIFT or or D/P T/T base so that the dealings can go a lot
easier.
54
9. The company must construct a web-site in order to grow and
become a global player.
10. The company only has short term goals as of now. The
President must prepare long term goals for himself and his
company to face challenges ahead in 10 years time.
11. The company should throw away the goal of “buying and
selling” and embrace the long term relationship with buyers.
55
Chapter 4
Korean Trade Centers
4.1 KOTRA
KOTRA, initially the
Korea Trade
Promotion
Corporation, were established in 1962 as a national trade promotion
organization. Since then, it has successfully facilitated Korea's rapid export-led
economic development through various trade promotion activities such as
overseas market surveys and business matchmaking.
In August 1995, cross-border investment promotion and support for technological
and industrial cooperation projects was added to KOTRA's mandate, and it was
renamed the Korea Trade-Investment Promotion Agency(KOTRA).
KOTRA currently operates Invest KOREA, the national investment promotion
agency. Originally initiated as the Korea Investment Service Center(KISC) in
1998, the agency was relaunched as Invest KOREA in November 2003 to
support foreign investors by offering more powerful incentives and an expanded
range of services.
KOTRA is now well-equipped to pursue its twin mandates of trade and
investment promotion to enhance national prosperity and competitiveness, with
the ultimate goal of positioning Korea as the business and economic hub of
Northeast Asia. With its long-term experience and expertise, KOTRA serves and
assists all interested parties worldwide to do business with Korea.
56
In order to execute its mandates more efficiently, KOTRA has opened an
extensive worldwide network of overseas Korea Trade Centers(KTC).
As of 2007, 93 KTCs are operating in 68 countries.
And to take maximum advantage of the era of E-Commerce, KOTRA launched
the interactive Internet portal sites of INVEST KOREA Online(formerly Cyber
KISC) in 2003 and BuyKorea in 2004, respectively.
KOTRA Academy was launched in 2003 as a professional learning center for
international business. In the long run, KOTRA's well-trained trade and
investment manpower, armed with relevant theoretical and practical knowledge,
will bolster the nation's trade and investment infrastructure.
In-depth Research and Seminars
Through the analysis of the information gathered by its local and overseas
networks, KOTRA draws insightful conclusions on a variety of trade and
investment issues that help firms to respond promptly to the rapidly-changing
global economic environment. With the help of Korea Trade Centers at home and
abroad, the research teams operating at KOTRA's head office issue publications
as well as hold seminars on world trade regimes and regional market conditions.
Trade Information Library
The Trade Information Library at KOTRA's headquarters offers current
information on each country's market and investment conditions gathered
through its Korea Trade Centers. It provides an extensive range of resources
such as business directories, tariff schedules, periodicals and much more.
Computer access is readily available at the Library, enabling users to quickly
access the information they require.
Overseas Investment Support Center
While inbound investment promotion is led by Invest KOREA, outbound
investment support is provided by the Overseas Investment Support Center. The
center offers Korean companies detailed information on each country's
investment conditions and procedures. For those foreign governments eager to
57
attract Korean investors , the center helps hold investment promotion seminars in
Korea by arranging the participation of relevant domestic companies.
Business Matchmaking
On request, KOTRA introduces overseas buyers to the most appropriate
business partners in Korea through our wide-ranging inquiry network as well as
business meetings held year round. KOTRA provides buyers visiting Korea with
assistance in arranging business meetings with Korean companies and collecting
information on Korean products and suppliers. KOTRA also dispatches groups of
Korean exporters abroad to explore global markets with the help of local Korea
Trade Centers.
International Exhibitions
KOTRA organizes international exhibitions in Korea as well as large-scale
Korean product shows in strategic markets abroad. In addition, KOTRA arranges
the participation of domestic companies in similar events overseas through its
"Korea Pavilions". While international trade fairs remain an effective way of
displaying the nation's high-quality products and technologies, KOTRA will step
up its efforts to make the occasions more specialized and sophisticated.
e-Trade
KOTRA operates the Cyber Business Center at its Seoul headquarters where
overseas buyers can hold online business meetings with domestic companies
regardless of time and location. Not only do these cyber business meetings offer
companies preparatory partner searching opportunities, but they also enable
business interactions to continue during difficult times such as the Iraqi war and
the SARS epidemic when normal travel is impeded.
