Summer Internship Report

Introduction:
Logistics is the management of business operations which includes acquisition,

storage, transportation and delivery of goods along the supply chain.
Logistics management is increasingly becoming a topic of interest among

academicians and practitioners since it may lead to reduced operational costs,
improved delivery performance and increased customer satisfaction levels.
The global logistics industry is estimated to be worth USD 300 billion. Though most
of the large service providers are headquartered in Europe, the biggest market is the
US, which captures about one-third of the world market. The global logistics industry
is characterized by high costs of operations, low margins, shortage of talent,
infrastructural bottlenecks, demand from clients for investing in technology and
providing one-stop solutions to all their needs, and consolidation through acquisitions,
mergers and alliances.
Though, in India, the industry is still in its infancy, there is immense potential for
growth. The Indian logistics industry is currently plagued with low demand, poor
infrastructure, high costs, government regulations etc. However, it is going to turn
around on the back of robust GDP growth, globalization, FDI in logistics and
increasing government support. This paper highlights the current state of the industry,
including the dynamics and opportunities for growth, globally, in general, and in
India, in particular, based on findings from surveys of logistics service providers, and
users, of India and other countries.
Summer Internship Report Page 1

Global Logistics Industry
This section gives an overview of the size of the global logistics industry and its
current status and prevailing dynamics.
Size of the global logistics industry
Currently the annual logistics cost of the world is about USD 3.5 trillion. For any
country, the annual logistics cost varies between 9% and 20% of the GDP, the figure
for the US being about 9%. US-based Armstrong & Associates, Inc. tracks the issues
and trends in the world logistics market and in the US logistics market, in particular,
in their annual surveys of top 25 global LSPs. According to the firm, the global
logistics market sizes in 1992, 1996 and 2000 were USD 10 billion, USD 25 billion
and USD 56 billion, respectively. In 2003 and 2004, the corresponding figures were
USD270 billion and USD 333 billion, registering high growth rates. Though most of
the large LSPs are headquartered in Europe, the US logistics market is the largest in
the world capturing one-third of the world logistics market.
In 2006, it was about USD 80 billion. In 2006, it grew to USD 89 billion, and in 2008,
it registered an impressive growth rate of 16% to cross the USD 100 billion mark for
the first time and reach USD 103.7 billion (Foster and Armstrong, 2006, 2007, 2008).
However, considering the fact that the logistics market in the US is about 10% of its
annual logistics cost (Foster and Armstrong, 2006), there is still immense potential for
growth of 3PL in the US in particular, and in the world in general.
Current status and dynamics of the industry
The extant literature on the logistics industry points to a number of issues that service
providers have to address, such as pricing pressures, high costs of operations and low
returns on investments, hiring and retaining talent, pressure from clients to broaden
the range of service offerings and internationalize operations, demand for customized
solutions and more value-added services, besides infrastructural bottlenecks and
government regulations. Service providers complain that clients expect them to have
the latest software, databases and ERP (Enterprise Resource Planning) packages, and
invest in new technologies such as RFID and satellite-based real-time tracking
systems. Clients perceive that these investments are part of the basic service package,
and often do not want to match the same with increased payments for these additional
services. Pressure from clients to broaden the range of service offerings and
internationalize operations, has forced service providers to look for suitable alliances,
mergers and acquisitions that help fill the gaps in service offerings, and industry
verticals and geographic areas served, achieve economies of scale and enhance service
providers’ capability to support international operations.

Currently, the world logistics market is going through a consolidation phase. Tibbett
& Britten Group of North America was acquired by Exel Logistics in August, 2004,
and Deutsche Post World Net, parent company of DHL, took over Exel in December,
2005. Bax Global was taken over by Deutsche Bahn, parent company of Schenker, in
November, 2005 while A. P. Möller acquired P&O Nedlloyd in February, 2006, and
TNT Logistics was sold to Apollo Management L. P. in November, 2006. However,
mergers and acquisitions have their own set of problems in terms of integration of two
diverse business units. Carbone and Stone (2005) tracked the evolution of 20 leading
European LSPs between 1998 and 2004 in terms of their approach to mergers,
acquisitions and alliances, and found that although growth led to more coverage,
integration of two different cultures was one of the most difficult challenges faced by
these firms in the consolidation process.
Recent trends in the logistics industry indicate that to be successful, service providers
have to differentiate themselves from their competitors in terms of offering value-
added services, focus on key customer accounts that have the potential to generate
high profitability for a long term, enter into suitable alliances to complement the range
of services offered and geographic areas served, and sell logistics services to clients’
suppliers and customers, thus leading to complete supply chain integration.

Indian Logistics Industry
This section gives an overview of the size of the Indian logistics industry, its
competitive dynamics and future prospects.
Size of the Indian logistics industry
The annual logistics cost in India is estimated to be 14% of the GDP, which translates
into USD 140 billion assuming the GDP of India to be slightly over USD 1 trillion.
Out of this USD 140 billion logistics cost, almost 99% is accounted for by the
unorganized sector (such as owners of less than 5 trucks, affiliated to a broker or a
transport company, small warehouse operators, customs brokers, freight forwarders,
etc.), and slightly more than 1%, i.e. approximately USD 1.5 billion, is contributed by
the organized sector. So, one can see that the logistics industry in India is in a nascent
stage. However, the industry is growing at a fast pace and if India can bring down its
logistics cost from 14% to 9% of the GDP (level in the US), savings to the tune of
USD 50 billion will be realized at the current GDP level, making Indian goods more
competitive in the global market. Moreover, growth in the logistics sector would
imply improved service delivery and customer satisfaction leading to growth of export
of Indian goods and potential for creation of job opportunities.
Competitive dynamics and other issues
The following problems existing in the Indian logistics industry make it unattractive
for investments and also create entry barriers.
Logistics is a high-cost, low-margin business. The problem of organized players is

compounded by unfair competition with unorganized players, who can get away
without paying taxes and following operating norms stipulated in the Motor Vehicles
Act such as quality of drivers and vehicles, volume and weight restrictions, etc.
Economies of scale are absent in the Indian logistics industry. Even the organized
sector that contributes slightly more than 1% of the logistics cost, is highly
fragmented. Existence of the differential sales tax structure also brought in
diseconomies of scale. Though VAT (Value Added Tax) has been implemented since
April 1, 2005, failure in implementation of a uniform VAT structure across different
states has let the problem persist even today.
Apart from the non-uniform tax structure, Indian LSPs have to pay numerous other
taxes, octrois, and face multiple check posts and police harassment. High costs of
operation and delays involved in compliance with varying documentation
requirements of different states make the business unattractive. On an average, a
vehicle on Indian roads loses 24-48 hours in complying with paperwork and
formalities at different check posts en route to a destination. Fuel worth USD 2.5

