A STUDY ON DOCUMENTATION PROCEDURE OF EXPORT IMPORT

INDUSTRY WITH SPECIAL REFERENCE

TO TULSIDAS KHIMJI PVT LTD , INDORE

SESSION (2019-2020)
MAJOR PROJECT REPORT
Submitted in the partial fulfillment of requirement for the award of the degree of
Bachelor of Busines Administration

by
PRACHI SONI
17BBA10021

Under the guidance of

Dr. BHAKTI PARASHAR
Asst. Proffesor

Declaration
I,Prachi Soni(17BBA10021), a bonafide student of the VIT Business School, VIT
University, Bhopal, hereby declare that the Project Report submitted in partial fulfillment
of the requirements of the Degree of Bachelor of Business Administration of the VIT
University, is my original work.
Date:
Place: Bhopal
Name of the Student
(Prachi Soni)
 ACKNOWLEDGEMENT
With immense please I, PRACHI SONI presenting Major Research Project report as part of the
curriculum of ‘ Bachelor of Business Administration ’. I wish to thank all the people who gave
me unending support.

I express my profound thanks to the manager Mr. Narendra Uplawdiya,

internship guide Dr. Bhakti Parashar and all those who have directly &
indirectly guided and helped me in preparation of this internship report.

Prachi soni

COMPANY CERTIFICATE

1. INTRODUCTION
1.1 Overview
International trade is an exchange of goods and services across the countries. Trade of this kind
gives rise to the world economy. Trading globally provides customers and countries to get
exposed to the products and services of different countries which are not available in their own.
Goods or services that are sold to the global market or to the different country is an export. And
goods & services that are bought from the global market or from outside the country is an
import.
International Trade allows each and every country to participate and use their resources with
each other which increases the efficiency and also helps to increase the growth in the economy.
To make the International Trade efficient and successful, there are so many companies
established in all over the world which helps customers to get the products and services from the
other countries.
This project report is all about the procedure followed by the export import companies and to
know about the documentation of the shipment of the product. This project will let us know how
to export and import the product and services, to make export-import invoices, to know about
custom clearance, how to follow the rules and regulations during tthe shipping of product, etc.
This project will also help us to find out how Tulsidas Khimji Pvt. Ltd. make themselves sustain
in this competitive market of export & import. What strategies they follow to remain competitive
and innovative in meeting the requirement of their customers successfully.

1.2 Statement of the problem

This research will help us to know about problems faced by the foriegn trade companies and how
they overcome from the difficulties such as lack of information about foreign traders, import and
export restrictions, difficulties in payments, diversity of languages, risk and uncertainity,
transport and communication and various documents to be used.

1.3 Objective of the study

• to know the procedure of export & import
• to know what are the documents required before exporting & importing the goods
• to know about the different containers used before shipping
• to understand the link between the foreign trade and economic growth.

1.4 Limitations of the study

Some are the limitations and barriers were faced while gathering the relevant informations to
conduct the study, they are:
• time
• some information were withheld with the company to retain confidentiality.

1.5 Scope of the study

The scope this research could cover the various business problems related to the followings:
• Buying habits and patterns of the consumer
• Size and location of different markets in India as well as overseas market
• The prospects for the growth of existing companies
• Marketing capabilities of the competitors.
• Number of firms entering into this field.

1.6 Need of the study

This study is needed to know:
• about the international level of marketing and concept of foreign trade.
• about the practical issues that companies face while exporting and importing goods.
• about the customer's satisfaction from the foreign products.
• about how companies deal with the various difficulties when they export or import the
goods and services.
• about the scope of the international trade.

1.7 Significance of the study

The importance of this study is:
This research project will help us to know the procedure/processs followed by the exporters and
importers, the problems and difficulties face by the traders, and how they all deal with the
problems efficiently.
This study also emphasis on to understand the relation between the foriegn trade and the growth
of the economy.