58
4.2 KITA
Over the past half-century, KITA has grown into a trade
promotion agency representing Korea. KITA provides a
variety of direct services such as business arrangements and trade consulting. It
also assists trading companies in resolving grievances by reporting them to
relevant government authorities. KITA will continue to enhance public awareness
on the significance of trade in order to foster and promote Korea's commercial
potential with the global community.
It has been and will continue to be in the 21st century the driving force behind
Korea's international trade by building the necessary infrastructure through the
training of trade experts, establishing cyber trade infrastructure, hosting
international special exhibitions, and implementing new trade strategies.
Teaming up with member companies in the 21st century.
KITA enters the new century hand-in-hand with its members by developing
diverse services for the benefit of its members. KITA supports trading firms by
providing core projects with a competitive edge.Fostering trade experts who will
lead Korea's international trade in the 21st century.
Located on the 4th of COEX, the World
Trade Academy boasts the best faculty,
cutting-edge computer labs, language
labs, and classrooms. It is also proud of
supplying the trading industry annually
with over 10,000 new trade
professionals enrolled in a selection of 200 courses. These professionals will be
the future leaders of Korea in an era of information and globalization.
59
Building Cyber Trade Infrastructures.
In preparation for the coming cyber trade era, KITA is constructing infrastructure
that will allow member companies to conduct cyber trade with ease and at a low
cost. Hosting International Special Exhibitions and International Conferences.
KITA attracts overseas buyers and provides opportunities to member companies
to do business with them. KITA fosters world-class, large-scale special
exhibitions and international conferences by making full use of the COEX
infrastructure.
Implementing New Trade Strategies for the 21st Century.
KITA will extend the common understanding of trade, previously thought to be
only transactions in commodities, to a broader definition that includes services,
such as tourism, finance, and trade infrastructure. It is committed to making
Korea a hub of international business by developing new strategies and avenues
of trade. KITA's goal is to create a Korea where goods, information, people and
capital from all over the world interact in a free market environment.
60
Chapter 5
Conclusion
The Internet has redefined the concept of national borders,
accelerating the integration of the global market. The free flow of
goods, capital and labor among countries is driving the fierce global
competition that presents enormous opportunities as well as great
threats. Today, it is such intangible values as human knowledge and
creativity that count most, and it is in these areas that Shin Sung
Chemical Co. Ltd. has immense potential.
Trade Shows and conferences still remain the most effective way for
companies to enter new markets. The advent of the web and internet
has changed the way business is done, bringing the world closer and,
at the same time, providing new challenges for business-to-business,
face-to-face events everywhere.
Even though it’s a cliché — we are indeed living in a global economy!
Trade show, corporate event and conference organizers be they for-
profit or not-for–profit, must deal with this important growth sector.
International business continues to be based on relationships and
“face-to-face” encounters. Most show companies and associations
producing their own shows and events cannot afford staff dedicated
exclusively to international relations.
61
In the end, I would like to add that not only was I satisfied with the
experience and knowledge I have gained during my internship but
honored and privileged for having an opportunity to contribute both to
the organization as well as to the world of international trade, bringing
the world a step closer with every business deals.
62
Chapter 6
Product List: Surfactants (Surface Active Agents)
The following chemicals are used to treat cotton:
Trade Name Characteristics
1. NEW-SCLEAN-230 Low foaming, scouring agents
2 SCLEAN-HS Scouring agents for synthetic fiber
3 SCBILER-A Non-silica stabilizing agents
4 PENET-OT Penetrating and leveling agents
5 LEVELIN-BS Leveling agents for reactive dyestuff
6 SCLEAN-530 Chelating agents
SCLEAN-1500
SCLEAN-2500
7 SCLEAN-VS Soaping agents for cotton
8 SCLEAN-SR Soaping agents
9 SCLEAN-HS500 Soaping and dyestuff anti-soiling
agents
10 NEOFIX-CT Fixing agents for reactive dyestuff
NEOFIX-CR
11 SOFTER-220 Low foaming type softening agents
12 SOFTER-230 Softener for synthetic & natural fibers
13 SOFTER-250 Softener for cotton & T/C
14 SILICONE-NS Silicone softener
15 SILICONE S-600 Softening agents for all fibers
63
NEW SILICONE SF
200S
16 SOFTEX-PT 100 Softener for all fibers in dyeing
process
17 BILIZER-K Hydro peroxide neutralizer
NEOSOL-BH
18 SOFTEX-700 Cheese oiling agents
19 ANTIBA-BH Antibacterial finishing agents
20 SODA-PS Soda-ash substitution
21 SOFTEX-PM Ant creasing agents
22 SCLEAN-2000 Requesting agents
23 BIOTEX-PIL Enzyme
64
Chapter 7
CHEMICAL AUXILIARIES
NEW SCLEAN-230
Low foaming, scouring agents
Properties *NEW SCLEAN-230 has good stability to acid &
alkali.
