DAILY CLASS REPORT

FREIGHT RATE IN DIFFERENT COUNTRY by Manish

From Kandla To Jebal Ali(Dubai) : 20' USD236 & 40' USD356
From Kandla to Port Luice : 20' USD1256

From Mumbai to Jebal Ali : 20' USD156 & 40' USD206
From Mumbai to Port Luice : 20' USD1156
FROM : -OASIS SHIPPING & LOGISTICS PVT. LTD.Laxminarayan Chamber.Ground Floor, plot no.140. sector-1/A. GANDHIDHAM. Kutch (GUJARAT)TELE no.02836 232729/30 FAX no.02836 228554Cell # +91 98985 14347
short presntation of SGS by sheetal
four types of document :-
1. commercial document
2. regulatory document
3. transport document
4. document required by the importer
1,commercial document included L/C , invoice, paking list
2.regulatory document included shipping bill, export-import licence, GSP, certificate of origin, duty drawback
3. transport document included bill of lading, airway bill, lorry receipt, railway receiptinvoices are 4 types:-
1. commercial invoice
2. custom invoice
3. legalised invoice
4. counsler invoice types of bill of lading:-
1. clean bill of lading
2. claused bill of lading
3. straight bill of lading
4. multimodel bill of lading
MARINE INSURANCE:- three types of marine insurance are
1. institute classification caluse (a),(b), (c) two types of insurance:-
1. consignmen twise
2. open cover

Excise clearance:- by Reena
it is preliminary the revenue clearance.there is two types of goods
1. excisable goods
2. nonexcisable goods how this particular clearance is achived:-
1. pay excise duty
2.proof of export
3.claim the exemption problemin this:-
time is major problem
another method is
export under bond:-
prepare bank guarantee towards the tax authorities.the important invoice of excise clearance is ARE-1 PROOF OF EXPORT:- stamped by the the custom inspector in the port of loading
2.VAT:- (value added tax) when you export the goods than you have to submmited the FORM-H exemption:-
OCTORI:- FILL FORM -N PRESHIPPMENT INSPECTION AND QUALITY CONTROL:-
QUALITY IS A SYSTEM ,
QUALITY IS ARESULT

INCO Terms: BY CHINKI ON 15 SEPT
The INCOTERMS (International Commercial Terms) is a universally recognized set of definition of international trade terms, such as FOB, CFR & CIF, developed by the International Chamber of Commerce (ICC) in Paris, France. It defines the trade contract responsibilities and liabilities between buyer and seller.
Modes of payment in exports (payment terms):
The commonly used methods of payment are:
1. Advance payment.
2. Documents against cash.
3. Documents against acceptance.
4. Letter of credit.
5. Consignment sales.
Advance payment:
Of all the method of payment, advance payment is the method in which seller has minimum risk. The exporter’s financial strength increases if the buyer is ready to pay in advance. The buyer runs a risk of non-delivery or delayed delivery, will pay in advance only to an established exporter or to a regular client.
Documents against cash:
In this method the buyer’s bank and shipping company are also involved. When seller dispatches the goods through the shipping line, the shipping company issues a bill of lading (B/L); bill of lading is an undertaking by the shipping company to transport the material to the destination and hand it over to the consignee against original documents. Then the seller sends the original documents to the buyer’s bank with the request to transmit the documents to the buyer on full payment. By producing the original B/L the consignee can take the delivery of goods from the shipping company.
Documents against acceptance:
The only difference between this and the previous method is that the seller gets the advantage of credit period. The seller can get the documents from the bank against a written declaration of making the payment till a certain date instead of paying cash at sight.
Letter of credit (L/C):
L/C is an undertaking by the buyer’s bank to make the payment to the beneficiary upon compliance of certain terms and conditions.

