A Study On Export and Import Procedures in Arem Logistics, Coimbatore

SERUM INSTITUTE OF INDIA LTD.
A STUDY ON EXPORT AND IMPORT PROCEDURES IN AREM

LOGISTICS,
COIMBATORE
PROJECT REPORT
Submitted by
ENIYAN.T
Register No: 713318631012
In partial fulfilment for the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
in
DEPARTMENT OF MANAGEMENT STUDIES
SNS COLLEGE OF ENGINEERING
COIMBATORE – 641107
APRIL 2020
1
SNS COLLEGE OF ENGINEERING
COIMBATORE – 641107
Department of Management Studies
PROJECT REPORT
APRIL 2020
This is to certify that the report entitled
A STUDY ON EXPORT AND IMPORT PROCEDURES IN AREM LOGISTICS,

COIMBATORE
Is the bonafide record of the project Report done by
ENIYAN.T
of
Master of Business Administration
During the year 2019 – 2020
Submitted for the viva-voice examination held on
---------------------- --------------------------
Project Guide Head of the Department
------------------------- ------------------------
Internal Examiner External Examiner
2
DECLARATION
I ENIYAN.T, declare that “A STUDY ON EXPORT AND IMPORT PROCEDURES IN

AREM LOGISTICS, COIMBATORE”. Under the guidance of Dr.G.Mageshwaran, Associate
Professor, Department of Management Studies, SNS College of Engineering, Coimbatore, has been
submitted in partial fulfilment of the requirement for the award of the degree of Master of Business
Administration.
I also declare that this is my own work and has not been submitted for the award of any other
degree/diploma or other titles of any other universities.
Place: Coimbatore
Date: Signature of the Candidate
ENIYAN.T
I certify that the declaration made above by the candidate is true.
Signature of the Guide
(Dr.G.MAGESHWARAN)
3
ACKNOWLEDGEMENT
I would like to acknowledge the immense help of all those who contributed with their valuable
suggestion and timely assistance to complete this work. I thank the almighty god for the blessings that
have been showered upon me to complete the internship training report successfully.
I extend my heart-felt to management of SNS Institutions Dr.S.N.Subbramanian, Chairman,

and Dr. S. NalinVimal Kumar., Technical Director, for providing us with all sorts of supports in
completion of this internship training report.
I sincerely thank our principal Dr.S. Charles, SNS College of Engineering for constant
encouragement and support to undergo the internship training report.
I am highly grateful to Dr. R. Anitha, Professor & Head, Department of Management Studies.,
SNS College of Engineering, Coimbatore, for valuable suggestions and guidance throughout the
course of the internship training report .
I am highly grateful to Dr. G. Mageshwaran, Associate Professor., Department of

Management Studies., SNS College of Engineering, Coimbatore, for his valuable suggestions and
guidance throughout the course of the internship training report.
I am very thankful to my company guide Mr. Vinothkumar, Operation Manager in Arem

Logistics, for his support throughout my project report.
I express my deep sense of gratitude to the company staffs and other people for their guidance
and support provided to complete this project work successfully.
(ENIYAN.T)
4
INDEX
S.No TITLE Pg.No
1. CERTIFICATE 2
2. ACKNOWLEDGEMENT 3
3. EXECUTIVE SUMMARY 4
4. OBJECTIVE OF PROJECT 5
5. RESEARCH MEATHODOLOGY 6
6. COMPANY PROFILE 7
 Introduction
 Arem logistic
 Organisational chart
7. IMPORT DOCUMENTATION 11
8. IMPORT PROCEDURE FOLLOWED BY 15

AREM LOGISTICS
9. EXPORT DOCUMENTATION 17
10. EXPORT PROCEDURE FOLLOWED IN 20

5
AREM LOGISTICS
11. EXPORT CUSTOM CLEARANCE 23
PROCEDURE
12. EXPORT INCENTIVE SCHEMES 25
 Export Promotion Capital Goods
Scheme
 Duty Exemption Schemes
 Duty Remission Schemes
13. INCO TERMS 31
14. IMPORT PROCEDURE IN DTA 34

15. SEZ 36
16. EOU 40
17. IMPORT PROCEDURE OF SEZ/EOU 44
18. EXPORT PROCEDURE OF SEZ/EOU 49
19. SEZ vs EOU 50
20. CONCLUSION 51
21. LIMITATIONS 52
22. BIBLIOGRAPHY 53
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ACKNOWLEDGEMENT
I would like to acknowledge the immense help of all those who contributed with their valuable
suggestion and timely assistance to complete this work. I thank the almighty god for the blessings that
have been showered upon me to complete the internship training report successfully.
I extend my heart-felt to management of SNS Institutions Dr.S.N.Subbramanian, Chairman,

and Dr. S. NalinVimal Kumar., Technical Director, for providing us with all sorts of supports in
completion of this internship training report.
I sincerely thank our principal Dr.S. Charles, SNS College of Engineering for constant
encouragement and support to undergo the internship training report.
I am highly grateful to Dr. R. Anitha, Professor & Head, Department of Management Studies.,
SNS College of Engineering, Coimbatore, for valuable suggestions and guidance throughout the
course of the internship training report .
I am highly grateful to Dr. G. Mageshwaran, Associate Professor., Department of

Management Studies., SNS College of Engineering, Coimbatore, for his valuable suggestions and
guidance throughout the course of the internship training report.
I am very thankful to my company guide Mr. Vinothkumar, Operation Manager in Arem

Logistics, for his support throughout my project report.
I express my deep sense of gratitude to the company staffs and other people for their guidance
and support provided to complete this project work successfully.
(ENIYAN.T)
7
EXECUTIVE SUMMARY
.
The Arem Group of Companies has grown and diversified into a multifaceted
organization with a nationwide network of offices, extensive manufacturing facilities,
full-fledged research and development capabilities. A market leader of mechanical
seals for industrial use, the group also exports industrial valves and pneumatic
actuators to various parts of the world including Europe,Arab and USA and has now
extended its activities to include automated control systems for process industries,
prime factors in the group’s growth and success have been its emphasis on quality,
innovation, productivity and customer support.
During my project and internship with Arem logistics. I was trained in various
aspects related to export clearance, documentation, and procedures, right from the
pre-shipment documentation stage to post shipment documentation, formalities
involved in realization of export proceeds, procedures relating to L/C consignment.
Daily functions were carefully observed. Different schemes involved in exports and
imports were studied in details.
Another aspect I covered in this report is about the Export Oriented Units and the
Special Economic Zone, and the various aspects related to the both concepts and
procedures carried out in both.
It was a great experience understanding and learning the above mentioned things.
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OBJECTIVE OF THE STUDY
My objectives for the given project were:-
 To study the Import procedure of Arem logistics.
 To study the Export procedure of Arem logistics.
 To study different Incentives, Assistance and Prospect of Arem logistics.
 To learn the environment of an esteemed organization involve in Import and

Export Operation.
 To know the operation of 100% Export Oriented Unit (EOU)
 To learn the working procedure of Special Economic Zone (SEZ)
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RESEARCH MEATHODOLOGY (DATA COLLECTION

MEATHOD)
Research methodology is a way to systematically solve the research problem.