*NEW SCLEAN-230 combined with a high scouring
effect and a good wetting
power.
*NEW SCLEAN-230 has excellent emulsifying
properties for several oil and
fats.
*NEW SCLEAN-230 has excellent scouring effect for
synthetic and natural
fibres
*NEW SCLEAN-230 A.P.E.O phenol free
Type of
product
Special anion & nonion compounds
Ionic
Character
Nonion/Anion
Appearance Light yellow clear liquid
pH (5% sol’n) 7.0 ± 1.0
65
Method of
application
Generally : 2.0 – 3.0 g/l
Packing 100Kg pvc drum, 150Kg pvc drum
SCLEAN-HS
Scouring agents for synthetic fiber
Properties *SCLEAN-HS removes many kinds of wax &oil on
synthetic fiber.
*SCLEAN-HS has good stability to acid & alkali.
*SCLEAN-HS combined with a high scouring effect
and a good wetting power.
*SCLEAN-HS has excellent emulsifying properties for
several oil and fats.
*SCLEAN-HS has excellent scouring effect for
synthetic fibres and low
foaming.
Type of
product
Special anion & nonion compounds
Ionic
Character
Anion
Appearance Transparent liquid
pH (5% sol’n) 7.0 – 8.0
Method of
application
*Generally : 2.0 – 4.0 g/l
*NaOH : 15g/l
Packing 100Kg pvc drum, 150Kg pvc drum
SCBILER-A
66
Non-silica stabilizing agents
Properties *SCBILER-A stabilized on high temperature for three
months, if separated.
Please stir and use.
*SCBILER-A as a non-silica agents, there is no
damage on machine and
fabric, which may arise from using of silica.
*SCBILER-A case to remove impurities on cotton,
and no reattachment of
impurities.
*SCBILER-A by the reaction with metallic ion on the
bath, restrains from the activation of Fe ion.
Type of
product
Special polymer compounds
Ionic
Character
Anion
Appearance Light yellowish clear liquid
pH (5% sol’n) 7.0 ± 0.5
Method of
application
*Winch : Liquor ratio : 1 : 10 – 20
H2O2 (35%) : 5~7g/l
NaOH (38°Be) : 5~7g/l
SCBILER-A : 2~3g/l
*Package : Liquor ratio : 1 : 5 ~ 1 : 10
H2O2 (35%) : 7~10g/l
NaOH (38°Be) : 1~2g/l
SCBILER-A : 2~3g/l
67
*Jigger : Liquor ratio : 1 : 2 ~ 1 : 1
H2O2 (35%) : 7~14g/l
NaOH (38°Be) : 10~15g/l
SCBILER-A : 5~7g/l
※ To promote bleaching effectiveness,
it is better to add NEOSOL-BH and to be more
stabilized,
and SCLEAN-1500
Packing 100Kg pvc drum, 150Kg pvc drum
PENET-OT
Penetrating and levelling agents
Properties *PENET-OT dissolved in cold water.
*PENET-OT stability against acid, alkali and all kinds
of peroxide and
reduction agent.
*PENET-OT full effectiveness of anti-contamination
thanks to superior
emulsion and dispersing power.
*PENET-OT by using on the reactive dyestuff and
direct dyestuff, first
adhesion power is distinctive. Therefore, equalized
and clear color is obtained.
Type of
product
Sodium dioctyl sulfosuccinate
Ionic Anion
68
Character
Appearance Non-color clear liquid
pH (5% sol’n) 7.0 ± 0.5
Method of
application
*Preventing agents of precipitation : 1.5 – 2.0 % o.w.f
*Penetrating and levelling agents : 1.0 – 1.5 % o.w.f
Packing 100Kg pvc drum, 150Kg pvc drum
LEVELIN-BS
Levelling agents for reactive dyestuff
Properties *LEVELIN-BS dissolved in cold and hot water.
*LEVELIN-BS levelling power is distinctive when
dyed by reactive
dyes for the cotton or T/C, especially for the
mercerized yarn knit.