UCP 600 BY MANISH
ARTICLE CONTENTS
Article 1 Application of UCP
Article 2 Definitions
Article 3 Interpretations
Article 4 Credits v. Contracts
Article 5 Documents v. Goods, Services or Performance
Article6 Availability, Expiry Date and Place for Presentation
Article 7 Issuing Bank Undertaking Article 8 Confirming Bank Undertaking
Article 9 Advising of Credits and Amendments
Article 10 Amendments 10
Article 11 Teletransmitted and Pre-Advised Credits and Amendments
Article12 Nomination
Article 13 Bank-to-Bank Reimbursement Arrangements
Article 14 Standard for Examination of Documents
Article 15 Complying Presentation
Article 16 Discrepant Documents, Waiver and Notice
Article 17 Original Documents and Copies
Article 18 Commercial Invoice
Article 19 Transport Document Covering at Least Two Different Modes of Transport
Article 20 Bill of Lading Article21 Non-Negotiable Sea Waybill
Article 22 Charter Party Bill of Lading
Article 23 Air Transport Document
Article 24 Road, Rail or Inland Waterway Transport Documents
Article 25 Courier Receipt, Post Receipt or Certificate of Posting
Article 26 "On Deck", "Shipper's Load and Count", “Said by Shipper to Contain” and Charges Additional to Freight
Article 27 Clean Transport Document
Article 28 Insurance Document and Coverage
Article 29 Extension of Expiry Date or Last Day for Presentation
Article 30 Tolerance in Credit Amount, Quantity and Unit Prices
Article 31 Partial Drawings or Shipments
Article 32 Instalment Drawings or Shipments
Article 33 Hours of Presentation
Article 34 Disclaimer on Effectiveness of Documents
Article 35 Disclaimer on Transmission and Translation
Article 36 Force Majeure
Article 37 Disclaimer for Acts of an Instructed Party
Article 38 Transferable Credits
Article 39 Assignment of Proceeds

Export contract: BY MEGHA NAYYAR ON 30 SEPT
A contract is any agreement that has legal binding on the parties involved. There are certain, peculiar characteristics of international trade contract which are not present in those for sales of goods in the domestic market. For example, they may agree to adopt the Law of either country, buyer’s or seller’s and any other specifications.
In order to avoid disputes, it is necessary to enter into an export contract with the overseas buyer. For this purpose, export contract should be carefully drafted incorporating comprehensive but in precise terms, all relevant and important conditions of the trade deal.
The different aspects covered under an export contract are as under:
Names and addresses of the buyer and the seller
Name and address of the consignee
Product, Standards and Specifications
Price (with INCO terms)
Quantity
Inspection
Total Value of Contract
Terms of Delivery
Taxes, Duties and Charges
Period of Shipment
Credit period
Tolerance
Packing, Labeling and Marking
Terms of Payment-- Amount/Mode & Currency
Licenses and Permits
Insurance
Documentary Requirements
Arbitration clause
Proforma invoice:
Proforma invoice is another option that can be used by regular trading parties instead of the contract. Proforma invoice is a non-negotiable document issued by the seller. Proforma invoice in itself does not carry any commercial meaning but it is the basis for all other commercial documents.
Opening of L/C:
After the various terms and conditions are finalized among the two trading parties, the buyer next applies for opening up of an L/C. Once the L/C is issued the next step for the seller is to process the order.
Processing of export order:
The steps involved in processing of an export order are:
· Sourcing: Sourcing is getting the right quality material at right place at right time. It can be internal as well as external. For a merchant exporter sourcing is external while in the case of a manufacturer exporter sourcing is internal. In case of internal sourcing a manufacturer exporter has to finalize the last date of dispatch of material from the factory, for this purpose he has to use backward calculation method from the last date of shipment.
· Dispatch from the factory: After the product is produced it is ready shipment. An exporter has the facility to stuff the cargo in the factory premises only. For that purpose the CHA applies to the customs dept for a container to be sent in the factory for stuffing.
While stuffing of cargo the following steps are covered. Firstly the container and the product is checked by the excise officer and the quality inspector. Then after the goods are loaded in to the container, the container is locked and sealed by the one time excise seal.