billion is spent on waiting at check posts annually. A vehicle that costs USD 30,000
pays USD 7,500 per annum in the form of various taxes, which include the excise
duty on fuel. This is why freight cost is a major component of the cost of a product in
India.
There is lack of trust and awareness among Indian shippers with regard to outsourcing
logistics. The volume of outsourcing by Indian shippers is presently very low (~ 10%)
compared to the same for the developed countries (> 50%, sometimes as high as
80%). The unwillingness to outsource logistics on part of Indian shippers may be
attributed to skepticism about the possible benefits, perceived risk, and losing control,
of sensitive organizational information, and vested interests in keeping logistics
activities in-house.
Indian shippers expect LSPs to own quality assets, provide more value-added services
and act as an integrated service provider, and institute world-class information
systems for more visibility and real-time tracking of shipments. However, they are
unwilling to match the same with increased billings; even pay little attention to timely
payments that leave LSPs short of adequate working capital.
Indian freight forwarders face stiff competition from multi-national freight forwarders
for international freight movement. MNCs, because of their size and operations in
many countries, are able to offer low freight rates and extend credit for long periods.
Indian freight forwarders, on the other hand, because of their smaller size and lack of
access to cheap capital, are not able to match the same. Moreover, clients of MNCs
often want to deal with a single service provider and especially for FOB (Free on
Board) shipments specify the freight forwarders, which most of the time happen to be
the multi-national freight forwarders. This is sort of a non-tariff barrier imposed on
Indian freight forwarders.
Poor physical and communications infrastructure is another deterrent to attracting

investments in the logistics sector. Road transportation accounts for more than 60% of
inland transportation of goods, and highways that constitute 1.4% of the total road
network, carry 40% of the freight movement by roadways. Slow movement of cargo
due to bad road conditions, multiple check posts and documentation requirements,
congestion at seaports due to inadequate infrastructure, bureaucracy, red-tapeism and
delay in government clearances, coupled with unreliable power supply and slow
banking transactions, make it difficult for exporters to meet the deadlines for their
international customers. To expedite shipments, they have to book as airfreight, rather
than sea freight, which adds to the costs of shipments making them uncompetitive in
international markets. Moreover, many large shipping liners avoid Indian ports for
long turnaround times due to delays in loading/unloading and hence Indian exporters
have to resort to transshipments at ports such as Singapore, Dubai and Colombo,
which adds to the costs of shipments and also delays delivery.

Low penetration of IT and lack of proper communications infrastructure also result in
delays, and lack of visibility and real-time tracking ability. Unavailability and absence
of a seamless flow of information among the constituents of LSPs creates a lot of
uncertainty, unnecessary paperwork and delays, and lack of transparency in terms of
cost structures and service delivery. For example, a shipper has to pay a higher freight
rate if it cannot ensure return load. At present, there is no real time process by which a
shipper may know about the availability of trucks and going rates at the destination
market. Therefore, it has to pay more. Had the market information been available to
both the shipper and the service provider, the service provider’s cost structure would
have been transparent to the shipper and it would have ended paying the actual market
rate. Another example would be that LTL (Less than Truckload) shipments cost more
than FTL (Full Truckload) shipments. Now, when a shipper books a LTL shipment, it
has no idea about the status of its shipment after it leaves the warehouse at the origin
and before it reaches the warehouse at the destination. The service provider may still
convert this LTL shipment into a FTL shipment at its own warehouse before
delivering at the destination. So, the shipper ends up paying LTL rates for a FTL
shipment. Had there been visibility during delivery, this problem would not have
occurred.
Since most of the LSPs are of relatively small size, they cannot provide the entire
range of services. However, shippers would like service providers to offer more value-
added services and a single-stop solution to all their logistical problems. The inability
of service providers to go beyond basic services and provide value-added services
such as small repair work, kitting/dekitting, packaging/labeling, order processing,
distribution, customer support, etc. has not been able to motivate shippers to go for
outsourcing in a big way.
Service tax levied on logistics service fees (currently 12.36% with educational cess)
may make outsourcing costly and outweigh the possible benefits.
There is lack of skilled and knowledgeable manpower in the logistics sector.

Management graduates do not consider logistics as a prime job. To improve the status
of the industry, service providers have to move beyond the level of brokers and
truckers to attract and retain talent.
Future prospects
Despite problems, The Indian logistics industry is growing at 20% vis-à-vis the
average world logistics industry growth of 10%. Since the organized sector accounts
for merely 1% of the annual logistics cost, there is immense potential for growth of
the sector. The major opportunities are highlighted below.

Many large Indian corporates such as Tata and Reliance Industries have been attracted
by the potential of this sector and have established logistics divisions. They started
providing in-house logistics services, and soon sensing the growth of the market, have
started providing services to other corporates as well.
Large express cargo and courier companies such as Transport Corporation of India
(TCI) and Blue Dart have also started logistics operations. These companies enjoy the
advantage of already having a large asset base and an all-India distribution network.
Some large distributors have also forayed into the logistics business for their clients.
Since logistics service can be provided without assets, there is growing interest among
entrepreneurs to venture into this business.
Indian shippers are gradually becoming more aware of the benefits of logistics
outsourcing. They are now realizing that customer service and delivery performance
are equally important as cost to remain competitive in this global economy.
The Indian economy is growing at over 9% for the last couple of years (compared to
the world GDP growth rate of 3%), which implies more outputs and more demand for
specialized logistics services.
The Indian government has focused on infrastructure development. Examples include

the golden quadrilateral project, east-west and north-south corridors (connecting four
major metros), Free Trade and Warehousing Zones (FTWZ) in line with Special
Economic Zones (SEZ) with 100% Foreign Direct Investment (FDI) limit and public-
private partnerships (PPP) in infrastructure development. It is expected that
infrastructure development would boost investments in the logistics sector.
In India, 100% FDI is allowed in logistics whereas in China, until recently, foreign
investment was not allowed in domestic logistics. Almost all large global logistics
companies have their presence in India, mainly involved in freight forwarding. For
domestic transportation and warehousing, they have tie-ups with Indian companies.
As the Indian logistics scenario looks promising, these MNCs are expected to play a
bigger role, probably forming wholly-owned subsidiaries or taking the acquisition
route. The latter may be the preferred route of investment since the target company is
readily acquired with its asset base and distribution network, and the need for building
everything from scratch can thus be avoided. The benefits for the acquired company
include the patronage of an MNC and access to the MNC’s global network. As an
example, DHL Danzas, the biggest logistics company in the world, has taken over
Blue Dart.

Our Company: SSS Sai Shipping Services Pvt. Ltd.
Background
SSS Sai Shipping Services Private Limited was established in May 1988 at Mumbai
as a Custom House Agent [CHA] with assurance of patronage from 2-3 importers of
their co-operation and a small workforce.
We have now become one of the reputed Licensed CHA’s having more than Nineteen
Branch offices at key Cities and ICDs in India and global tie-ups.
We have adequate work force of over 250 skilled professionals chosen from various
disciplines, well equipped with modern sophisticated Communication Systems.
Handling over 50000 TEU Import/ Export by Sea and 500 tons by Air per annum.
We offer Ocean Freight, Transportation, Warehousing facilities with Insurance

coverage at all locations, in addition to speedy, economical, specialized Customs
Clearance Services for Exports and Imports to our valuable customers.
As you may be aware that clearance through customs itself is a very specialized field.
It is known fact that many projects have run into rough weather due to the improper
handling of Technical issue at the customs level. These issues if proper handled and
taken care of, can save substantially the Cost of projects by cutting down in clearance,
excess levies by customs and save avoidable exorbitant port charges. Hence, our
foremost focus is on what matters most to the customer – effective Custom clearance
& Transportation for reliable, realistic, end to end result.
Mr. Haresh A Dhakan, our founder Partner having experience in the field of Clearing
and Forwarding business for around 31 Years and is assisted by retired Government
officials with 30 years experience in the field of Valuation, Classifications and ITC
Policy matters.
For almost two decades in Clearing and Forwarding business we have Established
excellent rapport with officers of Customs, Ports, ICDs, CONCOR, CWC, STPI,
Shipping Co’s., Insurance Co’s., Surveyors & other Trade Custodians and hence we
would be in better position to accomplish tasks undertaken by us as well as by our
network associates overseas. The Director General – Shipping, Govt. of India has
licensed us for operating as a registered MTO.

