YENEPOYA INSTITUTE OF ARTS, SCIENCE, COMMERCE AND

MANAGEMENT
BALMATTA, MANGALORE
YENEPOYA (DEEMED TO BE UNIVERSITY)

AN INTERNSHIP REPORT ON
“GAC”

SUBMITTED BY
ABHISHEK K
III BBA (A&L)
20BBAAL012

UNDER THEGUIDANCE OF
SREERANJINI
DEPARTMENT OF
COMMERCE

IN PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR THE AWARD OF

THE DEGREE OF
BACHELORS IN COMMERCE

September 2022
 DECLARATION

I Abhishek Kadesseriyil bearing Reg. No.20BBAAL012 hereby declare that this project
report entitled “XXX” with reference to “GAC”, Kochi had been prepared by me
towards the partial fulfillment of the requirement for the award of the Bachelors of
Commerce at Yenepoya (Deemed to be University) under the guidance of Ms.
Sreeranjini, Department of Commerce, Yenepoya Institute of Arts, Science, Commerce
and Management

I also declare that this field study report is the result of my own effort and that it has
not been submitted to any university for the award of any degree or diploma.

Place: Mangalore
Date:

Name of the student: Abhishek Kadesseriyil

III BBA(A&L)
20BBAAL012
 ACKNOWLEDGEMENT

Place: Mangalore
Date:
Name of the student: Abhishek Kadesseriyil
Reg No: 20BBAAL012
CHAPTER CONTENTS
NO

CHAPTER INTRODUCTION TO THE TOPIC

1.

CHAPTER INDUSTRY AND COMPANY PROFILE

2.

CHAPTER RESEARCH METHODOLOGY

3.

CHAPTER REVIEW LITERATURE

4.

CHAPTER DATA ANALYSIS

5.

CHAPTER FINDINGS, SUGGESTIONS AND

6. CONCLUSION

CHAPTER REFERENCES
7.
 CHAPTER 1
INTRODUCTION

This work refers to a review of Freight Forwarding Business. Today's rapidly changing business
environment creates greater competition between the markets of companies that are changing faster
than at any other time in history. Product life cycles are getting shorter and businesses have to
compete globally.
Shippers play a vital role in any trade. Exporters are international transport builders and they play a
key role in the growth of international trade in India by facilitating exporters, exporters, importers,
port authorities / ports etc.
The shipping industry will continue to benefit from the growth of trade and certain building benefits
over carriers. The value is financially driven; performance is driven by our status. The strategic
position should be assessed in a disciplined manner, examining the different and related functions
within the chain of transfers in order to understand the resources for collaboration and value-adding
options.

1.1. Over View of the Topic

Export is a service used by foreign and export companies. Although the sender does not remove the
load itself, it acts as a liaison between the client and the various transportation services.
Exporting products from one international location to another may include a variety of carriers,
requirements and legal requirements. The shipping service has a large processing of this work for
the client, freeing up what could have been a heavy load.
Shipping services ensure that products arrive at the correct destination on the agreed date, and are in
good condition. Shipping service facilitates established relationships with carriers of all kinds, from
airlines and trucks, to trainers and operators of maritime transport. Transport services negotiate the
best amount to deliver the product in the most economical way by looking at the various bids and
choosing the one that best balances speed, cost and reliability.
Shipping plays an important role in facilitating international trade, accomplishing many different
tasks. On basic terms they work with exporters to purchase and manage transportation services. This
usually includes air or sea cargo, as well as road transport equipment to transport goods from
hijackers to the port.
Exports have become a growing and specialized service in the current context of globalization, strict
security rules and skills shortages. Maintaining competitive advantage in such an area requires
strategic planning and implementation, and it will be challenging as the complexity grows.
 CHAPTER 2
INDUSTRY AND COMPANY PROFILE

2.1. About GAC

Founded in 1956, GAC’s core business comprises of three key areas, namely Shipping, Shipping
and Maritime Services with more than 300 offices covering more than 1000 locations worldwide for
all shipping and transport needs – from shipping agency services to the management of the supply
chain and support at sea. GAC employs more than 8,000 people worldwide. GAC’s main business
office is located in Jebel Ali in the United Arab Emirates. They have regional offices in Rotterdam,
Houston, Dubai and Singapore. GAC aims to be a partner in your strategy as you achieve success.
The GAC tag line is ‘Delivery your strategy.’ It tells customers that we have the skills, assets, prices
and momentum to work with them to achieve their business goal.