PRESENTATION OF L/C BY SANGEETA ON 29 SEPT

packing list

commercial invoice

shipping certificate

insurance certificate

TOPICS COVERED ON 6th OCTUBER
Sharing of training knowledge by way of presentation by:
Ø SUSHIL (30)
Ø MEGHA (04)
ICD (Inland Container Deport) BY SUSHIL
MEANING
ICD is short term for Inland Container depot. This is related to deals in India specifically. The ICD is usually a place where there is no sea port & located in different locations in the country as designated by Indian Customs.Most of them are well connected by rail & serve the importers/exporters who are located away from the seaports.It is a way of decongesting the main ports where containers are kept for customs clearance & inspection.
FUNCTIONs OF ICDs/CFSs
The primary functions of ICD/CFS may be summed up as under:
a. Receipt and dispatch/delivery of cargo.
b. Stuffing and stripping of containers.
c. Transit operations by rail/road to and from serving ports.
d. Customs clearance.
e. Consolidation and desegregation of LCL cargo.
f. Temporary storage of cargo and containers.
g. Reworking of containers.
h. Maintenance and repair of container units.

THE OPERATIONS OF THE ICDS/CFSS REVOLVE AROUND THE FOLLOWING CENTRES OF ACTIVITY:-
1. Rail Siding (in case of a rail based terminal): The place where container trains are received, dispatched and handled in a terminal. Similarly, the containers are loaded on and unloaded from rail wagons at the siding through overhead cranes and / or other lifting equipments.
2. Container Yard : Container yard occupies the largest area in the ICD.CFS. It is stacking area were the export containers are aggregated prior to dispatch to port, import containers are stored till Customs clearance and where empties await onward movement. Likewise, some stacking areas are earmarked for keeping special containers such as refrigerated, hazardous, overweight/over-length, etc.
3. Warehouse: A covered space/shed where export cargo is received and import cargo stored/delivered; containers are stuffed/stripped or reworked; LCL exports are consolidated and import LCLs are unpacked; and cargo is physically examined by Customs. Export and import consignments are generally handled either at separate areas in a warehouse or in different nominated warehouses/sheds.
4. Gate Complex: The gate complex regulates the entry and exist of road vehicles carrying cargo and containers through the terminal. It is place where documentation, security and container inspection procedures are undertaken.

BENEFITS OF ICDs/CFSs
The benefits as envisaged from an ICD/CFS are as follows :-
The main benefits from ICDs/CFSs
1. Concentration points for long distance cargoes and its unitisation.
2. Service as a transit facility.
3. Customs clearance facility available near the centres of production and consumption
4. Reduced level of demurrage and pilferage.
5. No Customs required at gateway ports.
6. Issuance of through bill of lading by shipping lines, hereby resuming full liability of shipments.
7. Reduced overall level of empty container movement.
8. Competitive transport cost.
9. Reduced inventory cost.
10. Increased trade flows.


DISCREPANCIES IN L/C BY MEGHA
The dictionary meaning of discrepancy is a difference between conflicting facts or claims or opinions and L/C that (1) does not comply with the terms and conditions under which it was established, (2) is without a required item of information, or (3) the information provided is inconsistent with the associated documents. The issuing bank of a discrepancy L/C is not obliged to pay its beneficiary and (if it is a confirmed L/C) nor is the confirming bank. Such L/Cs are normally referred back to the buyer or importer (the 'account party') for instructions.
TYPES OF DISCREPANCIES
1. Bill of exchange
In bills of exchange mainly following types of discrepancy may occur:
· L/C reference no. may not match( mainly copy paste problem)
· Tenure may not match
· Swift code may not match
2. Invoice
As far as invoice is concerned following should be considered
· No.s to be marked as original
· No.s to be marked as copy
· Merchandise and description of goods
3. Insurance
· Insurance should be done in the currency of L/C only
· Date should be on or before
· The date of L/C
· Insurance policy should not be covered with insurance certificate
· Insurance amount is always 10% more than the actual amount
4. Transport
5. Bill of lading
· B/L should be clean
· Port of destination should not differ