*LEVELIN-BS avoids precipitaion of different ionic
dyestuff.
*LEVELIN-BS no phenomenon of dyestuff flock due
to metal
chelation power.
*LEVELIN-BS levelled and clear color is obtained.
Type of
product
Special polymer compounds
Ionic
Character
Nonion
69
Appearance Non-color clear liquid
pH (5% sol’n) 7.0 ± 0.5
Method of
application
*When applied as a precipitaion protection agents
:2.0~3.0% o.w.f between dyestuff and dyestuff
*as a levelling agents
:1.0~3.0% o.w.f 4 or 5 minutes before dyes pouring
Packing 100Kg pvc drum, 150Kg pvc drum
SCLEAN-530
Chelating agents
Properties *SCLEAN -530 dissolved in cold and hot water
*SCLEAN -530 avoids recontamination
*SCLEAN -530 dispersing, levelling effectiveness
*SCLEAN -530 good for white bleaching
*SCLEAN -530 stability against heat for cheese
dyeing and all kinds of
package dyeing .
Type of
product
Special polymer compounds
Ionic
Character
Nonion
Appearance Light yellow clear liquid
pH (5% sol’n) 8.0 - 9.0
Method of
application
Generally : 0.2 – 1.0 g/l
70
Packing 100Kg pvc drum, 150Kg pvc drum
SCLEAN-1500
Chelating agents
Properties *SCLEAN -1500 dissolved in cold and hot water
*SCLEAN -1500 avoids recontamination
*SCLEAN -1500 dispersing, levelling effectiveness
*SCLEAN -1500 good for white bleaching
*SCLEAN -1500 stability against heat for cheese
dyeing and all kinds of
package dyeing
Type of
product
Special polymer compounds
Ionic
Character
Anion
Appearance Light yellow clear liquid
pH (5% sol’n) 8.0 ± 1.0
Method of
application
Generally : 0.2 – 1.0 g/l
Packing 100Kg pvc drum, 150Kg pvc drum
SCLEAN-2500
Chelating agents
Properties *SCLEAN -2500 dissolved in cold and hot water
71
*SCLEAN -2500 avoids recontamination
*SCLEAN -2500 dispersing, levelling effectiveness
*SCLEAN -2500 good for white bleaching
*SCLEAN -2500 stability against heat for cheese
dyeing and all kinds of
package dyeing
Type of
product
Special polymer and inorganic compounds
Ionic
Character
Anion
Appearance Clear liquid
pH (5% sol’n) 7.0 ± 0.5
Method of
application
Generally : 0.2 – 1.0 g/l
Packing 100Kg pvc drum, 150Kg pvc drum
SCLEAN-VS
Soaping agents for cotton
Properties *SCLEAN-VS has a good soaping power for excellent
good wetting power &
penetrating power.
*SCLEAN-VS has low foaming for continuous
processing.
72
*SCLEAN-VS have no color changed & improving
soaping power during processing.
Type of
product
Special anionic
Ionic
Character
Anion
Appearance Yellow liquid
pH (5% sol’n) 8.0 ± 1.0
Method of
application
Generally : 0.5 – 4.0 g/l
Packing 100Kg pvc drum, 150Kg pvc drum
SCLEAN-SR
Soaping agents
Properties *SCLEAN -SR dissolved in cold and hot water
*SCLEAN -SR avoids recontamination
*SCLEAN -SR dispersing, levelling effectiveness
*SCLEAN -SR stability against water which include
many kinds of
metal ion.
73
Type of
product
Special polymer compounds
Ionic
Character
Anion
Appearance Transparent liquid
pH (5% sol’n) 8.0 ± 1.0
Method of
application
Generally : 0.5 – 4.0 g/l
Packing 100Kg pvc drum, 150Kg pvc drum
SCLEAN-HS500
Soaping and dyestuff anti-soiling agents
Properties *SCLEAN –HS500 dissolved in hot water
*SCLEAN –HS500 as anti-soiling agents of reactive
dyestuff and acid
dyestuff, it protects from soiling into the other fibers
during the soaping
process.
*SCLEAN –HS500 avoids contamination of stripe
74
fiber and printing fiber.
*SCLEAN –HS500 promotes fastness and clear the
color by removing the
unfixed dyes.