1.8 Profile of the company

Tulsidas Khimji Pvt. Ltd. associate degree Indian provision company with a collective
utilization of worldwide network of offices and associates, and well capable of meeting the
varied wants of today’s hard-to-please business wants within the competitive markets.
It offers International Freight Forwarding, Transportation, Distribution, Insurance, Custom
Clearance, Third Party Imports and Exports and EXIM practice services. It takes pride to be a
specialist in CHA (Custom House Agent).
Capacity, Capability and property is their strength that helps them to make in progress
relationships with their customers. Their experience in Air Freights is well-tried by the very fact
that they need been associate degree IATA approved shipment agent ever since the entry of IATA
into Republic of India in 1949.
They have decades of expertise in handling varied varieties of shipment through the main
shipping lines and airlines. joined of the pioneers, they need sealed how in international
provision with a record of over one hundred twenty years and still going sturdy.
They obtain to differentiate themselves by giving the foremost reliable, versatile and price
effective solutions to their customers. A benchmarked quality, standardized processes and
operation excellence makes them win all their customers’ trust.
TK whole operated by Tulsidas Khimji personal restricted could be a powerfully established
company giving integrated provision solutions. Their network is PAN Republic of India
comprising of twelve branches covering key ports and cities.
They do believe that the keyword to the success of any business is “EXCELLENT client
SERVICE” that is their slogan once handling your shipment.
Tulsidas Khimji was established in city within the year 1895. Since its origination, it's created a
major contribution to the event of international change Republic of India through its services that
cowl the complete spectrum of provision. at first warehouses were created around city port for
the advantages of exporters and importers.
Its huge scope of services embody Air Freight Exports and Imports; Ocean Freight Exports and
Imports; Customs Clearance (Air and Sea); Consolidation; Domestic Air Freight; Door-to-Door
and specific services (International and Domestic);Project/Heavy carry Forwarding; car
Logistics; EXIM practice Services; deposition and Distribution and Marine Insurance.
Tulsidas Khimji Pvt. Ltd. (TKPL) is one among the approved Custom House Agents for
Santacruz Electronics Export processing Zone (SEEPZ). several major banks trust even these
days for handling their bullion and foreign currency shipments.

Vision of the company

To be a premium global logistics provider with a clear focus
on customer delight.
Mission of the company
Enabling our customers to race ahead of competition by
simplifying logistics.

2. REVIEW OF LITERATURE
This study is undertaken with totally different objectives associated with export and import of
products and services. there's an excellent significance of foreign trade to our indian economy. a
rustic is in a position to get exchange by commercialism and mercantilism of products and
services to different countries. So, this study of documentation procedure of export-import is
critical to grasp the event of indian economy. It is vital tool for the analysisers to travel for
literature review for conducting any research. Literature review helps scientist to urge important
data and it additionally provides some clues and hints to conduct the additional analysis or study
with relevance yhis topic. Findings and conclusions given by the past scientists helps the various
different researcher to create bound generalisations. For conducting any analysis the review of
literature can not be neglected because it fill bound gaps within the past analysis studies.
Therefore, there area unit a number of the literature reviews that gave several tips to conduct this
gift study:
Thomas A. Cook(1994): says,"One of the foremost pitfalls in a global sale and get is that the
quality of the documentation supporting the transactions. a blunder in writing system, execution,
language or range of copies can cause substantial delays in getting clearance and need further
expenditures to finish the method." This scientist thrown the sunshine on bourgeois facing
downside whereas documentation of export group action that could be a difficult method and he
additionally declared the {required|the mandatory} documents required for export group action
are unit invoice, packing list, bill of payload and export declaration. Some area the extra
documents that needed are payment instrument (letter of credit), health certificate, certificate of
origin, export/import license, camets(custom pass), certificates of insurance and import
documents. In addition to the current documents the exporters ought to even be ready to perceive
the language of the opposite countries for avoiding any mistakes throughout mercantilism and
commercialism.
Corinne campbell(2009): says,"The true price of exporting", he tried to convey the precise and
true price of mercantilism is that the price of export documentation which may be mitigated if
bourgeois is aware of what documents needed and what not. mercantilism and commercialism
documentation could be a difficult method however organizing the correct work and
documentation will create the export method easier, less complicated and drum sander. In
mercantilism and commercialism method there's forever involvement of 2 parties: one party
United Nations agency needs to urge the merchandise before payment and also the different one
is that the party that exports the products and needs to be paid among time. So, not having the
correct work and documentation will result in loss for businessperson not having the ability to
urge the merchandise and bourgeois not having the ability to urge the payment of deliveries. He
simply tried to clarify that however necessary it's for exporters and importers to be craeful
relating to their documentation method as a result of exporters must perceive the varied totally
different document that varies from country to country and a silly mistake will be harmful for the
corporate. It would be a complete waste of your time furthermore as cash for inquiring the export
procedure while not having the right information regarding the work and documentation. And he
principally advised that coaching and developing your workers is extremely necessary before
creating them enter into this. Staffs and workers should run coaching on the fundamental
provision, finance furthermore as cultural problems before influencing them to have interaction
during this activities as international trade involves high level of risk. Therefore, having
information of avoiding pitfalls is that the solely key to success.