Objectives & Services Provide by us to our Valuable customer:-
1. Customs Clearance of Import/Export cargos at all branches in India.

2. Arranging Road / Rail Transportation within India.
3. Insurance formalities with Insurance companies (i.e., New India Ins. co. or
United India Insurance Co.)
4. Assistance in Import / Export Procedures and guidance on Import or Export
policy matter.
5. Procurement of Import License such as DEPB, SIL & Specific License.
6. Packing & Crafting and Warehousing facility.
7. Providing best competitive Ocean / Air freight.
8. Facilities for Door-to-Door deliveries around the Globe.
9. They have their own registered License: MTO/DGS/474/2005
10. There also around 15 “G Card holders” working for Exclusive client handling.
11. Impeccable track record of over 20 years with Port & Customs
12. Excellent Rapport and Recognition with officers of Customs, Ports, ICDs,
CONCOR, CWC, STPI, Shipping Co’s., Insurance Co’s., Surveyors & other
Trade Custodians
13. International Trade bodies like FIATA, GFN have granted their prestigious
membership in recognition to our Services.
14. Servicing honored members over 15 years consistently
15. Clientele includes various MNC, Major Industries & Star Export Houses

Presently we are handling Cargos & providing our services to the Various Industries
& projects viz., IT Parks, Chemical Industries, Food Grain, Hospitality Services,
Paper and Steel Industries, Plastic, Pharmaceutical products, New & used Cars,
Handicrafts Guar Gum, Textile and Jewellery, Machineries, Food subsidiary etc. Your
decision to use SSS Sai Shipping Service private Limited is supported by the
Technology to track your goods on a global basis and the Expertise to assure time
definite delivery.
SSS Sai Shipping Service Private Limited with local expertise and facilities including
Pick Up, Warehousing, Consolidation, Import/Export clearance, and Transportation is
the right choice for a market place, demanding service that is integrated, flexible and
predictable.
International Trade bodies like FIATA, GFN have granted us their prestigious
membership in recognisation to our Customer Services.
With the introduction of SEZ Act 2006, and having rich experience of a decade in the
field of EOU & STPI, SSS has expended its scope of work to providing consultancy
services exclusively for SEZ Developers and Unit inside.
Mission Statement
“To provide innovative, practical and top quality logistic services that improve
business solutions, in an environment of fairness, honesty and courtesy
towards our clients, vendors, employees and society at large.”
Vision Statement
“To provide all the logistic services under one roof and become the leading
firm in the country with cutting edge technology so that our esteemed members
feel a complete satisfaction, which reflect on their recurring confidence to
route their cargo through us.”

Clearing and Forwarding
Licensed by the Government of India we are authorized Custom House Agents/

Custom Brokers. Operating in more than 15 cities with the SOLE objective of
reducing your overheads & providing expert advisory consultation on Customs
procedures, harmonized tariffs, duty structures and duty benefits. We are the best
possible solution you can ask for, with an assurance of a guaranteed outcome.
SSS Sai Shipping Services Pvt. Ltd. offers Custom Clearance of cargoes at all
branches in India. The services include taking care of all statutory and legal
requirements and ensuring timely dispatch of cargoes ranging from bulk, project and
containerized cargoes etc, to major clients in India.
The clearing agency is manned by highly trained professionals who are fully
conversant with latest rules and procedures of DGFT and Customs to get the
maximum advantage to its customers in terms of duty benefit and faster clearance.
With the introduction of SEZ Act 2006, and having rich experience of a decade in the
field of EOU & STPI, SSS has expanded its scope of work to providing consultancy
services exclusively for SEZ Developers and Unit inside.
Apart from regular clearance work SSS provides services relating to:-
 SEZ Notifications.
 Preparation of Bond-cum-Legal Undertaking.
 Various Customs formalities.
 Preparation of Annual Returns
 Checking of all pre & post Documentation
Staff Training in operational matters.
Custom House Agent
We are one such applaud able Custom House Agents with awards & testimonials - due
to our wide experience in handling different kinds of cargoes. Our CHA team includes
trained and experienced personnel having good working relations with customs
officials and well versed with the rules and regulations governing imports and exports
into and out of India, ensuring trouble free and quick documentation.
We at SSS Sai Shipping Services Pvt. Ltd. are aware of the logistic requirements of
clients especially, towards eliminating hurdles and timely delivery of the
consignments. These aspects are taken care of through close liaison with the Shipper,
Consignee, Shipping Agent, Custom & Port authorities, Transport Contractors and
others involved in the clearance of the consignments in the best possible manner for
faster execution & total commitments.

SSS Sai Shipping Services Pvt. Ltd. staff's have an in-depth and thorough knowledge
of initial project registration and customs clearance of capital goods imported for
Mega Infrastructural projects.
Freight Forwarding
SSS Sai Shipping Services Pvt. Ltd. with its wide Network in India and abroad acts as
an intermediary between cargo carriers and suppliers/buyers. Since rates are
negotiated for bulk cargo and retailed to individual shippers -SSS Sai Shipping
Services Pvt. Ltd. offers most competitive rates to its Customers.
The expertise covers wide range of cargo. Services are customized to focus on speed
and trouble free shipments to different global locations.
We provide a comprehensive service whether the requirement is a single parcel or a

full container load for our exporters and importers, thus achieving a regular customer
base.
Just as with ocean freight, by using a corporate method of freight consolidation to
many major airports or cities worldwide, we are able to provide exceptionally low
rates for airport-to-airport, door to airport and door-to-door deliveries.
Warehousing facility
SSS Sai Shipping Services Pvt. Ltd. provides warehousing facilities at Ports, with all
latest technologies and equipments. As we handle all types of cargoes, our insistence
of maximum care - benefits the client of safe custody for his goods.
Our Services include:
 Planning Requirements
 Inventory management
 Order processing
 Warehouse management systems
Cargo Warehousing:
 Adequate insured private warehousing space

 Warehouse space for storage of goods carted direct at these centers
 Safe storage of goods
 Control checks on entry & exit of goods

Helps our clients to reduce fixed overheads, increase efficiency, cut down valuable
management time and offer great efficiency
Transportation
The transport sector is one of the core sectors - keeping the country on the move,
literally. Upon this sector, especially road transportation plays the most demanding
role on the entire growth of a nation. And in this highly competitive transportation
industry SSS Sai Shipping Services Pvt. Ltd. has carved out a distinct niche for itself.
As you are aware, the need of industry today is point-to-point delivery. We open, in
giving a total solution to the trade, economy & safety counts maximum - which SSS
Sai Shipping Services Pvt. Ltd. endorse to its fullest by :-
 Cargo Pick up facility round the clock by own fleets of close bodied trucks.
 Transportation of air cargo, custom cleared in hinterlands to international

airport.
 Transport of goods from port of discharge to hinterland destinations, in

conjunction with our overseas partners & associates.
 Offer "door to door" delivery of consignments.
The Company is well equipped to handle all kinds of cargos booking through its
network of branches spread throughout the country and enjoys a reputation for secured
delivery and strict adherence to the time schedules. It is supported by a fleet of trucks,
trailers and trained personnel besides excellent warehousing facilities at various
stations.
Sea & Air Logistics
SSS Sai Shipping Services Pvt. Ltd. provides a full range of logistics consulting
services within the logistics chain, which are based on proven methodologies that take
into account the process of the business and their impact on logistical issues and
profitability in the short, medium and longer terms.