Type of
product
Polyoxyethylene alkyl ether
Ionic
Character
Nonion
Appearance Light brown liquid
pH (5% sol’n) 6.5 ± 0.5
Method of
application
Generally : 2.0 – 4.0 g/l
※ Used in accordance with the most suitable soaping
temperature
Packing 100Kg pvc drum, 150Kg pvc drum
NEOFIX-CT
Fixing agents for reactive dyestuff
Properties *NEOFIX-CT dissolved in cold and hot water.
*NEOFIX-CT full fixing effectiveness for to knitting
fibres such as T/C, cotton,
towel and woven fibres as well.
*NEOFIX-CT no color changed.
*NEOFIX-CT no affect of softness of fibres.
Type of
product
Polyamine compounds
Ionic
Character
Cationic
75
Appearance Light yellowish clear liquid
pH (5% sol’n) 5.0 ± 1.0
Method of
application
*Light color : 0.25 – 0.5 % o.w.f
*Medium color : 0.5 – 1.0 % o.w.f
*Dark color : 1.0 – 2.0 % o.w.f
Packing 100Kg pvc drum, 150Kg pvc drum
SOFTER-220
Low foaming type softening agents
Properties *SOFTER-220 dissolved in cold and hot water.
*SOFTER-220 low foaming type.
*SOFTER-220 strong penetrasting power and
superior softness especially foer woven fibers.
*SOFTER-220 stability against heat, and no color
changed during process.
*SOFTER-220 provides convenient and economic
working condition.
Type of
product
High fatty acid ester
Ionic
Character
Weak cation
76
Appearance Viscose liquid
pH (5% sol’n) Weak acid
Method of
application
Generally : 3.0 – 5.0 % o.w.f
Packing 100Kg pvc drum, 150Kg pvc drum
SOFTER-230
Softener for synthetic & natural fibers
Properties *SOFTER-230 has a excellent solubility in cold
water.
*SOFTER-230 superior softening power for the
polyester & T/C.
*SOFTER-230 promotes basting power.
*SOFTER-230 provides the feeling of silky touch.
*SOFTER-230 equalized softness effect .
Type of
product
Polyamide derivative
Ionic
Character
Weak cation
Appearance Light yellowish liquid
pH (5% sol’n) Weak acid
77
Method of
application
Generally : 3.0 % o.w.f
Packing 100Kg pvc drum, 150Kg pvc drum
SOFTER-250
Softener for cotton & T/C
Properties *SOFTER-250 dissolved in cold and hot water .
*SOFTER-250 no affect of physical property for
cotton & T/C.
*SOFTER-250 promotes dry, wet fastness & crease
resistance.
*SOFTER-250 good elasticity.
Type of
product
Special polymer compound
Ionic
Character
Weak cation
Appearance Milky emulsion liquid
pH (5% sol’n) 6.0 ± 0.5
Method of Generally : 2.0 – 5.0 % o.w.f
78
application
Packing 100Kg pvc drum, 150Kg pvc drum
SILICONE-NS
Silicone softener
Properties *SOFTER-250 dissolved in cold and hot water .
*SOFTER-250 no affect of physical property for
cotton & T/C.
*SOFTER-250 promotes dry, wet fastness & crease
resistance.
*SOFTER-250 good elasticity.
Type of
product
High fatty acid & amino silicone mixture
Ionic
Character
Weak cation
Appearance Milky liquid
pH (5% sol’n) Weak acid
Method of
application
Generally : 3.0 – 5.0 % o.w.f
79
Packing 100Kg pvc drum, 150Kg pvc drum
SILICONE S-600
Softening agents for all fibers
Properties *SILICONE S-600 no yellowing type.
*SILICONE S-600 dissolved in cold water.
*SILICONE S-600 stabilized to weak acid and weak
alkali, however, better
treatment under neutrality.
*SILICONE S-600 good for cold weather, however,
carefulness for freeze is
needed in the extremely cold season.
*SILICONE S-600 multi-use with other treatment
agents is possible except
anionic materials.
*SILICONE S-600 semi-permanent softness for all
kinds of fibers.
Type of
product
Special amino modified silicone compounds
Ionic Weak cation
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Character
Appearance Clear liquid or bluish clear liquid
pH (5% sol’n) Weak acid
Method of
application
*Usage : 0.5 – 1.5 % o.w.f in case of single
application
*Curing : 15 – 20 seconds under 150 - 170 ℃
Packing 100Kg pvc drum, 150Kg pvc drum
NEW SILICONE SF 200S
Softening agents for all fibers
Properties *NEW SILICONE SF200S dissolved in cold water.