GAC knows that you must first sow before harvest. That is why GAC always believes in
investment: in long-term relationships with their customers, partners, product ambassadors and
suppliers; in technology and well-functioning machinery- and well-designed; and human resource
development, as evidenced by the establishment of the GAC Corporate Academy in 2007.

POLICY

Quality is the foundation of their success and has been at the heart of their working culture. GAC’s
mission is to offer their customer a consistently high level of service that exceeds their
requirement and expectation. All GAC offices are certified under the Quality Management System
ISO –certified service

THE GAC STANDARD

GAC defines standards to enhance customer and employee satisfaction. They

invest in long- term relationships; and know that deeds are more powerful than
words; and recognize that trust must be earned therefore.

GAC COMMITMENT

GAC is committed to complying with all customer and statutory requirements

and continually striving to improve their system.
2.2. GAC’s Vision and Mission

To provide leadership and innovation in global business and community life by

delivering a flexible portfolio of services built on qualify, safety, honest, vigor
and a commitment to long term business relationship.

MISSION
GAC is a worldwide service provider dedicated to building long term relationship with customers,
staff and suppliers. We are committed to delivering integrated services to Shipping, Logistics,
Marine and related markets at the highest levels of quality and safety.

GAC SHIPPING

GAC Shipping is a global leader in ship and hub agency services, representing
more than 3,500 customers and handling as many as 96,000 jobs annually.

GAC LOGISTICS

GAC Logistics meets the global needs of manufacturers, distributors and

retailers for efficient supply chain and logistics. Our comprehensive portfolio
includes multimodal freight services, contract logistics, land transportation, ship
spares logistics, and international moving.

GAC MARINE

GAC Marine delivers a comprehensive range of marine transportation services to the offshore
industry. We have a proven track record in many complex offshore projects, providing essential
support for all stages of offshore exploration, construction, development and production in selected
markets.

GAC LOGISTICS SERVICE

They understand that every shipment has its unique requirements. Whether
you’re shipping textiles from the South of India or project cargoes from the
North, we analyses your needs and formulate the best solution for you. Tap into
our worldwide network that offers faster service, complete visibility, security and
competitive pricing.

 Fast and Efficient

 Global network, local expertise
 Proven skills
 Value adding
AIR FREIGHT

GAC’s worldwide freight management capability ensures their customer’s cargo

reaches any city, country or continent wherever they need. Their gal partnership
agreement with major air carrier means their customers get priority and have
access to competitive rates and capacity. Goods are collected at the point of
origin, cleared through customs and delivered to the end consignees using the
most cost efficient and expedient route. They monitor and provide progress
report every step of the via their global IT system, giving clients complete
visibility of the move and peace of mind.

SEA FREIGHT (NVOCC)

GAC India’s popular direct consideration service helps to reduce freight cost
by routing to direct calls with reduced transit time. The service is offered by
Cargo Gulf, GAC’s branded NVOCC to host of destination in Europe, The
American, Middle East and Far East.

For LCL shipment, Cargo Gulf operates weekly consolidation to destination

around the world, which is widely known for its bound delivery. Cargo Gulf
assist customer for FCL shipments. Issuing its own carrier Bill Of Lading
means cargo gulf is in a position to control the cargo door-to-door. As one of
the largest NVOCC freight buyers in the world, GAC are able to pass on
competitive rates to clients.
 CHAPTER 3
RESEARCH METHODOLOGY

3.1. Methodology

A case study on GAC Shipping Private Ltd. Form the major method employed, for which primary
and secondary sources where used. Secondary sources like official document, annual report, book
and journals where used. Primary sources like direct observation of the functioning of logistics and
discussion with the professionals in the logistic industry were also taken up as part of the study.

In this study Descriptive Research is used. The major purpose of descriptive of the state of affairs it
exists at present. There are two ways a researcher can go about doing a descriptive research project,
and they are:

Observational; defined as a method of viewing and recording the participants.