SSS Sai Shipping Services Pvt. Ltd. is a dynamic and successful Air & Sea Logistics
company, providing a high quality of service through a team of dedicated
professionals. SSS Sai Shipping Services Pvt. Ltd. provides great flexibility and
efficiency in providing services to its customers.
We specialize in managing the transport of major infrastructure and industrial projects

to and from India. Our organization provides project shippers with a frequency and
reliability of the entire scope of services on sea and air, which allows projects to move
on formulated & contrived manner anywhere in the world.
SSS Sai Shipping Services Pvt. Ltd. has a Sea of experience in logistics management.
Our logistic management services consultants have undertaken numerous projects
across all types of industry and were entrusted with various major projects of diverse
interest.
Commodities Handled
STPI, Plastics, Glassware, Guar Gum, Food Grain, Handicrafts, Machineries, Sports
requisites, Food subsidiaries, Chemical Industries, Hospitality Services, Hospitality
Services, New and Used Cars, Jewellery and textile, Pharmaceutical Products,
Medical Equipments, Paper and Steel Industries, etc.
Project Cargo
SSS Sai Shipping Services specializes in Project cargo, break bulk and heavy lift
movements out of all major gateway ports in India.
Our integrated services include:
• Inland haulage
• Honoring project time schedule
• Contingency planning and reporting
Branches
Ahmedabad, Bangalore, Baroda, Bhopal, Chennai, Delhi, Hyderabad, Indore, Jaipur

Jodhpur, Kandla, Kolkata, Kota, Mundra, Nagpur, Pipavav, Pune , Udaipur,
Visakhapatnam
Our worldwide networks
Bulgaria, Denmark, Djibouti, Finland, France, Germany, Greece, Holland, Italy,

Norway, Poland, Slovakia, Spain, Saudi Arabia, South Africa, Sweden, Tanzania, U A
E, Uruguay

Our work profile:
At SSS Sai Shipping Services Pvt. Ltd., we had joined as trainees in the company.
But, after learning the basic procedures of import and export, we took interest in the
export department. We had to look after the documentation part of the exports. Also
sometimes complete the formalities of releasing the B/L. We took part in the various
other general activities of the company. We have also prepared the Quality Policy as
well as the Company Clients’ presentation. Visiting different offices at Mumbai, Nava
Sheva, Airoli, Jodhpur and Jaipur gave us wide-ranging information about this field.
Also visiting different ICD’s, CFS’s and CONCOR’s gave us in depth knowledge of
the real working of the logistic industry. Our work at the company was not restricted
to one department. We have not only worked in export, import and administrative
department, but also worked in the finance department when it was needed.

IMPORTS
India’s Scenario for Import

India’s Imports during December, 2008 were valued at US $ 20256 million
representing an increase of 8.8% over the level of imports valued at US $ 18610
million in December, 2007. In Rupee terms, imports increased by 34.2%. Cumulative
value of imports for the period April- December, 2008 was US$ 225809 million (Rs.
1003947 crore) as against US$ 171718 million (Rs. 693445 crore) registering a
growth of 31.5% in Dollar terms and 44.8% in Rupee terms over the same period last
year.
Oil imports during December, 2008 were valued at US $ 4712 million which was
30.9% lower than oil imports valued at US $ 6824 million in the corresponding period
last year. Oil imports during April- December, 2008 were valued at US$ 78827
million which was 44.8% higher than the oil imports of US$ 54421 million in the
corresponding period last year.
Non-oil imports during December, 2008 were estimated at US $ 15544 million which
was 31.9% higher than non-oil imports of US$ 11786 million in December, 2007.
Non-oil imports during April- December, 2008 were valued at US$ 146982 million
which was 25.3% higher than the level of such imports valued at US$ 117297 million
in April- December, 2007.
The trade deficit for April- December, 2008 was estimated at US $ 93819 million
which was higher than the deficit at US $ 58981 million during April- December,
2007.

The procedures for imports in India
1. The person in Charge is required to Submit Import General Manifest (IGM).
2. Custom authorities check the documents; grant entry inward after entry inward
is granted goods can be unloaded from the cargo.
3. Importer has to submit bill of entry giving details of goods to be declared to

customs.
4. Bill of entry can be for home consumption or warehousing.
5. Importer to submit other documents like Invoices, contracts, product literature,

packing list, import license.
6. Noting of bill entry by custom officer.
7. Examination of goods and assessment by custom officer (first appraisement) or

assessment of goods on the basis of documents (second appraisement).
8. Customer officer to approve assessment (valuation of goods) on the bill of

entry and return to importer.
9. Importer ha to pay duty, if clearance for home consumption and to execute

bond if clearance for warehousing.
10. Person in charge: (a) In case of vessel its master (b) in case of aircraft its
commander or pilot-in – charge (c ) in case of train its conductor or guard (d) in
case of vehicle or other conveyance its driver or other person in charge.
11. Significance of person in person –incharge:
12. He is responsible for submitting IGM
13. He is responsible for ensure that good comes through approved route and land
at approved places only.
14. He has to ensure the goods are unloaded after entry inward is granted;
15. Import general manifest (IGM): The person in charge have to submit IGM. In
case of vessel or air craft it has to submit before arrival and in case of vehicle it
has to submit within 12 hours of arrival.

16. Noting of bill of entry: Bill of entry submitted by importer is cross checked
with import manifest submitted by person-in-charge, if the description tallies,
the same is noted by custom duty.
17. Relevant Date for rate and valuation of Import duty.
 In case of bill of entry is entered for home consumption, the date on

which bill is presented.
 In case of warehouse goods, when the bill of entry for consumption is

presented for clearance from warehouse
Bill of Entry: Bill of entry is very vital and important document which every importer
has to submit to custom officer in respect of imported goods. Bill of entry contains
details of goods exported. Bill of entry can be of three types:
 Bill of entry for Home Consumption: is used when the goods are cleared on
payment of full duty for use within India.
 Bill of Entry for warehousing: If the Imported goods are not required
immediately, Importer may like to store the goods in a warehouse without
payment of duty under bond and then clear the goods from the warehouse on
payment of duty.
 Bill of entry ex-bond clearance: This is used for clearance from the
warehouse on payment of dut0y.