*NEW SILICONE SF200S stabilized to weak acid and
weak alkali, however,
better treatment under neutrality.
*NEW SILICONE SF200S good for cold weather,
however, carefulness for
freeze is needed in the extremely cold season.
*NEW SILICONE SF200S multi-use with other
treatment agents is possible
except anionic materials.
*NEW SILICONE SF200S semi-permanent softness
for all kinds of fibers.
Type of
product
Special amino modified silicone compounds
Ionic
Character
Weak cation
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Appearance Clear liquid or bluish clear liquid
pH (5% sol’n) 6.0 ± 0.5
Method of
application
*Usage : 0.3 – 1.0 % o.w.f in case of single
application
*Curing : 15 – 20 seconds under 150 - 170 ℃
Packing 100Kg pvc drum, 150Kg pvc drum
SOFTEX-PT 100
Softener for all fibers in dyeing process
Properties *SOFTEX-PT 100 crease proofing agents.
*SOFTEX-PT 100 prevents occurrence of all kinds of
creases in baths.
*SOFTEX-PT 100 uniform dyeing can be obtained.
*SOFTEX-PT 100 very stable toward alkalis and
other chemicals.
*SOFTEX-PT 100 gives excellent softness in bath.
*SOFTEX-PT 100 spratically no adverse effects on
light fastness.
Type of
product
High fatty acid ester derivatives
Ionic
Character
Nonion
Appearance Light yellowish liquid
pH (5% sol’n) 8.0 ± 1.0
Method of
application
Apllication in the dye bath
*Generally 0.5 – 2.0 g/l
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Packing 100Kg pvc drum, 150Kg pvc drum
BILIZER-K
Hydroperoxide neutralizer
Properties *BILIZER-K dissolved in cold water.
Type of
product
Special high molecular compounds
Ionic
Character
Nonion/Anion
Appearance Light yellow liquid
pH (5% sol’n) 7.0 ± 0.5
Method of
application
Generally 0.5 – 2.0 g/l
Packing 100Kg pvc drum, 150Kg pvc drum
83
NEOSOL-BH
Hydroperoxide neutralizer
Properties *NEOSOL-BH dissolved in cold water.
Type of
product
Special high molecular compounds
Ionic
Character
Nonion/Anion
Appearance Light yellow liquid
pH (5% sol’n) 7.0 ± 0.5
Method of
application
Generally 0.5 – 2.0 g/l
Packing 100Kg pvc drum, 150Kg pvc drum
84
SOFTEX-700
Cheese oiling agents
SOFTEX-700 is a cheese oiling agent and is recommended for
cotton, T/C and all synthetic fibers with excellent properties of
softening, levelling and antistatic
Properties *SOFTEX-700 dissolved in cold and warm water.
*SOFTEX-700 works well for the both side of out and
in, without difference.
*SOFTEX-700 is very stable for the pressure of
pump.
*SOFTEX-700 is stable for heat.
*SOFTEX-700 is stable in G salt.
*SOFTEX-700 is very fine practice size.
*SOFTEX-700 is stable for 6 months in the standard
condition..
Type of
product
Wax emulsion
Ionic
Character
Nonion
Appearance White emulsion
pH (5% sol’n) 6.0 ± 0.5
Method of Generally :appr. 3 – 5%(O.W.F)l
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application
Packing 100Kg pvc drum, 150Kg pvc drum
ANTIBA-BH
Antibacteria finishing agents
ANTIBA-BH imparts the antibacteria and deodorant effect for cotton,
wool, T/C, A/W, N/W, acryl etc. Aliphatic softening agent has no
antibacteria ability, so it cause undesirable smell and fungi during
long time with high temperature and humidity.
Properties *ANTIBA-BH dissolved in cold and warm water.
*ANTIBA-BH is a good antibacteria finishing agent
and also prevent fungi.
*ANTIBA-BH has good compatibility with several
softening agent, there is no
change of color and side effect.
Type of
product
Aliphatic component
Ionic
Character
Anion/Nonion
Appearance Yellowish liquid
pH (5% sol’n) 6.5 – 7.0
Method of
application
Generally :0.2 – 0.5%(O.W.F)l
Available use with softening agent and antistic agent
after soaping stage.
Packing 100Kg pvc drum
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SODA-PS
Liquid Soda Ash
Soda-PS is a compount liquid carpling agent to make reactive dyes
be solidificated to cellulose fiber. This is new products comparing to
Na2CO3,NaOH or other common Alkali agents, mostly used by now.