It may be understood as a science of studying now research is done systematically. In
that various steps, those are generally adopted by a researcher in studying his problem
along with the logic behind them.
Data collection is important step in any project and success of any project will
be largely depend upon how much accurate you will be able to collect and how much
time, money and effort will be required to collect that necessary data, this is also
important step.
Data collection plays an important role in research work. Without proper data
available for analysis you cannot do the research work accurately. There are two types
of data collection methods available.
A. PRIMARY SOURCES: - The primary data was collected by interaction with the
senior executives and HOD of the International Marketing.
B. SECONDARY SOURCES:- The secondary data was collected by various means

such as:-
 Company Records.
 Magazines.
 Websites such as:- www.aremlogistics.com.
www.google.com
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COMPANY PROFILE
Established in the year 2008, at Coimbatore, Tamil Nadu, India, we “Arem Logistics,” are one of the
leading service providers in the Logistics Field. Here, our expertise lies in offering customers
complete Logistic Solutions that can be offered by us using Air, Sea and Road mediums. The range of
services we offer comprise Supply Chain Management Services, Warehousing Services, Freight
Forwarding, Air Freight Services, Sea Freight Services, Custom Clearance etc.
Our business operations are led by Mr. Rangasamy Manogaran, who has with him rich experience in
our industry sector. His visionary business approach as well as service support provided by
experienced industry professionals assist us in flawlessly understanding and handling the specific
Cargo movement service demands of our customers. Further, our in-depth process knowledge also
allows us to offer our customers customized Customs Clearing & Forwarding solutions with services
offered for Total Cargo Management.
Today, our consistent business approach and services of professional & skilled team of managers,
sales personnel as well as other allied work force assists us in successfully meeting growing Logistics
demands of our clients. Further, our dedicated team approach also ensures that the services offered
by us meet international standards as well as the exact directives provided by the clients. Other than
this, Our capability to ensure Departure and Arrival of consignments at desired destination in best
time as well as at most competitive costs has also earned us long list of quality conscious clients all
over the world.
Solutions Offered
Backed by rich industry experience of our proficient work force as well as support provided by well
equipped infrastructure, we have been able to successfully offer world class Logistic & Cargo
solutions to clients based around the globe. With service standards meeting those offered
internationally, our services are highly reliable in nature as well as are handled with utmost care &
professionalism. Further, while delivering the services, we also ensure that mutually beneficial
relationships are shared with our customers.
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Cargo Handling Services :
Supply Chain Management Services
Freight Forwarding
Shipping Services
Custom Clearance
Warehousing Services
Air Freight Services
Sea Freight Services
Air Cargo Services
Our Working Principle
We have high respect for both value, time and money invested by our customers. This can be seen
from our well defined business approach that is aimed at providing our clients with best services
promptly as demanded by them.
We also strongly believe that for rendering efficient services to clients, we have to closely follow a
step by step procedure which in turn is strategically planned as well as is stringently implemented.
Thus, here we take into consideration each aspect of process in detail, ensuring customized & safe
delivery of the cargo/consignment to our clients.
Our Team
We have with us services of well trained & highly experienced team from the industry comprising
managers, sales & allied staff. They continuously work towards improving & upgrading freight
forwarding and logistics services offered from our end. Further, our team also has excellent track
record towards addressing varied requirements of our clients.
For ensuring smooth business operations, our business operations are divided under different
departments that are looked after separate teams. This ensures efficient handling of the
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consignment. Other than this, our team also has desired knowledge of all transportation processes,
thus allowing us to deliver exceptional quality services.
Our team comprises :
Field officers
Packaging experts
Logistic experts
Custom clearing agents
Experienced drivers
Quality Parameters
We are well committed towards achieving total quality management for which our team of industry
professionals works dedicatedly towards achieving the defined goals. Working in conjunction with
valued customers, our focused approach on meeting their specific logistic requirements is also based
on our specialized business knowledge, assisting us in meeting emerging changes in field of
Transport, Distribution and Related logistic based service support.
Right from ensuring safety of cargo which is of highest priority to us, we also offer customers
unrivaled services keeping in view specific quality parameters of the demanding customers. These
business principals have assisted us in business relationship with our clients based worldwide.
Infrastructure Support
We also have with us well established infrastructure facilities that assist us in ensuring better
handling of Cargo, thus meeting the quality service demands of our clients. Further, for meeting
emerging changes in the logistics and cargo field, we also keep on updating the available
infrastructure facilities by utilizing advanced processes as well as by adapting latest process
technology in involved operations.
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Our modern infrastructure comprise of :
Fleet of vehicles
Open top/ flat-rack containers for cargo services
Equipment like cranes & forklifts for purpose of loading/unloading of cargo
Office strategically located in close proximity to international/national airports
Efficient & well defined management system, thus enabling in ensuring smooth functioning of the
business operations
Other than this, our strong networking with major logistics agents/service providers also enables us
to offer these services at very competitive rates.
Client Satisfaction
Holding rich expertise in the field of Cargo movement & Logistics, our expertise in successfully
undertaking as well as executing the complete shipping, freight forwarding, custom clearance, cargo
handling service, container service and international freight forwarding services has helped us to
successfully meet the specific requirements of our customers. Further, our client centric business
approach also ensures that we render these services with utmost proficiency & responsibility, thus
delivering the consignment of clients within committed time frame and in safe manner.
Our Strengths
Some of our service strengths that distinguish us from our competitors include :
More than 20 yrs experience in the field
Served more than 100 satisfied customers
Possess better team to serve
Reasonable pricing
Better reporting & quick interaction o the client
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ORGANIZATIONAL CHART
Mr. Rangasamy Manogaran (ManagingDirector)
Mr. Dave Mr.Radhakrishnan Mr.Ravindranathan Mr. Vinoth kumar

(Reg Mngr) (G.M) (A.G.M) (Operations)
Mr.Iyer (Secretary)
Mrs.Joshi Mr.Debta Mrs.Unikrishanan Mr.Vamanan Mr.N.J.Bandrawalla
(Service tax)
Mr. Nair
Mr.Bhandari Mr.V.Kulkarni Mr.Debta Mr.Yethekar