Survey; defined as a brief interview or discussion with an individual about specific topic.

3.2. Objectives

 To understand the export procedure in logistics

 To understand the need and importance of documentation in export
 To study the different documents used in export transactions
 To gain practical knowledge about the organization and export procedure of GAC Shipping
Private ltd
 Developing interpersonal skills.

3.3. Scope and Limitation of the study

Even though logistics management is most talked about this topic today, currently no tools are
available to measure any manufacturing organizational logistics efficiency.
Measurement of efficiency will help to know where the company stands and this all parameter of
efficiency need to be improved. Improving efficiency will help the company to satisfy the customer
 How to improve documentation process.
 Better use of new technology in this process
 The study is mainly based on secondary data
 Time for study is only a short period, a month
 CHAPTER 4
REVIEW OF LITERATURE

4.1. Literature Review

EXIM procedure refers to the steps involved in exporting goods or entering national borders.
Evaluating service quality is not an easy task because of its diversity, intangibility, and
inseparability. Considered service quality is the interaction between customer and provider, so we
can find service quality requirements directly from the sender through quantity and quality surveys.

On the other hand, by reviewing the literature and working publications, I can get some research on
service needs related to the shipping, processing or shipping industry.

Brooks (1985) discloses the quality of the transport industry service such as shipping time, shipping
method, reputable network company reputation, shipping frequency and subsequent shipping.

Lu and Dinwoodie (2002) have strongly examined the development of an international network of
regional transfers. Collaboration between competing transmitters can create an ideal environment
and network sharing with each other.

A study by Lai and Cheng (2004) demonstrates the transportation industry in terms of census
history, ability to provide multiple transportation services, service performance and potential
prospects. They also point out that many transmitters have great potential to provide goods and
services transferred to traditional goods, but appear to be unable to provide other value-added
services.

Liang et al. (2006) highlighted four important aspects of maritime service. Four service features
include easy operation and responsiveness, integrated service, transport capacity, and price.

Tongzon (2009) studied the issue of port selection from the perspective of exporters in Southeast
Asia. Efficiency is found to be the most important factor followed by the frequency of shipping,
adequate infrastructure and location.

Lun et al. (2009) evaluates line delivery from a network perspective with the aim of developing a
descriptive framework for the operation and development of liner transport networks. This
framework supports linear shipping companies and partners to improve cost and service
development for their networks.

Shang (2009) strongly studied the organizational reading skills of foreign company providers. The
results show a positive relationship between the combined learning ability of the organization and
the performance of the service.
Lu and Yang (2010) actively examined the power of the transport service and the robust
performance of operators of the international distribution center in Taiwan. Three key skills are
innovation, customer responsiveness and flexibility.

Bock (2010) proposed a real-time control system for shippers to expand cargo consolidation, reduce
empty vehicle traffic, and manage potential disruptions.

Feo et al. (2011) evaluated the preferred analysis of preferred cargo shippers between a short-
distance ship and house-to-house transport in terms of time, reliability and frequency of shipping.

Yang (2012) used a detailed retrospective analysis to assess the potential of the planning services
that are important to marine carriers such as transport service reliability, transport service capability,
flexibility and planning information ability. These factors have had a very positive effect on
financial performance. Promote the quality of service specified by the domain.

The Department of Lands, Infrastructure and Transport (2011) discloses the essential service quality
requirements for third-party transportation providers, including fast delivery, price, schedule
reliability, staff capacity, problem management, transportation solution and information delivery
capabilities. Following the logistics review of the logistics committee, a number of solutions are
proposed such as improving technical support, cost and time-saving solution, comprehensive
transportation strategies, customer support system and web-based information sharing.

Vivaldini and Pires (2013) used a mobile business approach to fourth-party asset management. The
results reveal a combination of best practice to reduce costs and improved performance.

Rogerson et al. (2014) proposes a framework and procurement process for transportation services
and the model proposes three criteria such as purchasing function, value level and type of service.

Lloyd’s List (2014) proposes to improve service quality that will not only help the transferors to
survive but also make a profit in this malicious shipping market.
 CHAPTER 5
DATA ANALYSIS

5.1. Freight Forwarding

Shipping is associated with the delivery of goods from one place to another by one or more network
companies by air, sea, train or highway.