3.RESEARCH METHODOLOGY
This report is composed of the information collected primary and secondary sourcse. And they
are collected from:
Primary Sources-
• Interviews
 • formal & informal discussion.
Secondary Sources-
• TK's annual report
• various brochures
• invoice
• shipping bills
• internet.

3.1 Research Design

The primary objective of this study is to get the fresh data and knowledge of export and import
process of company so there is a need to conduct Exploratory Reseach Design as it is not at
possible to get the exact response and information from respondants by framing the structured or
formal questionnaire or by following formal method.

3.2 Research Tools Used

• In Primary data collection, the qualitative research adopted by asking the open ended
questions from the respondants and through interviews.
• In secondary data collection, the companies brochures, invoices, annual reports were used
which is an internal reseach and through external research the internet, websites,books
and references used.

4. Data Analysis and Interpretation

• to know what is the procedure of export & import

Export Procedure:
step 1- Having an export order : Processing of export order starts with the receipt of associate
export order. The export order, merely declared, implies that there ought to be export agreement
within the variety of a document, between the exporter and importer before the exporter truly
starts manufacturing or procuring merchandise for cargo. usually associate degree export order
could take the shape of proforma invoice or commercial instrument or letter of credit.
step 2- Proforma generation: After receivng the orders from the other parties or from importer,
the exporter is now ready to generate proforma invoice or any commercial instrument or letter of
credit.
step 3- Manufacturing and procuring goods: Exporter starts manufacturing or collecting
goods to export it to their customers. For procuring or manufacturing the products, exporters
need funds to move to the further process so under the export credit subsidy(scheme) provided
by Reserve Bank of India, exporter approaches the bank to receive the pre-shipment credit.
step 4- Goods readiness & documentation: In this step, goods get ready to export, so here
exporter needs to start the procedure for the shipment of goods to its final destination and also
needs to begin its paperwork and documentation process. Documents which are necessary such
as bill of lading, letter of credit, packing list, custom invoice, etc.
Step 5- Pre-shipment inspection: According to the Indian Government authorities, there are
number of products which require quality cetification i.e, whether the goods which are going to
be export to other countries are qualitative or not. So Indian custom authority requires the
inspection certificate which is issued by the designated authority and then after they allow to
send the goods.
step 6- Goods removal from works: After getting certified by the Indian custom authority
goods get ready for shipment.
step 7- Appointment of clearing & forwarding agents: Once the process of inspection done,
the company hires the C&F agents who then performs the number of functions on behalf of the
exporter and gets the work done.
Following are the main functions performed by the C&F agents are-
• packing, labelling and marking of the consignment
• makes arrangement for the transportation to the port, shipment overseas
• custom clearance of cargoes
step 8- Goods to Port shipment: After tall the inspection and the custom clearance, goods get
packed, labelled and properly marked for the safe tranportation. The export department reserves
the space for the goods which are about to sent to the importer. These all are the responsibilities
of the C&F agents to take care of goods and the shipping company issues a document called
Shipping Order, acts as a proof for the space reservation.
step 9- Document forwarding: The C&F agents need to submit ceratin documents to the
custom house inorder to get permission or custom clearance & they are: Shipping bill, Contract
form, letter of credit, Commercial invoice,Inspection certificate, Packing list.
step 10- Certificate of origin: After recieving the documents from C&F agents, the exporter
applies for the certificate of origin to the Chamber of Commerce.
step 11- Dispatch of shipment advice to the importer: After performing or completing all the
formalities, exporter sends notification to the importer regarding the shipment of the product
such as the date of shipment, time of arrival of the product, destination port of the importer along
with certain documents- bill of lading, commercial invoice, packing list, custom invoice.
step 12- Submission of documents to bank: Now exporter releases some of the document to
his/her bank to get the payment due to the importer & they are: Commercial invoice, certificate
of origin, packing list, letter of credit, bill of lading, bill of exchange, bank certification,
commercial invoice.
step 13- Claiming export incentives: Once the processing of export order completed, the
exporter claims for his/her incentives.