(SEZ) (EOU)
Mr.Pillai Mr.Poduval Mrs.Joshi
Mr.Sathe Mrs.Bahirat
Mr.Chaudhari Mr.Rajesh Poduval
Mr.P.Kulkarni
Mr.Salunke
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IMPORT
IMPORT – An import is any good or service brought in from one country to another
country in a legitimate fashion, typically for use in trade. It is a good that is brought in
from another country for sale.
The buyer of such goods and services is

referred to an "importer" who is based in the country of import whereas the overseas-
based seller is referred to as an "exporter".
IMPORT DOCUMENTATION
The documents used and required in the Import and its procedure are as follows:-
 Bill Of Entry :- An account of goods entered at a customs house, of

imports and exports, detailing the merchant, quantity of goods, their type, and
place of origin or destination. It is issued by the customs presenting the total
assigned value and the corresponding duty charged on the cargo.
 Pro Forma Invoice : - An invoice provided by a supplier prior to the

shipment of merchandise, informing the buyer of the kinds and quantities of
goods to be sent, their value, and importation specification (weight, size and
similar characteristics).
It is prepared by the exporter.
 Commercial Invoice :- It is a formal note for payment issued by the

exporter to the importer for goods sold under a sales contract. It should give
details of the goods sold, payment terms and trade terms. It is also used for the
customer clearance of goods and sometimes for foreign exchange purpose by
the importer. It is prepared by the exporter.
.
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 Packing List: - The packing list is the consolidate statement in a particular

format, detailing how the goods have been packed. It is informative and
itemizes the material in each individual package such as box, cartons, etc. it is
very useful documents for customs at the time of examination and for the ware
housekeeper of the buyer to maintain a record of inventory and to effect
delivery.
 Certificate Of Origin :- this certificate indicates that the goods which are
being exported are actually manufactured in a specific country mentioned
therein. This certificate is send by the exporter to the importer.
 Quality Certificate :- The quality certificate is provided by the Exporter

to the Importer. This certificate is issued by the (government) quality officer
of the Exporter which verifies the quality of the material exported.
 Shipping Bill :- The shipping bill is the requisite for the seeking the
permission of customs to export goods by sea .It contain :-
 The details of goods.
 Number and kind of packages.
 Shipping mark and number.
 Value of goods.
 The name of the vessel.
 The country of destination.
 The port of loading.
 The exchange rates, etc.
 Airway Bill :- The airway bill is a contract between the owner of the goods
and the carrier or its agent. The receipt issued by an airlines company or its
agent for the carriage of goods is called airway bill.
The first three digit of the airway bill number normally represent the
code, which identifies the carrier. For ex:
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125 – British Airway

074- KLM Royal Dutch
Airline 176- Emirates Airline
 Lorry Receipt :-The lorry receipt is generally issued when the

transportation of goods is carried by road and basically for the short distance.
It also contains all the details such as name of the importer, exporter, details of
the goods etc.
 Insurance Policy/Certificate:- An insurance policy is an insurance

document evidencing insurance has been taken out on the goods shipped, and
it gives full details of the insurance coverage. An insurance certificate certifies
that the shipment has been insured under a given open policy and is to cover
loss of or damage to the cargo while in transit. It is prepared by insurance
broker.
Cost Of Insurance = (QUANTITY OF GOODS IMPORTED*PER UNIT COST

OF GOODS*EXCHANGE RATES) + FREIGHT CHARGES OF TOTAL INVOICE
VALUE + INSURANCE RATES.
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PROCEDURE OF IMPORT IN AREM
The Import Procedure carried out in Arem logistics is explained below in sequential manner:-
 Ioc: - Interoffice communication is done.
 Invitation For Tender: - The tenders are invited and the tender with
appropriate quotation is selected.
 Po: - The purchasing order is placed.
 Preparation Of Documents:-Documents such as bills of entry is prepared and
INCO TERMS mode of payment, value of materials, freight charges etc are
decided.
 E Filing Of Documents: - Goods are arrived mostly in Mumbai port where
custom clearance is done which are computerized E-filing is done.
 Entry Inwards: - Import manifest is submitted by conveyance in charge after
which “Entry Inwards “is granted.
 Noting, Examination And Assessment: - Importer has to submit “Bill of
Entry” along with other documents to custom where goods are assessed to duty,
examined and pre-audit is carried out. Custom duty is paid after assessment.
 Out Of Custom Charge Order:- Goods can be cleared outside port after ‘Out
of Customs Charge’ order is issued by customs officer. After that, port dues,
demurrage and other charges are paid and goods are cleared.
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EXPORT
EXPORT- In International Trade, "Exports" refers to selling goods and services

produced in home country to other markets.
The seller of such goods and services is referred to as an "Exporter" who is based in
the country of export whereas the overseas based buyer is referred to as an "Importer".
ADVANTAGES OF EXPORTING: -
The basic advantage of exporting visa- a- vis confined to the domestic market that
enjoyed are:-
 The company became globally competitive.

 Business risk is spread throughout many markets and countries.
 Profit and turnover increases.
 The company gets many incentives.
EXPORT DOCUMENTATION
Documentation is the most important aspect of overseas trade. Correct documentation

is very important because it alone can secure the swift passage of goods through the
customer resulting in prompt payment of goods exported. The Indian government has
been simplifying the export documentary procedures. There was a time when exporter
would have to handle around 200 documents to complete in various obligations and
formalities. Now this has been reduced to around 60.These documents can be mainly
classified into two categories .They are as follows:-
(a) Commercial Documents.(Pre shipment documents)

(b) Regulatory Documents. (Post shipment documents)
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EXPORT DOCUMENTS
Commercial Documents Regulatory Documents
Principle Auxiliary
 COMMERCIAL DOCUMENTS
Out of 15 commercial documents 8 are principle and 7 are auxiliary.
 PRINCIPLE DOCUMENTS
The 8 principle documents are:-
1. Commercial invoice
2. Packing list.
3. Bill of Lading/ Air Waybill.
4. Certificate of inspection/Quality Control.
5. Certificate of Origin
6. Bill Of Exchange
7. Shipment Advice.
8. Insurance Certificate.
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 AUXILIARY DOCUMENTS
The Seven Auxiliary Documents are:-
1. Performa invoice.
2. Intimation for inspection.
3. Shipping instructions.
4. Insurance Declaration.
5. Application for certificate of origin.
6. Mate’s Receipt.
7. Letter to bank of collection/negotiation of documents.
 REGULATORY DOCUMENTS
There are seven regulatory documents associated with the pre-shipment stage of the
export transaction. They are:
1. ARE Form (for central Excise)

2. Shipping Bill/Bill of Export ( for export)
- For export of goods Ex. Bond
- For export of duty free goods
- For export of dutiable goods
- For export of goods under claim of drawback
- For export of goods under claim of DEPB
3. Port Trust copy of Shipping Bill/ Export Application/Dock Challan For port.
4. Vehicle ticket for port
5. Exchange Control Declaration/GR/PP forms RBI.
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6. Freight Payment certificate Steamer Agents.