It may decreaseyour costs, be used easier.
Properties * High concentrated liquid type, can be used easily.
well soluble, no precipit
-ate.
*Purity is higher than other agents so that you can get
excellent touch effects.
*Worker can use it easily due that it can not make
any bubble during works.
*pH Level is kept in stable during dyeing.( Can get
the high depth of color )
*Just used only 1/2 water on watering procedure after
dyeing considering other
common agents.
Type of
product
Alkali agent
Ionic
Character
Anion/Nonion
Appearance Light yellow transparent liquid
pH (5% sol’n) 6.0 ± 0.5
87
Method of
application
Generally :0.2 – 0.5%(O.W.F)l
Available use with softening agent and antistic agent
after soaping stage.
Packing 100Kg pvc drum
Na2CO3, SODA-PS watering frequency comparison
*Alkalinity drops easily during watering procedure. (pH 11 -> pH 8 -
9).
(can save using water, time and energy)
* Using Quantity : SODA - PS is high density liquid type so can be
used just 1 time without decomposition materials.
Na2CO3, Soda - PS using quantity comparison
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Fig.16: Quantity Comparison
* It can be needed some changes according to the mixed proportion
of using dyeing agents. so, choose the proper concentration after
examination in laboratory.
Packing
150Kg pvc drum, 300Kg drum
SOFTEX-PM
Anticreasing agents
SOFTEX-PM is a newly developed lubri cant,anticreasing, and
dispersing & levelling agent when scouring, desizing of synthetic
fibers in rutary washer or, when scouring and dyeing of cotton,
viscose rayon.
It is excellent to prevent the crease and folded mark when scouring
and desizing of polyester in Rotary washer, and when pouring,
desizing, dyeing of viscose rayon, tencel, cotton, T/C, wool
in low bath ratio M/C such as rapid, vertical, M/C.
In this manner, it can be obtained the high quality products by
improvement of levelling effect and circulation in M/C.
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Properties *SOFTEX-PM solves perfectly the problem of crease
caused when dyeing and finishing of Tencel. Also, it
can be obtained the even rising fine-hair effect by
using to Sand-Washing finishing process.
*When use SOFTEX-PM to dyeing and finishing
process, it can decrease the using quantity of
the finishing agent by improvement of touch of the
dyed fabrics.
*SOFTEX-PM solves the problem of crease of cotton
knit specially 10’s, 20’s when dyeiing and finishing.
*SOFTEX-PM is non-foaming type and it increase the
operating efficiency of low bath ratio M/C such as
rapid M/C etc by improvement of circulation of th
dyed fabrics
Type of
product
Specific high polymer compound
Ionic
Character
Weak Anion
Appearance Colorless Transparent Liquid
pH (5% sol’n) 7.0 ± 1.0
Method of
application
Though it depends on the kinds of fabric and
workingcondition.
Generally use 1~3%(O.W.F)..
Packing 100Kg pvc drum, 150Kg pvc drum
90
BIOTEX-PIL
Enzyme
Production Information
DESCRIPTION
BIOTEX-PIL textile finishing enzyme is a concentrated liquid
formulation of Cellulase enzymes designed for textile applications
such as fabric and garment biofinishing(i.e. depilling, surface
modifications, and softening). BIOTEX-PIL is also ideal for denim
washing, as well as for achieving an aged look on various types of
cellulosics.
ADVANTAGES
Versatile. Provides abrasion, surface polishing, and softening with
low enzyme dosages on a variety of cellulosic fabrics and garments.
Reduces Stone Volume Requirements. Using fewer stone in denim
washing fabric damage and machine wear, improves waste treatment
and permits more garments per load. Reduces Cycle Time. This
enzyme requires less process time than neutral or alkaline cellulase.
Less cycle time results in more throughput. Concentrated. BIOTEX-
PIL enzyme is a concentrated product which provides formulation
flexibility for differentiation by the Textile Chemical Formulator.
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APPLICATION
BIOTEX-PIL enzyme is suitable for biofinishing (i.e., softening,
surface fiber removal, depilling) or fabrics and garments. Enzyme
treatment can be done before or after dyeing depending on the
desired final effect on the goods.In fabric finishing applications, the
enzyme creates an improved hand, increases softness, reduces dead
and immature cotton, removes surface fibers, and prevents pill
formation on cellulosic fabrics. (For treatment of linen and flax,
BIOTEX-PIL textile finishing enzyme is recommended.)