Import Procedure:
step 1- Obtaining import license and quota: When the importer sends the request to exporter
to export the goods in their country, the importer or a firm cannot import goods into their country
without the valid import licence. So they apply to the authorities to get the specific or general
license.
step 2- Obtaining foreign exchange: After getting the import license, now importers have to
make arrangements for foreign exchange currency as they have to make payments to their
exporter of other country.
step 3- Placing an order: When importer gets the necesary license and quota and forex
currencies, now importer place the order which is called Indent. It is an order placed by an
importer to the exporter to supply certain kinds of goods.
step 4- Despatching letter of credit: As importer & exporter are usually not acquainted with
each other because of different countries so the exporter wants to be sure about the
creditworthiness of the importer before shipping goods that he/she will make due payment,
therefore he asks importer to send a letter of credit.
step 5- Obtaining necessary documents: After sending letter of credit to the exporter, the
exporter sends the goods for shipping and he also sends the Advice Note(document) to the
importer immediately which entails that the goods have been dispatched.
step 6- Customs formalities and clearing of goods: After receiving the documents and title of
goods, the importer needs to take the ownership of the goods and for that his only concern is to
get all the formalities done such as to obtain the endorsement for delivery, to pay dock dues and
obtain port dues receipt, filling up the Bill of Entry form, to pay custom duty and import duty.
And also importer can appoint C&F agents who performs all this duties on behalf of the
importer.
 step 7- Making the payments: After clearing all the necessary formalities, the importer is
expected to make the payments to exporter and the mode and time of payment already decided or
mutually agreed by both the parties.
step 8- Closing the transaction: The last stage of import procedure where it closes the
transaction if the goods are satisfied and according to the specification of the importer but if he is
not satisfied with the quality of goods or if goods get damage during transportation, he claims
compensation from insurance company and then insurance company pay him the compensation.

• to know what are the documents required for exporting & importing the
goods

Essential documents required in export of goods

• Letter of Credit: A letter of credit is issued by the one bank to another bank mainly of
another country. It serve as a guarantee for payment to specified person. Its a written
commitment to pay by the importers' bank on behalf of importer to the exporters' bank.
• Performa invoice: It is a confirmed Purchase Order which is generally raised by the
seller to the buyer where both the parties are agreed upon the details such as the cost of
the product. It raised when the product is ready for dispatch.
• Packing list: Its a document that includes relevant of all the contents of package. It let
the customer, tranpsort agencies and government authorities to know about the package
so that they handle it accordingly,
• Commercial Invoice: It is a general document prepared by the seller or the exporter
which contains the information such as the names, address of exporter and importer, date,
price of goods, quantity of goods.
• Certificate of origin: A certificate of origin is a document which states in which country
the product has been produced and it also contains information regarding the destination
and export country.
• Shipping bill/ Bill of entry: A document which is generally required by the customs
authority for the clearance of goods.
• Bills of exchange: It as a written agreement issued by the one party (drawer) to the
another party (drawee) to pay certain amount of money within the due date.
• Inspection certificate: A document certifies that the merchandise are in a good condition
and qualitative. It is issued by an independent inspection company.
• Insurance certificate: A Certificate of Insurance generally issued by the insurance
company. Contractors usually requires the COI which grants the protection of goods
 against the damage or theft.
• Consular invoice: This document certifies the shioment of goods and contains the
information regarding consignor, consignee and value of shipment.
• Warranty of title: It is a kind of guarantee given by the seller to the buyer that the seller
has only the right to transfer the ownership of the goods and no one else has.
• Mate's receipt: Mate's receipt issued by the commanding officer of the ship in which the
exporter loaded the cargoes. So it acts as a evidence that the cargo is safely transmitted in
the vessel.
• Bill of lading: It is a legal document issued by a carrier which includes the information
regarding the goods such as the type,quantity, destination of the goods to the shipper.
• Airway bill: A document or a receipt issued by the airlines for goods and an evidence of
the contract of the carriage.