The importance of international trade exports was recognized in Canada in 1948 when the Canadian
International Freight Forwarders Association was formed. CIFFA has recognized that the transfer of
goods, whether by land, sea, rail or air, requires co-operation, control and agreement - over the best
ways to ensure that goods flow efficiently and efficiently across borders, overseas, and globally.

5.2. The Principles of Freight Forwarding

The principles of asset transfer are based on the efficient and cost-effective transfer of goods that
are maintained throughout their journey. To achieve this, shippers become experts in managing
supplies to ensure that the goods arrive on time. Successful trade and shipping to expand world
markets means having the right tools at your disposal.

To negotiate tariffs, regulations and a better understanding of land, sea, rail, and air transport
requirements, exporters manage the risks and benefits of both national and international transport
using the latest technological advances.

5.3. Successfully Navigating the World of Freight Forwarding

Having the knowledge and skills to navigate in the rules of transfer is important in ensuring the
successful delivery and delivery of goods. Although knowledge of tax laws is an important part, the
successful transfer of goods by shipment depends on its service industry. Thus, shipping depends on
having the right people committed to good service and customer satisfaction to ensure that goods
arrive at their destination on time and efficiently.

Many custom-made firms recognize this and ensure that their highly trained employees are available
to sew and develop a comfortable delivery experience for their customers. Negotiating
transportation and shipping regulations is a difficult task; Proper import and export of goods
depends on the choice of the supply chain and a reliable supplier.
5.4. Role Played by Different Parties of Freight Forwarders

Shipper, transferor, or transfer agent is a person or company that arranges the delivery of individuals
or other companies and may act as a network company. The transmitter usually does not work as a
network company and only works as an agent, in other words as a third-party transportation
provider that sends shipments through network-based network companies and those documents or
arranges space for this shipment. The type of Network Company includes ships, aircraft, trucks, and
a railway line.

Shippers usually arrange for shipment to an international destination. Also called international
exporters, they have technologies that allow them to edit and process documents and perform
related duties related to exports. Other general information reviewed by the consignor is a
commercial invoice, shipping notice, goods bill and other documents required by the Network
Company or country to export, import or move. Much of this information is now being processed in
a paperless environment.

Role of NVOCC

As the name suggests, NVOCC operators do not have a ship. Their work is aimed at the sender and
they eventually become the Liner customer in charge of their box. Few of them are likely to have
containers and will be issuing their Bill of Lading and will have a wider network in the field in
which they operate. They remove the House Bill of Lading from the passengers and when they
transfer the container to the Liner, they receive the Liner Bill of Lading. This Original Shipping Bill
will be forwarded to the NVOCC operator section at the end of the destination and submit this to the
Liner. Alternatively, to avoid delays in sending the original document at the end of the site, the
same will be provided to the Liner / agent’s office itself. The Liner / Agent at the loading station
will send an electronic message to the shipping port regarding the delivery of the first load building
to the loading dock and deliver the delivery order based on the consignment of the consignor /
operator NVOCC itself. NVOCC employees provide the sender with House-to-House Transport
Documents or Combined Transport Documents as they depart from the warehouse and take
responsibility for accessing the goods to the customer’s warehouse.

Role of Consignee

The party, who will receive the goods, is usually the buyer. The person to whom it is sent, where
goods sent to him belong to him and are ordered to be delivered they are at his risk when the
consignment is carried out according to his order; and the persons employed in the delivery of
goods are his ambassadors. If the goods do not belong to him, if the goods are delivered under the
condition that the sender will accept the sender's debts, he will definitely receive them.

It is common in the shipping documents to state that goods must be delivered to the sender or to his
or her shareholder, who or he is paying the goods; in such a case the sender or his or her shares, on
receipt of the goods, stating that he or she is obliged to pay the goods.
Role of Clearing Agent
Clearing agent means any person who is engaged in providing any service, either directly or
indirectly, concerned with the clearing and forwarding operations in any manner to any other
person and includes a consignment agent. Once the cargo arrives at the port/ CFS the clearing
agent at the consignee’s place will go with the necessary documents and take delivery of cargo. In
order to take delivery of cargo there are many processes that are to be done which is already
mentioned in CHA import process and clearing and forwarders agent.