In denim finishing applications, the enzyme produces a superior
stonewashed look that can be varied according to the user’s
preference. A wide range of abrasion can be obtained, either with or
without stones.
In garment finishing applications, the enzyme can be used for general
biofinsihing prior to or after dyeing. Treatment after dyeing results in
partial removal of dye and softens the fabric. BIOTEX-PIL enzyme
can be used to treat chambray, twill, and heavyweight cotton.
TYPICAL CHARACTERISTICS
CMC activity : 2000 CMCU/g (minimum)
Appearance : Amber liquid
pH : 4.9-5.3
Specific gravity : 1.2
The activity of BIOTEX-PIL enzyme is expressed in Carboxymethyl
Cellulose Units (CMCU) and is detemined against an intemal
standard. The activity units from one assay method cannot be
92
compared to those from a different enzymes using the same method
are not predictive of relative performance. Assay tests are effective
only for ensuring lot-to-lot consistency.
PROCESS CONDITONS
Desizing. Proper and complete desizing is required for consistent
performance. Amylase products are recommended for the removal
of starch sizing materials. Surfactants. Non-ionic wetting agents help
enhance the performance of enzymes and should be used in
conjunction with BIOTEX-PIL enzymes.Whenever surfactants are
used in conjunction with finishing enzymes, check to ensure that
the auxiliaries are compatible.
Fig.17: Process Parameter for BIOTEX-PIL
DOSAGE GUIDELINES
BIOTEX-PIL enzyme is a concentrated product that is generally used
at low doses. It is recommended that the optimal dosage and
conditions for the desired effect be determined by small-scale
experiments.
Dosage will vary according to :
□ Type of cellulosic content
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□ Construction and compositions of fabric
□ Degree of stonewashed or biofinishing effect
□ Treatment time
□ Process parameters and auxiliaries
□ Type of equipment
The following is given as a general guide :
Type of goods Dose OWG
Fabric 1 – 2 %
Garments 0.1-1.0 %
Denim 0.5-1.0 %
ENZYME INACTIVATION
All cellulase enzymes should be inactivated after the desired washed
effect is obtained. In sufficient inactivation can result in extended
exposure of the garment to active cellulase. This unintended
exposure can cause undesirable strength loss of the garment.
BIOTEX-PIL can be inactivated by one of the following procedures.
A. Hold the bath at pH > than 9.0 and temperature > 60°C for 15
minutes.
Soda ash ( sodium carbonate) or adjustment ; or
B. Treat garments with chlorine bleach ; or
C. Add sufficient quantity of an alkaline detergent to bring the pH to >
than 9.0.
Hold at > than 60°C and pH > 9.0 for 15 minutes.
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STORAGE
When stored at temperatures of 25°C (77°F) or below, BIOTEX-PIL
retains its stated activity for at least six months. To ensure maximum
activity retention, store this product under cool conditions with the
container closed. Prolonged storage above 30°C (86°F) should be
avoided.
SAFETY & ENZYME HANDLING
Inhalation of enzyme dust and mists should be avoided. In case of
contact with the skin or eyes, promptly rinse with water for at least 15
minutes.
Packing
100Kg pvc drum, 150Kg pvc drum
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Glossary
No. Content Page
1. Pro Forma Invoice 12
2. Cost and Freight, CFR 14
3. Cost, Insurance and Freight 15
4. CIF, ASWP 16
5. Free On Board, FOB 16
6. Letter of Credit, L/C 27
7. Telegraphic Transfer, T/T 30
8. Wire Transfer, W/T 30
9. SWIFT 31
10. Country of Origin 34
11. Bill of Lading, B/L 38
12. KOTRA 44
13. KITA 47
14. Commercial Invoice, CI 32
96
Figures and Tables
No. Contents Page
1. Pro Forma Invoice 13
2. Confidential Credit Report 18
3. Letter of Credit 19 -23
4. Commercial Invoice 32
5. Packing List 34
6. Certificate of Country of Origin 35
7. Packing List Calculations 36
8. Weight and Measurement list 37
9. Bill of Lading 40 – 42
10 Quantity Comparison 79
11. Process Parameter for BIOTEX-PIL 84
97
Bibliography
Wikipedia – for glossary
Shin Sung Chemcial Co. LTD. Catalogue
KITA.org
KOTRA.co.kr
98