EXPORTS
India’s Scenario for Export
The country’s exports fell to $ 10.7 billion or by 33.2 per cent in April 2009 from $
16.1 billion in the same month last year due to the global economic downturn. In
March too, exports slipped by over 33 per cent, making performances in these two
months the worst in 14 years.
In April 2009, exports dipped for the seventh month in a row. As imports too fell
steeply by 36.6 per cent to $ 15.7 billion in April 2009 from $ 24.8 billion a year ago,
trade deficit declined to $ 5 billion from $ 8.7 billion last year.
The steep fall in import was on account of over 50 per cent drop in oil import bill
during the month under review.
Oil imported contracted by 59 per cent to $ 3.6 billion while non-oil inbound
shipments dropped by 24.6 per cent to $ 12 billion.
The government’s target is to make sure that at least we have flat growth in exports in
2009-10.
According to the Union Commerce Ministry, the decline in exports would continue till
September. As the export figures started declining after September 2008, the year-on-
year growth figure from September 2009 could show some upward movement
because of the low base. As inventories with foreign buyers get exhausted, exporters
have begun getting orders. Slowdown has depressed India’s appetite for imports.
Exports for May 2009 dip by 30 %
According to the initial estimates available with the Ministry of commerce, overseas
sales of Indian goods (exports) have contracted for the eighth month running during
May 2009 and stood at nearly $ 10.9 billion, which is an annual dip of 30 per cent.
The latest numbers are a notch better than the 33.2 per cent contraction seen in the
previous month, but far worse than the 27.3 per cent expansion seen in May 2008.
The period of unprecedented export dip since October 2008 is one of the longest in
India’s trade history. A similar contraction was seen for six months at a go between
July and December 2001.
In 2008-09 exports expanded by 3.4 per cent, the lowest since 2000-01 and stood at $
168.7 billion. While Commerce Ministry expects flat growth in exports during 2009-

10, exporters claim that they can manage $ 200 billion worth of exports if the
government supports them with incentives in the Budget and foreign trade policy.
Exports likely to reach $60-62 billion by 2010-11.
“Due to strong fundamentals and other derivatives of value to customers, the industry
will continue to grow despite global slowdown. The BPO industry will see sustainable
growth over the next two years, Mr. Mittal added. The IT and BPO industry would
generate new jobs, giving 22.3 lakh direct and 80 lakh indirect jobs.
Meanwhile, a high-level Nasscom team will be on a five-day visit to the U.S. next
month to hold talks with the new administration there, top politicians, think-tanks and
corporates to convince them of the benefits of outsourcing and immigration issues.
Nasscom will also raise the ‘tantalization’ issue to avoid double taxation on income in
the U.S. Indians with H1B or L1 visas contribute significantly to the US social
security schemes every year, but do not they get benefits since India and the U.S. does
not have a ‘tantalization’ agreement.
Growth in the Merchandise Export
Though India’s export have gone down but the India’s merchandise exports increased
from US $ 63.8 billion in 2003-04 to US $ 162.9 billion in 2007-08 recording average
annual growth rate of 26.4% during the last four years. (Values in US $ billions)
Year Exports %Growth Imports %Growth

2003-2004 63.8 -- 78.1 --
2004-2005 83.5 30.8 111.5 42.7
2005-2006 103.1 23.4 149.2 33.8
2006-2007 126.3 22.5 185.6 24.4
2007-2008 162.9 29.0 251.4 35.5
2007-08(Apr- 99.9 153.1
Nov.)
2008-09(Apr- 119.3 19.4 203.6 33
Nov.)
A number of initiatives were taken to meet the objectives as well as the strategies that
had been announced in the 5 year Foreign Trade Policy. Sectors with significant
export prospects coupled with potential for employment generation in semi-urban and
rural areas have been identified as thrust sectors and specific sectoral strategies have
been prepared. Special Focus initiatives have been prepared for Agriculture,
Handicrafts, Handloom, Gems and Jewellery and Leather and Footwear sectors.

Some of the major initiatives are shown below:
(1) Excise duty reduced across the board by 4% for all products except petroleum
products and those products where current rate was less than 4%;
(2) Interest subvention of 2% has been provided till 31.3.2009, to the following labor
intensive sectors for exports: Textiles (including Handlooms), Handicrafts, Leather,
Gems & Jewellery, Marine Products and SMEs;
(3) Additional funds of Rs.350 crore provided for export incentive Schemes;
(4) All items of handicrafts included in Vishesh Krishi and Gram Udyog Yojana;
(5) Back-up guarantee to ECGC for up to Rs.350 crore;
(6) Rs1,100 crore provided to ensure full refund of claims of CST/Terminal Excise
duty/
Duty drawback on deemed exports;
(7) Additional funds of Rs.1400 crore provided for textile sector to clear the backlog
claims of TUF;
(8) Export duty on iron ore fines eliminated, and for lumps, reduced to 5%;
(9) Import duty on naphtha for power sector eliminated;
(10) Some pending issues relating to Service Tax refund on exports – resolved. .
(11) Introduction of a scheme for incentivising agro processing units.
(12) Introduction of Focus Product and Focus Market Schemes with a total incentive
package exceeding Rs. 2000 Crores.
(13) Duty free import upto 5% for sectors like gems and jewellery, handloom,
handicrafts, leather and footwear, etc.
(14) Giving Export Promotion Council status to Khadi & Village Industries
Commission as well as setting up of new Export Promotion Councils namely,
Electronics and Computer Software EPC, Indian Oil Seeds and Produce Exporters
Association, Services Export Promotion Council and Telecom Equipment
Manufacturers Association of India EPC.
(15) Reduction in customs duty under EPCG scheme from 5% to 3%.
(16)Extension of Export Obligation period under EPCG scheme for cottage and tiny
sector from 8 years to 12 years.

(17)Extension of DEPB scheme till 31st December 2009
(18)Extension of IT exemption for 100% EOUs till 31st March, 2010.
(19)Introduction of a single set of common forms called ‘Aayaat Niryaat’ Forms.
(20)Allowing payment of interest on delayed payments of Terminal Excise Duty and

Central Sales Tax.
The procedure for Export in India
 Preparation of Invoice by the Exporter.

 Preparing the Packing list.
 Container booking either through CHA or direct shipping company.
 The Invoice & the Packing List to the CHA.
 CHA will make shipping bill
[For goods under free goods 5 copies, under DEPB 6 copies, under Draw back
6 copies, under ex-bond-(Export oriended units) 5 copies]
(1st original copy will be given to the custom after CS No,
2nd copy will be given to custom for export proof,
3rd (in case of DEPB or Drawback) will be given to the government for the
exemption government,
4th copy will be with the CHA,
5th/6th TR (transfer copy with the driver who’s carrying the goods).
 Custom will give shipping bill no.
 Assessment of invoice n shipping bill by the custom superintendent.
 Custom will give custom security no.
 Inspection of the goods.
 Seal (both the seals).
 Signature of the superintendent - LET EXPORT.
 You’ll get the BL from the shipping line.
 Payment of the transport charges.
 Packing of the cover to be sent with the driver.
 Reach the port.
 It gets empty at the yard.
 We’ll receive the TR copy + EGM (export general manifesto) by the shipping
sail.
 Goods leave the country.

Note:-
 There are 2 seals on the container

 1st of the ICD or the Exporter(if he has the authority)
 2nd of the Shipping Line
 The 1st seal will be cut at the docks before putting the container in the ship.
 The cover sent with the driver can only be opened by the consignee.
 IGM (import general manifest)
 Bill of Export will be filed instead of Shipping bill when we are exporting by
the road. (To Nepal, Bangladesh)

The details in the documents given by the Exporter i.e. Invoice & Packing List are as
follows:-
INVOICE
 Invoice no.
 RBI Code, IE code, PAN no.
 Exporter’s detail.
 Consignee (Importer).
 Buyer (if any).
 Vessel / Flight No.
 Port of Lading & Discharge &Destination.
 Terms of delivery n Payment (Price Type, Payment, Port and Shipment)
 Description of goods, quantity, rate, amt., packing & forwarding charges n total
invoice amt.
PACKING LIST
 Invoice no.
 RBI Code, IE code, PAN no.
 Exporter’ detail
 Consignee (Importer)
 Buyer (if any)
 Vessel / Flight No.
 Port of Lading & Discharge &Destination
 Terms of delivery n Payment (Price Type, Payment, Port and Shipment)
 Description of goods, quantity, weight, size, total gross and net weight.