7. Insurance Premium Payment Certificate Insurance co.
COMMERCIAL DOCUMENTS
1. Quotation: - An offer to sell goods and should state clearly the prices, details
of quality, quantity, trade terms, delivery terms, payments term. It is prepared
by exporter.
2. Sales Contract: - An agreement between the buyer and the seller stipulating
every details of the transaction. It is a legally binding document. It is therefore
advisable to seek legal advice before signing the contract. It is prepared by
importer and exporter.
3. Pro Forma Invoice: - An invoice provided by a supplier prior to the shipment

of merchandise, informing the buyer of the kinds and quantities of goods to be
sent, their value, and importation specification (weight, size and similar
characteristics).It is prepared by the exporter.
4. Commercial Invoice:-It is a formal note for payment issued by the exporter to

the importer for goods sold under a sales contract. It should give details of the
goods sold, payment terms and trade terms. It is also used for the customer
clearance of goods and sometimes for foreign exchange purpose by the
importer. It is prepared by the exporter.
5. Packing List: - A list with detailed packing information of the goods shipped.
It is prepared by the exporter.
6. Inspection Certificate: - A report issued by an independent surveyor

(inspection company) or the exporter on the specification of the shipment,
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including quality, quantity, and/ or price etc. required by certain buyer and
countries. It is prepared by Inspection Company or exporter.
7. Insurance Policy/Certificate:- An insurance policy is an insurance document

evidencing insurance has been taken out on the goods shipped, and it gives full
details of the insurance coverage. An insurance certificate certifies that the
shipment has been insured under a given open policy and is to cover loss of or
damage to the cargo while in transit. It is prepared by insurance broker.
8. Product Testing Certificate:- A certificate to certify the products are

conformed to a certain international/national technical standard, such as
product quality, safety and specifications etc. it is prepared by accredited
laboratories.
9. Dock Receipt: - A receipt to confirm the receipt of a cargo on

quay/warehouse is pending shipment. The dock receipt is used as
documentations to prepare a bill of lading. It has no legal role regarding
processing financial settlement. It is prepared by shipping company.
10. Bill Of Lading:- An evidence of contract between the shipper of the goods
and carrier. The customer usually needs the original as proof of ownership to
take possession of the goods. It is prepared by shipping company.
11. Airway Bill:- A kind of waybill used for the carriage of goods by air. This
serves as a receipt of goods for delivery and states the condition of carriage
but is not a title document or transferable/negotiable instrument. It is prepare
by airline.
12. Document Ary Credit:- A bank instrument began ( issuing or opening bank)
at the request of the buyer, evidencing the bank undertaking to the seller to
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pay a certain sum of money provide that specific requirements set out in the D/C
are satisfied. It is prepared by bank to issue to importer.
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CUSTOM CLEARANCE OF EXPORT
Every consignment leaving the Indian shores by air , sea , or land has to undergo a
prescribed procedure of custom clearance. This is in EDI (non manually)in following
manner in Arem logistics. with the help of their own custom house agent is MR. N. J.
BANDRAWALLA in Mumbai.
Declaration in Prescribed Format CUSTOMS

EXPORTER/CHA
IT SYSTEM
Bills of lading and other Shipping Bill No.

Documents. Endorsed on check list.
SHIPPING LINE
EXPORTER/CHA
Cargo on board Payment

The Ship of Duty.
Physical Examination
PREVENTIVE Let Export Order SHED
OFFICER APPRAISER
Generation of Shipping Bill
FIG. :- EXPORT CUSTOM CLEARANCE PROCEDURE(EDI)
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The various stages in custom clearance are illustrated in above mentioned figure. The
details are discussed below in stepwise manner.
STEP 1:- The exporter/CHA fills the declaration in prescribed format through the
custom service centre. The exporter verifies the data as per the checklist generated by
the system after which a shipping bill number is generated by the system endorsed on
the printed checklist and this is given back to the exporter/CHA.
In case of dutiable items, exporter pays the duty along with TR-6 chalan generated by
the system
STEP 2:- The goods are allowed to enter the dock on the strength of the checklist
endorsed with the shipping bill number. The exporter then submits this along with
documents as follows to the custom officer who verifies the documents against the
received goods.
 Original invoice
 Packing list
 GR forms
 ARE forms, etc.
STEP 3:- The goods are then presented to the shed appraiser (export) for physical
examination which is carried out by the customs examiner.
STEP 4:- After the physical examination is over the LET EXPORT ORDER is given
by the Shed Appraiser.
The shipping bill is generated in three copies. One copy for customs, the second copy
for exporter and third copy is generated after the submission of Export General
Manifest(EGM).it is mandatory to submit the shipping bill wise EGM to the custom
within the seven days of sailing of ship.
STEP 5 :- The Exporter / CHA submits exporter’s copy of shipping bill duly signed
by the dock appraiser to the preventive officer for allowing the cargo to be loaded on
board the ship.In case of any discrepancy or mis declaration, the export of the
consignment is not allowed and suitable action is taken against the exporter under the
CUSTOM ACT 1962.
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EXPORT INCENTIVES SCHEMES
 EXPORT PROMOTION CAPITAL GOODS SCHEME
The EPCG scheme allows import of capital goods for pre-production, production and
post production (including CKD(complete knock down)/SKD(semi-knock down)
thereof as well as computer software system) at five percent custom duty subject to an
export obligation equivalent to 8 times of duty saved on capital goods imported under
EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of
issuance of license.
It enables the exporter to import capital goods inclusive of machinery, components

and spare parts of machinery required for goods production. Other items eligible to be
imported under this scheme are:
 Jigs
 Fixtures
 Dies
 Moulds,etc.
In case CVD is paid in cash on import under EPCG, the incidence of CVD
would not be taken for computation of net duty saved provided the same is
not cenvated.
The EPCG scheme can be availed by both manufacturer exporters as well as

merchant exporter.
Conditions for the merchant exporters are:-
 The capital goods imported must be installed in the factory of the supporting
manufacturer.
 The name and address of the supporting manufacturer must appear on the
EPCG licence.
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 Both the merchant exporter and the supporting manufacturer must jointly
execute and bond with bank guarantee that they will fulfill the export
obligation.
The EPCG license with a duty saved of Rs.100 crores or more, the export
obligation shall be required to be fulfilled over a period of 12 years.
A person holding an EPCG license may source the capital goods from a domestic
manufacturer instead of importing them. The domestic manufacturer
supplying capital goods to EPCG license holders shall be eligible for deemed
export benefit
It is mandatory for the exporter to fulfill the export obligations by exporting the
goods capable of being manufactured by the capital goods imported under the
scheme.
if in case EPCG authorization fails to fulfill prescribed export obligation, the
exporter shall pay duties of custom plus interest as prescribed by the custom
authority.
As Arem is a manufacturer exporter and a status holder it is exempted from bank

guarantee as it has a clean track record.
DUTY EXEMPTION SCHEMES

There are two duty exemption schemes offered by the government of India to
reduce the custom duty burden on export products. They are:-
 ADVANCE AUTHORIZATION SCHEME