Steps involved in Export transaction

Step 1- If there is a case of first time exporter and importer so there is need to apply to the
Director General Of Foreign Trade (DGFT) regional office to get IEC number.
Step 2- Now, in the next step the exporters need to register with their concerned exporter
promotional council so that they can avail various benefits given by government. They also have
to get registered themselves with sales tax office.
Step 3- The exporter now can go for procuring the orders from their customers and in this step
the importer and exporter agreed upon the terms and conditions of the contract such as the freight
charges, pricing, documentation, etc.
Step 4- Now, the exporters have procured the orders so they start collecting and assembling the
resources from manufacturers.
Step 5- In this step, the exporter tries to get the certificate conforming the qualitative goods from
inspector of quality control and make arrangements accordingly.
Step 6- Here the exporter dispatched the goods to ports or airports for transmitting.
Step 7- After dispatching the goods, exporter applies to an insurance company for an insurance
cover.
Step 8- Now for storing and holding the goods, the exporter contacts to the C&F agent. And here
required the shipping bill for shipment which is presented by forwarding agent.
Step 9- In this step, the goods are safely loaded in the ship and a receipt issued by the captain of
the ship which is called Mates Receipt.
Step 10- Superintendent ask for port charges from exporters/C&F agents.
Step 11- After paying the port/airport charges, the official agent of airline or seaport gives the
Bill of Lading to C&F agents or the exporter.
Step 12- Now, exporter applies to Chamber of Commission inorder to get the certificate of
origin.
Step 13- Exporter now sends the details about the goods to the importers such as the date of
shipment, name of vessel, etc.
Step 14- Exporter presents all the details and relevant documents to his bank within 21 days of
shipment which scrutinizes the documents against original Letter of Credit.
Step 15- In the final step, exporters sends all these documents to the bank of importer to get the
payment within the due date.

• to know what are the different container used for shipment

Types of container used in shipment

• High Cube Container

Use:Highcube containers are useful to carry all kinds of cargoes mainly dry cargoes. However,
this kind of container are particulary designed to carry voluminous cargoes, for transporting
lights and for overheight cargoes (maximum of 2.70 m tall).

• Reefers

Use:Reefer container can also be called refrigerator container as it is fitted with the refrigeration
unit in the container which is connected with electrical power supply. This container is useful to
transport goods which require certain temperature controlled conditions for transmitting products
such as fruits, vegetables, meat and dairy products.

• Dry container

Use: This dry container is very useful to carry the ingredients such as cereals, grains, bread
dough, coffee. This container is specially designed to transfer such goods and it is very effecient
and effective.

• Flat Racks

Uses: Flat rack containers mainly suitable for handling heavy cargoes and heavy loads which
require more space and the loads can be put into it from the top or sides, such as heavy
machinery and pipes. They are manufactured from steel and usually are in 20' and 40' sizes.
Two kinds of containers are designed under this- Collapsible and non-collapsible which can be
with or without the walls.

• Open tops container

Use: Container like Open top are useful for loading heavy or overweighted cargo and over
lengthy cargoes. They are usually open from its top and packing & unpacking is easy by crane. It
makes easy or flexible to load and unload the heavy cargoes with its open end doors.

5.Results & Discussions

5.1 Findings & inferences
• The export-import company can make the paperwork & documentation easier by
categorising the importance of the documents.
• Many documents required for the processing of exports & imports but only certain
number of documents play vital role in the company.
• Export-import companies can easily win customers trust by delivering their goods or
products safely within time.
• Sometimes preparing and arranging this lengthy list of documentation delays the process
 of export & import.
• The export manager and the staffs working under him requires an effective training in
this field as international trade involves high level of risk.
• A minor mistake during the documentation and export-import procedure can lead to huge
loss to the company.
• International trade of exporting & importing of goods from one country to another has a
major contribution towards the growth of an economy.

5.2 Suggestions & recommendations

• For improving the performance and operation at workplace, company should try to create
healthy and positive environment to make their employees happy.
• According to my observation, for some people the work environment is so bad that
employees dont feel motivated which directly affects the performance of the company as
the employees dont contribute their 100%.
• Company should take care of their employees and shouldn't neglect them if they want the
productivity in the organisation.
• Organisation should train their employees time to time to enhance their skills as
paperwork and documentation for export & import of goods requires high skill set.
• Company should only consider the documents which are relevant and most important as
there are the requirements of large number of documents and among them only certain
are important. So, there will be no delay in transporting the goods.

5.3 Conclusion
This study was conducted to understand the procedure and documentation of export & import in
Tulsidas Khimji Pvt. Ltd. From the analysis it is found that the company has to go through the
various procedures and documentation and which is not an easy task. Documentation and
paperwork prior to the export & import of goods are complicated task but this company is
existing in this market since 112 years and competing. The performance of the company is
satisfactory as Tulsidas Khimji has certified as AEO(Authorised Economic Operator) by Central
Board of Excise and Customs. Along with this TK has been an IATA approved cargo agent, it is
an oldest and leading Custom House Agents with an experience of 112 years.
So, there is a sign for TKPL to have good future prospects of growth.