Special Economic Zone (SEZ)
Special Economic Zones Special Economic Zone is a Zone which is physically

delineated from domestic tariff area and considered as foreign territory for the purpose
of duties and taxes
India was the first in Asia region to recognize the effectiveness of the Export
Processing Zone (EPZ) model in promoting exports, with Asia’s first EPZ set up in
Kandla. Over the period of time, the Government had experienced various
shortcomings on account of the multiplicity of controls and clearances, absence of
world class infrastructure, and unstable fiscal regime.
With a view to provide an internationally competitive environment for exports,

Government of India announced the SEZ policy in April 2000. The objective of the
SEZ Policy included making available goods and services free of taxes and duties
supported by integrated infrastructure for export production, expeditious and single
window approval mechanism and a package of incentive to attract foreign and
domestic investment for promoting export-led growth.
Effective from 10th February, 2006, Special Economic Zones Act, 2005 and Special
Economic Zones Rules, 2006 have put in place a dynamic piece of legislation with
multifold objectives of –
(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; and
(e) Development of infrastructure facilities
Major incentives to SEZ Developers
A. Direct taxes
 100% income-tax deduction allowed to the Developer under section 80-IAB of the
Income-tax Act, 1961 for any consecutive 10-years out of first 15-years from the
date of notification of the SEZ.
 Exemption from minimum alternate tax under section 115JB of the Income-tax
Act, 1961.

 Exemption from dividend distribution tax under section 115-O of the Income-tax
Act to the Developer, being a domestic company.
B. Indirect Taxes
 Duty free import/domestic procurement of goods for development, operation and

maintenance of SEZs.
 Exemption from Central Sales Tax (CST).
 Exemption from Service Tax.
C. FEMA/FDI
 100% Foreign Direct Investment permitted for setting up of Special Economic

Zone with the approval of Board.
D. Miscellaneous
 Generation, Transmission and Distribution of power in SEZ allowed.
 Full freedom in allocation of space and built-up area to approved SEZ
 Units on commercial basis.
 Authorized to provide and maintain services, viz., water, electricity, security,

restaurants and recreation centers on commercial basis.
Incentive to the SEZ Units
A. Direct taxes
 15-years tax holiday in a phased manner subject to certain conditions.
 100% income tax exemption under section 10AA of the Income-tax Act, 1961 for
the first 5-years, 50% for the next 5-years and thereafter 50% of the ploughed back
export profits for next 5-years.
 No tax on any amount declared, distributed or paid by an enterprise by way of

dividend (interim or otherwise) on or after 1-4-2005 and out of its current income.
The dividend referred to in section 115-O shall not be included in the total income
of the assessee, being a Developer or an Entrepreneur.

 Exemption from minimum alternate tax under section 115JB of the
 Income-tax Act, 1961.
B. Indirect taxes
 Duty free import/procurement from domestic sources all their requirement of

capital goods, raw materials, office equipment, DG sets, for implementation of
their project in the SEZ without any license.
 Exemption from Central Sales Tax (CST).
 Exemption from Service Tax
C. FEMA/FDI
 100% FDI allowed through automatic route for all manufacturing activities in the
Special Economic Zone, except for the following activities.
 Arms and ammunition, explosive and allied items of defense equipment, defense
aircraft and warship; Automatic substances;
 Narcotics and psychotropic substances and hazardous chemicals;
 Distillation and brewing of alcoholic drinks; and
 Cigarettes/cigars and manufactured tobacco substitutes.
 Sectoral norms as notified by the Government shall apply to the foreign investment
in services. The cases not covered by automatic route shall be considered and
approved by the Board. External Commercial Borrowing (ECB) by SEZ units up
to US $ 500 million in a year under Automatic Route without any maturity
restriction through recognized banking channels.
 Free to bring in export proceeds without any time limit.
 Flexibility to keep 100% of export proceeds in foreign currency account.
 Freedom to make overseas investment from such foreign currency account.
 Exemption from interest rate surcharge on import finance.
 Units allowed to write-off unrealized export bills

SEZs have created employment for large number of unemployed rural youth. Even in
the services sector, 12.5 million sq meters space is expected in the IT/ITES SEZs
which as per the NASSCOM standards translates into 12.5 lakh jobs. It is, therefore,
expected that establishment of SEZs would lead to fast growth of labour intensive
manufacturing and services in the country. The total investment in the SEZs, as on
30th September 2008, were Rs.93507.23 crore and the total employment generated so
far to 3,62,650 persons.
Out of the 531 formal approvals given till date, 174 approvals are for sector specific
and multi product SEZs for manufacture of Textiles & Apparels, Leather Footwear,
Automobile components, Engineering etc. which would involve labour intensive
manufacturing. Exports from SEZs during the year 2007-08 was to the tune of Rs.66,
638 crore with a growth of 92% over 2006-07 (overall growth of exports of 381%
over past four years.
Exports from SEZ had registered an extraordinary growth rate of 92% in 2007 – 08
while it was 52% in the previous year 2006 – 07. The major share of SEZs exports are
Gems & Jewellery, Trade & Service, Computer/Electronic Software and Hardware
sector.
The exports has grown from Rs 34,615 Crores to Rs 66,638 Crores in 2007 – 08.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 the view to overcome the shortcomings experienced on account of the
multiplicity of control and clearances; absence of world class infrastructure, and an
unstable fiscal regime and with a view to attract larger foreign investments in India,
the SEZ policy was announced in 2000.
This policy intended to make SEZs an engine for economic growth supported by
quality infrastructure complemented by an attractive fiscal package, both at the
Central and the State level, with the minimum possible regulation. SEZs in India
functioned from 1.11.2000 to 09.02.2006 under the provision of the Foreign Trade
Policy and fiscal incentives were made effective through the provision of relative
statutes.

Growth of SEZ over the years
Year Value (Rs. Growth Rate

Crore) ( over previous
year )
2003-2004 13,854 39%
2004-2005 18,314 32%
2005-2006 22 840 25%
2006-07 34,615 52%
2007-08 66,638 92%
SECTOR GROWTH:
Gem & Jewellery, Trade & Service, Computer/Electronic Software & Hardware are
the major share of the SEZs. Its share was 82.5% out of the total exports. The other is
Textile, Chemicals, Engineering, etc. and these sectors share was 17.5%. Some of the
like Ceramics, tobacco had minimal share in the total exports.
Sector wise breakup of Physical Exports from SEZ
State SEZs
Govt. Govt/Pvt notified Total
SEZs SEZs under
SEZ Act.
Biotech 159.45 159.45
Computer/ 2663.38 1046.24 275.64 3985.26
Electronic software
Electronics hardware 1408.53 6313.34 3399.45 11121.32
Electronics 518.71 518.71
Engineering 886.81 421.87 343 1651.68
Gems and Jewellery 15979.98 7025.93 0.15 23006.06
Chemicals & 1069.49 20.33 333.23 1423.05
Pharmaceuticals
Handicrafts 30.33 30.33
Plastic and rubber 354.97 302.69 657.66
Leather, footwear 190.79 46.23 237.02
and sports goods
Ceramics 24 24
Food and Agro 645.58 645.58