5.5. INCOTERMS
Inco terms are ICC’s standard definition of trade terms and are internationally
recognized as indispensible evidence of the buyer’s and seller’s responsibilities
for delivery under a sales contract.

There are actually two FCA terms:

FCA Seller’s Premises where the seller is responsible only for loading the
goods and not responsible for inland freight; and

FCA Named Place (International Carrier) where the seller is responsible for inland freight.

The 13 INCOTERMS
What are INCOTERMS?

Inco terms are set in three simple letter codes that represent different ways in which international shipping
can be scheduled. They allow sellers and buyers from different cultures and legal systems to determine when
to own and pay for goods, insurance and the cost of goods being transferred from one to another.

Who decides what INCOTERMS?

The International Chamber of Commerce has established strict definitions for each incoterm.
Choosing the right incoterm allows buyer and seller to negotiate a price that best suits their needs
and ensures there will be no confusion as to who is paying the bills. To ensure that the latest version
is used for shipping contracts should refer to “INCOTERMS 2000”.

When should INCOTERMS be used?

It is not mandatory to use incoterms. However when things go wrong and disputes arise it becomes
much easier to resolve and find who is responsible for it. For security, incoterms must be
determined by the negotiating phase of any international purchasing contract.
How do INCOTERMS work?

Each INCOTERM is a summary of three characters related to where the seller's bond ends. They
must be listed on purchase or shipping contracts. Some incoterms require a switching area to be
named. Along with the buyer and seller there are "carriers". They are people who have a contract to
transport goods by land, sea, air or a combination of routes. The seller will be given a bill of lading,
a road bill or a receipt for the carrier and these documents can be used to prove that the goods have
been taken by the carrier.

There are 4 groups of INCOTERMS – “E”, “F”, “C”, & “D”

Group: E

Used where the seller does not want to arrange transport

EXW – “Ex-Works” means that retailers have a sole responsibility to make the
best available to retailers' premises, that is, at work or in the factory. The seller
has no obligation to load the goods into the car provided by the buyer unless
otherwise agreed. The buyer bears all the costs and risks involved in delivering
the goods from there to the intended destination. “Ex works” represents the
minimum seller's obligation.

Group: F

Used where the seller can arrange some transport within his/her own country.

FCA - Free Network Company, this term is designed to meet the transportation needs of many
types, such as container or roll-on, outbound traffic by trailers and boats. The seller fulfills his
obligation when goods are delivered to the carrier for storage at a specified location. If there is no
specific point that can be made at the same time of the sale, the parties should refer to the place
where the carrier should make the goods at his payment. The risk of loss or damage to goods is
transferred from the seller to the buyer at the same time.
FAS - free on the side of the ship, requires the seller to bring the goods to the side of the ship to the
port. From there, the buyer bears all the costs and risks of losing and damaging the property.
F.A.S requires the buyer to cancel the goods for shipment and pay the shipping costs.
FOB - The Free On Board, named after the shipping port. Goods are shipped by the merchant at the
shipping point specified in the sales agreement. The risk of loss or damage to the goods is passed on
to the buyer when the goods cross the railway line. The seller pays the shipping cost.
Group: C

It is used where the seller can arrange and pay most of the cost of imported goods.
CFR- Cost and Supplies, Named at the destination port requires the seller to pay the costs and goods
required to deliver the goods to the so-called, but risk of loss or damage to the goods. The seller
must make an agreement with the insurer and pay the insurance premium. Insurance is usually
important for international transportation because the transport companies have a legal obligation
for loss or damage.

CIF - Cost, Insurance and Property, called the seaport where you go. This is a CFR with an
additional requirement for the seller to obtain transport insurance against the risk of loss or damage
to property. The seller must make an agreement with the insurer and pay the insurance premium.
Insurance is usually important for international transportation because the transport companies have
a legal obligation for loss or damage.