An Advance Authorization is issued to allow duty free import of inputs, which
are physically incorporated in export products. This scheme was earlier
known as the advance license scheme.
AA is exempted from payments of Basic Custom Duty, Additional Custom duty,
Educational Cess, Antidumping Duty and safeguard duty, if any.
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While computing the value of Advance Authorization, the margin for normal
wastage is built in so that adequate quantity of raw material can be imported.
IMPORTANT FEATURES OF ADVANCE AUTHORIZATION

 Advance Authorization (AA) is issued only to the actual user. Neither the
authorization, nor the material against it is transferable even after the export
obligation is fulfilled.
 AA is issued to manufacturer exporters or merchant exporter who is tied to
supplentary manufacturers.
 AA can be issued for:
 Physical export.
 Intermediate supplies.
 Deemed export.
 Sale to SEZ units.
 The need of bank guarantee/letter of undertaking is waived if the AA is
availed on a post export basis.
 The quantum of import allowed are decided on the basis of standard input-
output norms (SION), as notified by the Director General of Foreign Trade
(DGFT).
AA can also be issued on the basis of adhoc norms or self declared norms
as per the foreign trade policy.
 In case of project export, the export obligation has to be fulfilled within the
duration of execution of the project.
 ADVANCE RELEASE ORDER (ARO):-If the manufacturer does not have a
identified vendor and in case of emergency the manufacturer needs raw
material from a local vendor he can ask the regional authority to give a ARO
to his vendor who in turn can use the ARO to import the raw material without
paying the custom duty.
 DUTY FREE IMPORT AUTHORIZATION SCHEME
This scheme is similar to AA except the following difference:
31
1. ENTITLEMENT: - The DFIA scheme is applicable only to products for

which SION have been notified and not on the basis of ad hoc norms.
2. VALUE ADDITION:- A minimum of 20% value addition shall be required
for issuance of such authorization except for items in the gems and jewellery
sector.
CRITERIA FOR AVAILING ADVANCE LICENCE
 AA is given on the basis of the Export Order received by the manufacturer.

 AA is also given on the basis of the Annual Requirement where in based on
previous year’s production in term of value and the quantity the regional
authority issues the license to the manufacturer.
DUTY REMISSION SCHEMES
DUTY DRAWBACK SCHEME:- the duty drawback scheme enable the exporter to
claim the refund of the duties such as excise duty on inputs and finished products and
customs duty on the inputs which are imported from the government.
Under the Custom Act 74 and 75, the Duty Drawback can be claimed when the inputs
are used in the manufacture of goods that are eventually exported or when imported
goods are re-exported without any value addition.
There is no duty drawback available on other taxes and duties such as sales tax and
octroi.drawback is also available on duty paid on packing material , processing and
job work.
PROCEDURE TO CLAIM DUTY DRAWBACK.
There are set of procedure to claim for duty drawback which are explained below in
step wise manner;-
32
STEP 1. The exporter has to ensure that the drawback rate for the products that
he/she is exporting is fixed by the Director of Drawback, under the Department of
Revenue, Ministry of Finance. These rates are called ALL INDUSTRY RATE
(AIR).
The AIR rates are fixed under rule 3 of Drawback Rules where weighted averages of
consumption of various inputs and its value, both imported and indigenous, are
considered. It is fixed as a percentage of the FOB value of export goods in which a
ceiling of the maximum amount of Drawback payable is defined.
STEP 2 . If the drawback rate is not fixed, the exporter has to apply for the fixation
of rate by submitting the details to the Jurisdictional Commissioner of central
exice.the drawback rate thus fixed is called as the BRAND RATE.
Within the 60 days of export the exporter has to submit an application for the fixation
of brand rate. Also if exporter feels that the AIR is fixed at a lower rate than the actual
duty paid, he/she can apply under rule 7 of Drawback Rules for special brand rate.
The conditions for these are:-
 If the AIR is less than 80% of the duties paid.

 The value of imported material is not more than the export value
STEP 3 . For claiming the drawback, an exporter must show the details for which
he/she is eligible to make a claim. It includes “SHIPPING BILL” which is a
triplicate copy marked as “drawback claim copy” and should be endorsed by the
custom officer at the port confirming the dispatch of goods.
DUTY ENTITLEMENT PASS BOOK SCHEME (DEPB)
The DEPB is devised for that exporter who wishes to avail the facility of importing
various inputs and other approved items under DEPB scheme on POST-EXPORT
basis.
33
Under this scheme, the DEPB rates are fixed and announced by the licensing
authorities which are the SION rates fixed as a percentage of the FOB. The exporter is
issued a passbook in which the amount of DEPB entitlement is credited at the time of
exports on the basis of actual amount of FOB value of export as per the bank
certificate
Some features of DEPB are:-
 Capital goods are not allowed for the imports under DEPB scheme.
 The export realization should be in hard currencies such as the US Dollar,
Pound Sterling etc.
 The facility is not allowed for export to Nepal, Bhutan, etc where export from
India are allowed in Indian rupees.
 The exporter has to use a blue shipping bill on which a declaration has to be
made in the prescribed form.
34
INCOTERMS
The International Chamber of Commerce has created "INCOTERMS" in 1936.

INCOTERMS are designed to create a bridge between different members of the
industry by acting as a uniform language they can use.
INCOTERMS are most frequently listed by category:-
 E terms:- E-terms occur when a seller's responsibilities are fulfilled when

goods are ready to depart from their facilities.
1. EX-Works :-One of the simplest and most basic shipment arrangements

places the minimum responsibility on the seller with greater responsibility on
the buyer. The buyer is responsible for making arrangements with their
forwarder for insurance, export clearance and handling all other paperwork.
 F terms:- Terms beginning with F refer to shipments where the primary

cost of shipping is not paid for by the seller.
1. FOB (Free On Board) :- One of the most commonly used terms. Though
frequently used to describe inland movement of cargo, FOB specifically
refers to ocean or inland waterway transportation of goods. "Delivery" is
accomplished when the shipper/seller releases the goods to the buyer's
forwarder. The buyer's responsibility for insurance and transportation
begins at the same moment.
2. FCA (Free Carrier):- The seller is responsible for arranging
transportation, but he is acting at the risk and the expense of the buyer. In
FCA the seller chooses and works with the freight forwarder or the carrier.
35
3. FAS (Free Alongside Ship):- The buyer bears all the transportation costs
and the risk of loss of goods. FAS requires the shipper/seller to clear goods
for export, which is a reversal from past practices. Companies selling on
these terms will ordinarily use their freight forwarder to clear the goods for
export.
 C terms:-Terms beginning with C deal with shipments where the seller

pays for shipping.
1. CFR (Cost and Freight):- It is the shipper/seller's responsibility to get

goods from their door to the port of destination and the buyer's responsibility
to cover insurance from the port of origin or port of shipment to buyer's door.
2. CIF (Cost, Insurance and Freight):- This is similar to CFR, but instead of
the buyer insuring the goods for the maritime phase of the voyage, the
shipper/seller will insure the merchandise.
3. CPT (Carriage Paid To):- In CPT transactions the shipper/seller has the
same obligations found with CIF, with the addition that the seller has to buy
cargo insurance, naming the buyer as the insured while the goods are in
transit.
4. CIP (Carriage and Insurance Paid To):- This term is primarily used for
multimodal transport.
 D terms:- D terms cover shipments where the shipper/seller's responsibility