Industry
Non-conventional 126.01 126.01
Energy
Trading and service 14073.22 6793.75 20866.97
Textiles and 1135.69 101.16 79.76 1316.61
garments
Tobacco related 9.5 8.98 18.48
products
Misc 314.66 103.23 431.59 849.48
Total 39275.31 22167.85 5194.51 66637.68
 Total employment in SEZs: 3, 36,235 persons

 Total incremental employment generated in SEZs since Feb 2006: 2, 01,531
persons
 Total investment in SEZs as of 31.12.2008: Rs. 77210 Crores
The procedure for Procedure in India
1. Collecting documents such as Invoice, Packing List, MAW(Master Airway

Copy) or MBL(Master Bill of Lading), etc
2. Making the Bill Of Entry and registering it
3. Forward all the collected documents with the Bill of entry and send it to the
concerned SEZ, for passing purpose from Custom Officers
4. Inform the concerned party for delivery into SEZ
5. Escorting and Examination report is taken on the site, at the time of delivery
Various Schemes under SEZ are:
 ARE
 Bill of Export
o DEPB(Duty Entitlement Pass Book)
o AAS(Advance Authorization Scheme)
o EPCG(Export Promoting Capital Goods)
 Imports
 DTA(Domestic Tariff Area) Sale
 Zone to Zone
Our Visits:

 Mumbai
o JNPT, Nava Sheva
 Nhava Sheva (also called Jawaharlal Nehru Port) is the largest port in India,
handling close to 50% of the country's port traffic. The main goods exported
are cotton shirts, knitted t-shirts, sporting goods, carpets, other textile articles
like embroidery machines and etc., boneless meat, and medicaments. The main
imports are chemicals, machinery, plastics, electrical machinery, vegetable oils
and aluminum and other non-ferrous metals. It has access to neighboring
Mumbai and to the hinterland of Madhya Pradesh, Maharashtra, Gujarat,
Karnataka and most of North India.
 The port was developed to relieve pressure of the port of Bombay (Mumbai) in
Bombay proper and has three terminals: JNPCT, NSICT and GTI (Gateway
Terminal of India). NSICT is India’s first privately managed container
terminal. It is run by Dubai Ports World. Currently it is managed under a
Build-Operate-Transfer agreement set up with the Jawaharlal Nehru Port Trust
(JNPT) of the Government of India.
 It is located south east of Mumbai
 The role of Container Freight Stations (CFS):-

CFS is a place where containers are stuffed, de-stuffed and aggregation/
segregation of export/import cargo take place. With the growing volume of
international trade, the need for expeditious clearance of goods at the port
within the minimum possible time has been gaining importance. This is more
so when the ports are facing congestion at their premises. Further, for optimal
utilization of existing infrastructure, space, equipment, goods that are landed at
ports need to be evacuated straight away without any loss of time. Accordingly
the concept of Container Freight Stations (CFS) has grown in importance along
with the development and growth of ports.
 A CFS is an extended arm of Port/ ICD/ Air cargo Complex, where import/
export goods are kept till completion of their examination and clearance. The
imported goods can be immediately shifted from the port to CFS which also
helps in the reduction of port congestion. All the activities related to clearance
of goods for home consumption, warehousing, temporary admissions, re-
export, temporary storage for onward transit and outright export and
transhipments take place from such stations. Therefore, clearance of goods
from CFS is an important point of consideration for trade in respect of export/
import Cargo as it is the final Customs contact point.
 We have been to the following CFS’s: Dronagiri, MAERKS, GDL, ULA and
TransIndia.

 Serene Properties Pvt Ltd:
Serene Properties Pvt Ltd or Airoli Special Economic Zone (SEZ) is Constructed or
developed by the Raheja Builders. It is the 3 rd working SEZ other than, SEEPZ and
Hirananadani SEZ. Serene Properties Pvt Ltd and Hirananadani SEZ are specialized
IT, ITES SEZ i.e for Computer/Electronic Software and Hardware sector and SEEPZ
is a multipurpose SEZ. Serene Properties Pvt Ltd is developed in 50 acres of land in
Airoli. This SEZ is under development from last one and a half year, there is only one
full fledged working unit i.e Cap Gemini. There are many other companies who have
booked their units. Even talks are going on with Wipro who are interested in taking
two building; the SEZ is very strategically located as it is near to the highway and
opposite to the railway station.
In Serene Properties Pvt Ltd, we met Mr Anil, he was the person incharge of the
Customs of the Serene Properties Pvt Ltd, and was the employee of SSS Sai Shipping
Services Pvt Ltd, from him we understood the working of the Customs and the
documentation for the Exports and the Imports and the working of the SEZs in India.
Serene Properties Pvt Ltd is not completely developed so there is no proper custom
house in the SEZ, all the custom work is taken care by our company i.e SSS Sai
Shipping Services Pvt Ltd, and we are the Custom House Agent of the Raheja
Builders who is the developer so it was decided that it the time the Custom Office is
not properly build the custom work will be done by our company. The required
Custom assessment is done by the Custom Officers of SEEPZ SEZ.
Serene Properties Pvt Ltd is very well developed SEZ with all the required facilities
for the units starting from 24hrs electricity to parking and club house.

Jodhpur
 Concor (The multimodal logistics professionals)
 Container Corporation of India Limited was incorporated in March 1988 under the
Companies Act, and commenced operation from November 1989 taking over the
existing network of 59 ICDs from the Indian Railways
 Indian Railway's strategic initiative to containerize cargo transport put India on
the multi-modal map for the first time in 1966. Given the continental distances in
India (almost 3000 km from North to South and East to West), rail transport could
be the cheaper option for all cargo over medium and long distances, especially if
the cost of inter-modal transfers could be reduced. Containerized multi-modal
door-to-door transport provided the ideal solution to this problem. It was this idea
that saw the Indian Railways entering the market for moving door-to-door
domestic cargo in special DSO containers starting in 1966.
 Though the first ISO marine container had been handled in India at Cochin as early
as 1973, it was in 1981 that the first ISO container was moved inland by the Indian
Railways to India's first Inland Container Depot (ICD) at Bangalore, also managed
by the Indian Railways.
 Expansion of the network to 7 ICDs by 1988 saw increase in the handling of
containers, and along the way, a strong view had emerged that there was a need to
set up a separate pro-active organization for promoting and managing the growth
of containerization in India.
Visiting the CONCOR was a different experience on the whole. We had a chat
with one of the officers in charge over there. We got to know the basic working of
CONCOR. Also we learnt that since the Laloo Prasad government has allowed
around 12 private players in this line, CONCOR faces competition from them. It
had its monopoly in this field, before this. From its humble beginning, it is now an
undisputed market leader having the largest network of 59 ICDs/CFSs in India.
It has currently started double stack container (DSC) train which can carry 180
TEU (20-foot equivalent unit)
From the Jodhpur CONCOR, most of the export goods are sent either to Mundra
or to Nava Sheva. Most of the goods include heavy materials like wooden
handicrafts and guar gum.
Inland Container Depots (ICD)