CPT - Freight / Chariot goods, named after the destination or port of your destination. The term
means that the seller pays the freight forwarder to the specified location. The risk of loss or damage
to goods and any other costs increases the transfer from the seller to the buyer when the goods are
delivered to the carrier's stock, and not to the ship's ship.
Ideally, a "paid car / trailer" can be used for all modes of transport, including container or outbound
trailers by trailers and boats. When merchants are required to provide a goods bill, road bill, or
receipt for a network company, the seller appropriately fulfills his obligation by delivering the
document issued by his carrier to the main destination.

CIP - Carriage and Payment Insurance In the named or port of your destination. This term is the
same as "paid goods / vehicle" but there is an additional requirement that the seller must produce
transport insurance against the risk of loss or damage to the goods within the vehicle. The seller
makes a contract with the insurer and pays the insurance premium.

Group: D

It is used where the seller can pay most of the delivery costs to the destination country.

DAF - It is delivered to Frontier, a place called destination, by land, not by loading. This term
means that the seller's obligation is fulfilled when the goods reach the border but before the
country's tax threshold specified in the sales contract. This term is most commonly used when goods
are transported by train or truck. The seller has full costs and risks in delivering the goods so far, but
the buyer must arrange and pay for the goods in order to clear the customs.

DES - Shipped Ex-Ship, called destination, not emptied. The term means that the seller makes the
goods available to the buyer on the ship in an area called a sales contract. The seller bears all the
costs and risks involved in delivering the goods there.
DEQ - Ex-Quay posted, destination named, unloaded, not deleted. This term means that the seller
has agreed to make the goods available to the buyer at the shipping point or port at the point
specified in the contract of sale. The seller bears all the costs and risks of delivering the goods to the
point of disposal. There are two different types of Ex quay contracts: “Ex Quay duty paid” and “Ex
Quay duty on customer account”. First, the work is paid for by the seller. Second, the tax is also
paid by the seller, but the buyer must reimburse the seller.

DDU - Delivery Work Not Paid, Destination, Unloaded, Deleted. Delivery Duty paid or under these
terms, the seller fulfills his obligation to deliver when the goods are available to the buyer who has
been imported from the place or place of the destination name. The seller bears all the costs and
risks involved in delivering the goods to or from the specified area. There is no obligation to obtain
an import permit.

DDP - Delivery Work Paid, destination name, unloaded, deleted. This name represents the top
obligation of the seller. The word “DDP” is usually followed by words that indicate the location of
the buyer. It notes that the seller bears all the risks and all costs until the goods are delivered. This
term can be used as an indifference to transportation. If stakeholders wish to clarify that the seller is
not liable for certain costs, an additional name must be added.

5.6. Export Procedure

When the exporter approaches custom house agent, CHA makes an offer in the
form of quotation as per the requirements of the exporter, addressing the
exporter stating all the shipment expenses with competitive rates of shipment.
Then the CHA demands for the invoice, packing list etc. after the submission
of the documents, agent files for the shipping bill.

The agent will get necessary information about the sailing from the shipping
times of EXIM to which subscribe. C&F will assist the exporters for space
booking. Depending upon the availability, GAC will book the desired space
and issue. The cargo shipped is insured either by the exporter or GAC agent on
the behalf of the exporter to cover the loss of goods from accidents, loss or
damage.

Once the goods are ready, shipper or agent should do the necessary packing
and marking. The exporter should tell the C&F agent details of the cargo, name
of the vessel etc and documents which are being sent to the agent.

On applying for the container for the shipper line, the line will issue the delivery
order from the containers from the yard. On applying for the container, the agent
may demand for inspection of the container before loading. After certifying the
container, the liner issues the line seal.
Once the container is released from the transport company, vehicles take the
container to the premises or to the warehouse of the exporter or agent for
stuffing.