ends when the goods arrive at some specific point. Because shipments are
moving into a country, D terms usually involve the services of a customs
broker and a freight forwarder. In addition, D terms also deal with the pier or
36
docking charges found at virtually all ports and determining who is responsible
for each charge.
1. DAF (Delivered At Frontier):- The seller's responsibility is to hire a

forwarder to take goods to a named frontier, which usually a border crossing
point, and clear them for export.
2. DES (Delivered Ex Ship):- Here is the seller's responsibility to get the goods
to the port of destination or to engage the forwarder to the move cargo to the
port of destination uncleared.
3. DEQ (Delivered Ex Quay):- In this arrangement, the buyer/consignee is

responsible for duties and charges and the seller is responsible for delivering
the goods to the quay, wharf or port of destination.
4. DDP (Delivered Duty Paid):- DDP terms tend to be used in intermodal or

courier-type shipments. It is the shipper/seller's responsibility to insure the
goods and absorb all costs and risks including the payment of duty and fees.
37
IMPORT PROCEDURE DTA
There are two types of categories under DTA imports:
1. Air/Sea Consignment
2. Duty Free/Duty Paid Consignment
For air consignment no original documents are required and the required
documents are:
 Bank D/O if the documents are in bank’s name.
 If freight, insurance has to be arranged by us, we have to pay.
 Can keep consignment in bond and clear it later, after receiving original it is
given.
 Sometimes consignments are to be kept in bond
 Bank guarantee and space certificate
 Have to maintain a bond register, bond no. , bond date, expiry date card should
be maintained, duly signed by customs and by us.
 For duty paid consignments, no TRA is required whereas it is required for
duty free consignments.
 Our consignments are free.
Documents required:
1. Interoffice communication to furnish a transit bond with bank’s guarantee to

the customs authority in Mumbai to private bonded warehouse on bond to
bond transfer basis.
2. Space and license validity to customs on behalf of the company from the
superintendent of Central-Excise Mumbai.
3. Application to the superintendent of Central-Excise and Customs for in-
bonding the consignment in private bonded warehouse- Pune.
4. Bill of Entry for warehouse
5. Letter of assistant commissioner of customs informing the deposition of
consignments in the private bonded warehouse of the company.
6. Bond ledger report
7. Packing list
8. Invoice
38
9. Shipping bill (export promotion copy)
Material can be cleared as follows:
 On payment of full duty or applicable present duty rate.
 Under Advance License: goods imported under advance license are duty free.
 Under EPCG license: this is only for capital goods.
 Under EPCG, spares license only for spares of capital goods, which are
imported under EPCG scheme at concessional rate of duty as above.
 Under DEPB similar to import on payment of full duty or applicable duty

only, instead of paying duty in cash or demand draft or pay order, is paid by
DEPB.
39
SPECIAL ECONOMIC ZONE
India was one of the first in Asia to recognize the effectiveness of the Export Processing
Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in
1965. With a view to overcome the shortcomings experienced on account of the
multiplicity of controls and clearances; absence of world-class infrastructure, and an
unstable fiscal regime and with a view to attract larger foreign investments in India,
the Special Economic Zones (SEZs) Policy was announced in April 2000.
In the short span of about three years since SEZs act and rules were notified in February
2006, formal approval have been granted for setting up of 570 SEZs out of which 346
have been notified.
THE MAIN OBJECTIVES OF THE SEZ ACT ARE:
(a) Generation of additional economic activity.

(b) Promotion of exports of goods and services.
(c) Promotion of investment from domestic and foreign sources.
(d) Creation of employment opportunities.
(e) Development of infrastructure facilities.
ADMINISTRATIVE SET UP FOR SEZ
SEZs are governed by three tier administrative set up:-
I. The board of approval is the apex body in the department.

II. The unit approval committee at the zonal level dealing with approval of units
in the SEZs and other related issues.
40
III. Each zone is headed by a development commissioner, who also heads the unit
approval committee.
APPROVAL MECHANISM OF SEZ:-
 ANY PROPOSAL FOR SETTING UP OF SEZ in the private/joint/state

sector is routed through the concerned state government who in turn forward
the same to the department of commerce with its recommendation for
consideration of the board of approval.
 ANY PROPOSAL FOR SETTING UP OF UNITS IN SEZ is approved at

the zonal level by the approval committee consisting of development
commissioner, customs authorities and representatives of state government.
INCENTIVES AND FACILITIES OFFERED TO THE SEZS
The incentives and facilities offered to the units in SEZs for attracting investments
into the SEZs, including foreign investment include:-
 Duty free import/domestic procurement of goods for development, operation

and maintenance of SEZ units.
 SEZ are allowed to sell finished products and by-products in the Domestic
Tariff Area on payment of applicable custom duty.
 SEZ units are allowed carrying forward of losses.
41
 100% Income Tax exemption on export income for SEZ units for first 5
years, 50% for next 5 years.
 Manufacturing unit in SEZs as in SIIL are allowed 100% FDI under the
automatic route.
 SEZs have the freedom to bring in export proceeds without any time limit
 SEZ units are exempted from interest rate surcharge on import finance.
 SEZ units are exempted from Central Sales Tax.
 SEZ units are exempted from Service Tax.
 SEZs are permitted to have non-polluting industries in IT and facilities like

golf courses, hotels etc.
 SEZ units may sub-contract part of the production or production processes

through units in the domestic traffic area or through other EOU/SEZ unit.
42
43
EXPORT ORIENTED UNIT SCHEME
(EOU)
The EOU Scheme introduced in early 1981, is complementary to the SEZ scheme. It
adopts the same production regime but offers a wider option in location with
reference to factors like source of raw materials, port of export, hinterland facilities,
availability of technological skills, existence of an industrial base, and the need for a
large area of land for the project.
CHARACTERISTICS AND BENEFITS OF EOU:-
 No license required for import.