 Inland Container Depots (ICDs) are facilities located inland or remote from
port(s) which offer services for handling, temporary storage and customs clearance
of containers and general cargo that enters or leaves the ICD in containers
 Their primary purpose is to allow the benefits of containerization to be realized

on the inland transport leg of international cargo movements
 The company is planning to add more rail linked ICDs at various strategic
locations, apart from developing a national network of CFSs and ICDs, catering to
the movement of the EXIM and domestic containerized cargo across the country
Thar dry port (Pvt. ICD)
The Thar Dry Port is owned by Hasti Petro Chemical and Shipping Limited
(HPCSL); the company which is recognized through its well established chain of
ICDs. Thar Dry port is one of its kinds in offering the ICD servicing. Pioneering to
be 1st privatized ICD; it plans to expand its service stream from single operational
location at Jodhpur to multiple strategic locations through global network.
Over here we saw the complete procedure from the start to the end. How first we
have to complete all the document work at the custom office (located inside the
ICD itself), then complete the formalities at the entry gate. Then the container (in
case of FCL) or the truck (in case of LCL) is allowed inside the ICD. Then it’s
checked and the goods are stored inside the container for further transport.
This ICD is the first fully computerized one, for providing on-hand information
generated from the software to our clients (exporters/importers, shipping lines).
Govt. ICD
We also visited one government ICD at Jodhpur. Such ICD’s are maintained by
the central or the state government. This one in comparison to the private ICD at
THAR was a small one. Over here the work procedure also is slower than the
private one. It is yet to have the IDE system. It will have one in the next 5-6
months.
Jaipur
 Concor
The Jaipur CONCOR is a much bigger in size and operation than its Jodhpur
counterpart. While Jodhpur CONCOR concentrates mainly on exports, the Jaipur
CONCOR handles both the imports and the exports. Exports here include
handicrafts, guar gum, etc. Imports here include scrap, china wood, etc.
CONCLUSION

Logistics business indicate that in this highly competitive and high-cost, low-margin
business, I found out that we have to not only focus on differentiating the services
rendered by their companies, but market the differentiating factors of their services
appropriately to the clients. They also need to make their cost structures transparent,
and convince clients to foot the bill towards investments in quality assets and new
technologies such as RFID and GPS (Global Positioning System) leading to improved,
and differentiated, delivery of service. Since clients usually prefer a single-point
solution to all their logistical problems, we need to broaden the range of their service
offerings, internationalize operations and cover as many industry verticals as possible.
We may focus on key customer accounts gradually moving away from accounts
generating low, even negative, profitability. However, small-to-medium-sized
companies that seem to have high growth potential should not be ignored in the
process. In order to become a single point of contact for clients, logistics companies
may pursue acquisitions or alliances, which, however, pose the challenge of
integration of diverse cultures. Attracting, recruiting, training, motivating and
retaining management talent are also a great challenge that logistics managers need to
take on.
We found that logistics managers perceived internationalization of operations,

industry focus or specialization, investment in information systems, availability of
skilled logistics professionals, integration of supply chains, customer focus and
breadth of service offerings as the most important factors for success as a LSP.
However, the survey identified significant gaps between expectations and actual
achievements of LSPs with respect to internationalization of operations, skilled
logistics professionals and integration of supply chains, which should be seriously
looked into by managers. The survey also established relationships among a set of
performance metrics and key success factors to identify significant predictor and
criterion variables. One of the most important observations was that collaborative
relationships with clients and investments in assets are necessary but not sufficient
conditions for success in logistics. The findings of the survey may provide a useful
guideline to logistics managers for allocation of scarce resources.
As far as the Indian logistics industry is concerned, logistics managers of user firms
need to realize that, with supply chains getting more and more complex, outsourcing
part or all of their logistical activities to experienced LSPs will help reduce their
overheads, streamline supply chains, reduce costs and improve service delivery. The
organizational interests should be put above vested interests, if any. They need to
realize that organized LSPs are professionals, who will maintain confidentiality of
sensitive client information.
The Indian government should also focus on developing infrastructure and encourage
public-private partnerships in investments in infrastructure. Highway projects such as
golden quadrilateral and east-west, north-south corridors connecting all four metros
are already underway. Private investments in inland containerized transportation by
railroad, which was a monopoly of Container Corporation of India Limited
(CONCOR), a subsidiary of Indian Railways, until recently, have been allowed. 100%

FDI is also allowed in Free Trade and Warehousing Zones (FTWZ) to create
necessary trade-related infrastructure to facilitate import and export of goods and
services. The government may create logistics SEZs (Special Economic Zones) or
logistics hubs with concessions in land and tax rates. Incentive schemes may also be
extended for construction of modern automated warehouses and cold chains. Access
to cheap capital should be made available to LSPs for investments in infrastructure,
enabling them to extend longer credit periods to their clients and supplementing their
working capital. The government may create a uniform tax structure and do away with
multiple check points and documentation requirements, which would lead to speedier
delivery of cargo. To generate awareness, the government may organize seminars,
workshops, exhibitions and meetings to bring in representatives of logistics users,
service providers and government under one roof, and also sponsor courses in leading
Indian institutes to attract talent. Growth of the logistics industry in India will not only
contribute to the GDP, but also generate employment

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Introduction:

Logistics is the management of business operations which includes acquisition,

Logistics management is increasingly becoming a topic of interest among

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Size of the global logistics industry

Current status and dynamics of the industry

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Size of the Indian logistics industry

Competitive dynamics and other issues

Logistics is a high-cost, low-margin business. The problem of organized players is

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Poor physical and communications infrastructure is another deterrent to attracting

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There is lack of skilled and knowledgeable manpower in the logistics sector.

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The Indian government has focused on infrastructure development. Examples include

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We offer Ocean Freight, Transportation, Warehousing facilities with Insurance

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1. Customs Clearance of Import/Export cargos at all branches in India.

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Licensed by the Government of India we are authorized Custom House Agents/

Staff Training in operational matters.

Custom House Agent

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We provide a comprehensive service whether the requirement is a single parcel or a

Our Services include:

 Adequate insured private warehousing space

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 Transportation of air cargo, custom cleared in hinterlands to international

 Transport of goods from port of discharge to hinterland destinations, in

 Offer "door to door" delivery of consignments.

Sea & Air Logistics

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We specialize in managing the transport of major infrastructure and industrial projects

Our integrated services include:

Ahmedabad, Bangalore, Baroda, Bhopal, Chennai, Delhi, Hyderabad, Indore, Jaipur

Our worldwide networks

Bulgaria, Denmark, Djibouti, Finland, France, Germany, Greece, Holland, Italy,

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India’s Scenario for Import

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1. The person in Charge is required to Submit Import General Manifest (IGM).

3. Importer has to submit bill of entry giving details of goods to be declared to

4. Bill of entry can be for home consumption or warehousing.

5. Importer to submit other documents like Invoices, contracts, product literature,

6. Noting of bill entry by custom officer.

7. Examination of goods and assessment by custom officer (first appraisement) or

8. Customer officer to approve assessment (valuation of goods) on the bill of

9. Importer ha to pay duty, if clearance for home consumption and to execute

11. Significance of person in person –in- charge:

12. He is responsible for submitting IGM

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17. Relevant Date for rate and valuation of Import duty.

 In case of bill of entry is entered for home consumption, the date on

 In case of warehouse goods, when the bill of entry for consumption is

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India’s Scenario for Export

Exports for May 2009 dip by 30 %