 Exemption from Central Excise Duty in procurement of capital goods, raw-
materials, consumables spares etc. from the domestic market.
 Exemption from customs duty on import of capital goods, raw materials,
consumables spares etc.
 Reimbursement of Central Sales Tax (CST) paid on domestic purchases.
 Supplies from DTA to EOUs treated as deemed exports.
 Reimbursement of duty paid on furnace oil, procured from domestic oil
companies to EOUs as per the rate of drawback notified by the Directorate
General of Foreign Trade.
 100% Foreign Direct Investment permisisible.
 Exchange earners foreign currency (EEFC) Account
 Facility to retain 100% foreign exchange proceeds in EEFC Account.
 Facility to realize and repatriate export proceeds within twelve months.
Further extension in time period can be granted by RBI and their authorized
dealers.
 Re-export of imported goods found defective, goods imported from foreign
suppliers on loan basis etc.
 Exemption from industrial licensing requirement for items reserved for SSI
sector.
44
 Profits allowed to be repatriated freely without any dividend 1balancing

requirement
 Access to Domestic Market upto 50% of FOB value of export on concessional
rate of duty.
 Duty free goods to be utilized in two years. Further extension granted on
liberal basis.
 Job work on behalf of domestic exporters for direct export allowed.
 Conversion of existing Domestic Tariff Area (DTA) unit into an EOU
permitted.
 Can procure duty-free inputs for supply of manufactured goods to advance
license holders.
 Supply of ITA-I items in the domestic market which would be counted for
fulfillment of NFE.
 EOUs in agriculture and horticulture engaged in contract farming may be
permitted to take out duty free goods listed in Appendix 14-I to the fields of
contact farmers for production.
ELIGIBILITY FOR SETTING UP OF EOU :-
 An EOU can be set up by any entrepreneur for manufacturing of goods and

also for rendering services. An EOU can be set up for repair, reconditioning,
re-making and re-engineering also.
 Trading activity is not allowed in the EOU Scheme.
 EOU unit is required to achieve only positive Net Foreign Exchange over a
period of 5 years.
 Policy for EOU is given in Chapter-6 Foreign Trade Policy and Chapter 6 of
Handbook of Procedure (Vol. – I)
 EOU can also be set up in the following sectors: -
 Agriculture
 Animal Husbandry
 Aquaculture
 Floriculture
 Horticulture
45
 Pisciculture
 Viticulture
 Poultry or
 Sericulture
PROCEDURE TO APPLY FOR EOU
 All application is to be filed with the concerned development commissioner of

special economic zone. The unit/promoter should have RCMC certificate and
IEC for availing the permission.
 After submitting the application form and if everything is in order, LETTER

OF PERMISSION (LOP) is issued by the zone administration within 2
weeks after interview of the promoter by the Approval Committee.
 A legal undertaking to be executed by the unit to abide by the terms and

conditions of the LOP.
 After then, approval from the state government is required for which the
manufacturing and other activities have to be undertaken under custom bonds
for which formal application is to be made to the deputy commissioner of the
custom. The application should include:-
 Copy of notification under which the place has been declared as

warehousing station.
 Copy of LOP and LUT.
46
 Detail of the premises including ground plan, purchase/rent, and allotment

letter from the industrial development corporation (if any).
 List of raw material, consumables and capital goods etc. required.
 Details about the firm including its proprietor/partners/directors.
 Undertaking that the cost recovery and the other charges shall be paid.
 After verification of the premises and the relevant documents, the requisite
license under section 58 and 65 of the custom act will be issued by the
assistant commissioner/central excise /deputy commissioner customs on
priority basis.
47
IMPORT PROCEDURE IN SEZ/EOU
The Units in SEZ/EOU or Developer of SEZ/EOU to follow the following procedure for
import:-
 After negotiation with supplier, purchase department raises purchase order on

overseas supplier and decides the terms of payment, Incoterm, mode of
delivery and delivery schedule.
 Since most of the goods of SIIL are highly perishable, after shipment takes
place, supplier is instructed to immediately intimate/provide the shipment
details i.e. Commercial Invoice, Packing List, Air way Bill and Test Reports
etc. to the purchase department.
 After getting the above mentioned documents from the purchase department,
EXIM prepares Bill of Entry for home consumption.
 The authorized officer shall register the Bill of Entry, give a running serial
number and assess the Bill of Entry which will require the counter signature of
the specified officer (Asst./Dy/Jt. Commissioner of Central Excise & Custom).
 The assessment of Bill of Entry shall be based on self declaration and will not
be subjected to routine examination. If examination of the cargo is required,
the same has to be carried out at the SEZ/ EOU gate or if it is not possible, in
an area notified by the specified officer for this purpose.
 In case of goods, including capital goods supplied on free of cost or on loan or
lease basis, the Bill of Entry should be filed jointly by the SEZ/EOU importer
and supplier. This is applicable to domestic supplies too.
 The registered or assessed Bill of Entry must be submitted to the custom
officer at the place of import and the said Bill of Entry shall be treated as
permission for transfer of goods to the SEZ/EOU.
 SIIL is having its own custom clearance setup in Mumbai. After receipt of
assessed Bill of entry, they liaison with customs officials. Air lines/shipping
company for delivery of cargo for dispatch to SBBPP, Pune.
The above described import procedure of EOU/SEZ carried out in the AREM
LOGISTICS is explained diagrammatically as follows:-
48
Negotiation with supplier
Raising of purchase order by purchase dept.
Submission of document by supplier to purchase dept. (Commercial

invoice, packing list, AWB, test reports)
Preparation of Bill of Entry by EXIM department
Filing of said Bill of Entry with authorised officer
Registration of Bill of Entry, giving Serial number & assesing the same by
Authorized officer
Submission of assesed Bill of Entry to Customs officer at the place of

port
Said Bill of Entry is treated as permission for transfer of goods to SEZ &
Stamped on 5th copy of Bill of Entry
The delivery of cargo will be allowed at the destination on the strength

of Bill of Entry assessed at SEZ without any transportation Bond
49
PROCEDURE AT SEZ/EOU ON ARRIVAL OF THE

CARGO:
The procedure followed at SIILs SEZ/EOU on arrival of the cargo is explained below
in detail along with the flow chart.
On arrival of goods, or sealed truck, seal on container or on the

truck, as the case may be, shall be verified by the authorized officer at the SBPP gate
of entry.
 On arrival of less than container load cargo, verification of marks and numbers
shall be carried out at random by the authorized officer at the SBPP gate of entry.
 The fifth copy of Bill of Entry bearing endorsement of the authorized officer that
the goods have been received in the SBPP to be submitted to the customs officer
in charge of the airport or port or inland container depot or land customs station or
public/Pvt. bonded warehouse as the case may be within 45 days from the date of
clearance from such airport/seaport/warehouse etc as the case may be failing
which the officer in charge of airport/seaport/warehouse etc shall write to the
specified officer of SEZ for raising demand of applicable duty from SBPP
importer
.
 Endorsement regarding verification of marks and number in case of less than
container load or inspection of seal in the case of full container load cargo or
sealed truck by the authorized officer and the receipt of goods by SBPP importer
shall be the completion of the custom procedure for receipt of goods.
50
Arrival of Cargo
Verification of seal on container by Authorized officer at the gate of

SBPP
Random verification of marks and number by Authorized Officer:

In case of less supply intimate supplier regarding shortage
If goods are upto the mark then intimate Bombay Customs that
goods are received within 45 days
REMOVAL OF GOODS FROM AREM LOGISTICS:
In Special Economic Zone, every out going material is monitored by custom officials,
provided that the exporter shall intimate the specified officer of such export details in
advance. Also entry of each material is to be done by the customs authorities in the
respective customs registers after physical verification of consignment before goods
enter into the SEZ.
Types of receipt are as given:
1. Export
a. Physical Export (by Air, Land & Sea)
b. Inter Unit Transfer
51
2. DTA Sale
a. Sale of product in DTA
b. Sale in DTA of Rejected Goods/Removal of Rejection
c. Sale in DTA of Scrap Material
3. Other Removals
a. Removal of material for Sub-contracting process
b. Removal of goods for Repair/Test/Calibration/ Replacement
REMOVAL
OF GOODS
OTHER
EXPORT DTA SALES
REMOVALS
52
THE PROCEDURE FOR EXPORT FROM SEZ/EOU:
Marketing Department gets purchase order from foreign customers
Preparation of Preshipment documents (invoice, packing list) and forward

it to EXIM dept.
EXIM prepares Shipping Bill in Quadruplicate, GR/SDF form
Shipping Bill is filed with authorized officer along with invoice packing list,
GR/SDF form
Since SIIL is Exporting Pharma products, get NOC certificate on back side of
Shipping Bill from Assistant Drug Controller (ADC)
Authorized officer registers Shipping Bill and gives running serial No and
DO Assessment
Self sealing of container/ package by representative of company gives self

certification and 'Let Export Order' is given on the basis of self certification
Onward entry has to be done in export gate registered and running Serial
No. should be Mentioned on back side of original and duplicate Shipping
Bill
Duplicate and Triplicate copies of the Shipping Bill will be handed over to
Exporters Representative as a proof of receipt of consignment
53
THE COMPARISION BETWEEN SEZ AND EOU
S.NO SEZ EOU
1. SEZ units can be set only in EOU can be set anywhere in India
designated SEZ’s
2. A SEZ unit has to be new unit. Running DTA unit can be converted into EOU
No Conversion is allowed.
3. DTA sales allowed on payment DTA sales up to 50% of FOB Value Of Exports
of full Duties permitted on Concessional Rate of Duty
4. Trading unit are permitted in Trading units not permitted in EOU’s
SEZ
5. No routine examination of Examination of Export Import Cargo By
Export Import Cargo by Customs
Customs
6. Export Proceeds to be realized Export Proceeds to be realized Within 6 months
Within 12 months
7. 100% FDI in allowed FIPB approval required as per sectoral guideline

automatically for
Manufacturing SEZ Units
8. Duty Free material except CG Duty Free material except CG to be Utilized over
to be Utilized over a period of 5 a period of 2 Years
Years
9. Exemption from Payment of No Exemption allowed
Service Tax
10. Retention of 100% Export Retention of 70% Export Earning In EEFC A/C
Earning in EEFC A/C
11. Off shore Banking (OBU) is Off shore Banking (OBU) is not
Permitted by RBI
54
CONCLUSION
 AREM LOGISTICS has been over the years being a prime exporter of
vaccines to various countries. Company has good reserves and high credibility
in foreign market due to which it is not facing problem related to foreign
exchange risk and recoveries from importers’ abroad.
 The company has kept itself in accordance with the latest change in the
technology. It has now upgraded with EDI system of the filling documents to
customs.
 Documentation is one of the most important aspects of overseas trade.
 The present procedure and documentation process, though simplified over a
period of time is still lengthy and complicated.
55
LIMITATION OF THE STUDY
 Due to confidentiality some important information, which are important for

the project, could not be collected.
 The project is based on theoretical guidelines and as per situations prevalent at

the time of practical training. Hence, it may not be apply to different
situations.
 The time span for the project was very short which was of 4 months, which
itself acts as a major constraint. Moreover, studying the guidelines and applied
it practically within such short time span was a task of great pressure.
56
BIBLIOGRAPHY
 BOOKS REFERRED :-
1. M.I.Mahajan : Export Policy,Procedures and
Documentations.
2. Justin Paul & Rajiv Aserkar : Export Import Management
3. Hand book of procedures
 COMPANY JOURNALS & MAGAZINES
 WEBSITES :
www.aremlogistics.com
www.google.com
www.wikipedia.com
www.sezindia.nic.in
57

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SERUM INSTITUTE OF INDIA LTD.

A STUDY ON EXPORT AND IMPORT PROCEDURES IN AREM

Register No: 713318631012

In partial fulfilment for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

SNS COLLEGE OF ENGINEERING

SNS COLLEGE OF ENGINEERING

Department of Management Studies

This is to certify that the report entitled

A STUDY ON EXPORT AND IMPORT PROCEDURES IN AREM LOGISTICS,

Is the bonafide record of the project Report done by

Register No: 713318631012

Master of Business Administration

During the year 2019 – 2020

Submitted for the viva-voice examination held on

Project Guide Head of the Department

Internal Examiner External Examiner

I ENIYAN.T, declare that “A STUDY ON EXPORT AND IMPORT PROCEDURES IN

Date: Signature of the Candidate

Register No: 713318631012

I certify that the declaration made above by the candidate is true.

Signature of the Guide

I extend my heart-felt to management of SNS Institutions Dr.S.N.Subbramanian, Chairman,

I am highly grateful to Dr. G. Mageshwaran, Associate Professor., Department of

I am very thankful to my company guide Mr. Vinothkumar, Operation Manager in Arem

S.No TITLE Pg.No

8. IMPORT PROCEDURE FOLLOWED BY 15

10. EXPORT PROCEDURE FOLLOWED IN 20

14. IMPORT PROCEDURE IN DTA 34

17. IMPORT PROCEDURE OF SEZ/EOU 44

18. EXPORT PROCEDURE OF SEZ/EOU 49

19. SEZ vs EOU 50

I extend my heart-felt to management of SNS Institutions Dr.S.N.Subbramanian, Chairman,

I am highly grateful to Dr. G. Mageshwaran, Associate Professor., Department of

I am very thankful to my company guide Mr. Vinothkumar, Operation Manager in Arem

OBJECTIVE OF THE STUDY

My objectives for the given project were:-

 To study the Import procedure of Arem logistics.

 To study the Export procedure of Arem logistics.

 To study different Incentives, Assistance and Prospect of Arem logistics.

 To learn the environment of an esteemed organization involve in Import and

 To know the operation of 100% Export Oriented Unit (EOU)

 To learn the working procedure of Special Economic Zone (SEZ)

RESEARCH MEATHODOLOGY (DATA COLLECTION

Research methodology is a way to systematically solve the research problem.

B. SECONDARY SOURCES:- The secondary data was collected by various means

Cargo Handling Services :

Supply Chain Management Services

Air Freight Services

Sea Freight Services

Air Cargo Services

Our Working Principle

Our team comprises :

Custom clearing agents

Our modern infrastructure comprise of :

Open top/ flat-rack containers for cargo services

Equipment like cranes & forklifts for purpose of loading/unloading of cargo

Office strategically located in close proximity to international/national airports