The trailer when reaches the gateway of the wharf will require the wharf ticket,
on paying necessary dues of vehicle entry, container enters the port. The agent
must apply to the shed superintendent for permitting the cargo into the port and
also for the shed to keep the containers before loading. Customer examiner
examines the document and appraises the value. On assessing the value of cargo,
the customs authorities assess the duty to be paid for the goods for shipment.
Then the forwarding agent presents the documents to the shed department of the
port and obtains carting order bringing the export cargo to the transit shed for
physical examination by the dock appraiser and for the shipment. The dock
appraiser records the examination report and makes “let Export” endorsement on
the duplicate copies of the shipping and handover it to the forwarding agents
along with the other document to presented to the preventive officer of the
customs department and the officer issues “Allowed for Shipment” if satisfied.
The customs on receiving the request from the agent for shipping bill, initially issues the Checklist
with reference to the documents submitted for CHA’s certification. The shipping bill is issued by
the appraiser. After the goods are loaded on board of the vessel, the forwarding agent makes the
payment of the port charges and takes delivery of the documents. The master finally loads the
container to the vessel.
The endorsed documents are presented to the GAC for the issue of Bill of
Lading. The CHA prepares a format of the B/L and submits to the line. The line
on the basis of the format presented, issues the original and endorses the other
document. After the shipment of the goods, CHA has to apply for the
certificate of origin at the chamber of commerce. The CHA prepares the Export
General Manifest to the concerned line.

Terms of shipment include FOB, C&F, CIF etc. of the freight is not received
even after the goods reaches the destination port, GAC informs the delivery
agents not to take the delivery of the goods.
5.7. Import Procedure

After making necessary enquiry, consignee contacts GAC for the clearing and
documentation process. Cargo arrival notice is issued by the shipping line at the
destination to GAC requesting to present the original B/L after payment of all
relevant duty and charges and to arrange the clearance of cargo, storage charges
etc. will be charged on the importer. GAC informs the consignee through the
importer quotation. If the bill of lading has not arrived, GAC, who is the
shipping agent, issues the Letter for undertaking to the shipment line requesting
to issue the goods to the prescribed consignee without showing the original B/L.

After the customs inspection and assessment of duty, validity of the cargo is
certified. On issues of the delivery orders, GAC has to ensure that freight
charges are paid.

The customs import duty payment is made to Cochin Port Trust Branch. Before
discharging the goods to private bonded warehouse, GAC requests the
permission of Asst, Commissioner of Customs to post an officer to escort the
cargo to the bonded warehouse for custom inspection for the stuffing the goods.
GAC also makes request the Terminal Manager for examination and discharge
of the containers for the stuffing, permitting the custom inspection outside the
terminal.

The trailers before the CHA takes the container from the port and is carried to
either to the importer’s private warehouse for the house consumption or to the
bonded warehouse of the customs(private) to bond the cargo without payment
of the duty, entrusting the B E for ware house and the port and line delivery
order.

After the stuffing the goods, B E for ex-bond is prepared by CHA and
forwarded the customs for original copy, which has to be produced to take the
delivery of goods from the bonded warehouse.

The import container has to be returned to the line at the container yard. The
surveyor inspects the condition of the container whether any damage have
occurred during the transit and issues the Equipment Interchange report on
behalf of the line, showing the position of the container. In case of any damage,
the line will claim damage from the importer.
Factory stuffing permission:
The granting of a single factory permit to all Customs channels instead of the
Customs Wise Permit channel is approved. The center is under the following
protections:

(i) An exporter is required to provide Customs with a list of Customs channels

to which he intends to ship his goods.

(ii) A Custom House permit issuing factory logging permit must keep a proper
record of such permits, and create a unique product number for each of those
permits.

(iii) The Custom House must distribute the factory full permit to all affected
House of Commons clearly indicating the name and contact details of the
Defending Officer / Inspector and the Custom House Superintendent
authorizing and the Central Intermediate Trade to simplify real-time
authentication, if required.

(iv) If any defects are noted in the sender, the Customs channel concerned. It
will notify the Waste House immediately after issuing the permit, which will
withdraw the permit, and notify all Custom Houses concerned.

Variation between declaration and physical examination

A list of checks and declaration and all original documents submitted with the Export Bill are
maintained by the relevant Auditor. In the event that there is a discrepancy between the declaration
in the Shipping Bill and the visual documents / inspection report, the analyst may mark the
Electronic Shipping Bill to the Assistant Commissioner / Deputy Commissioner for Exports and
send the visible documents and direct the sender to his agent or agent / agent. Deputy Commissioner
for Exports to resolve a dispute. In the event of a consignor's consignment of goods, the Shipping
Bill needs to be properly enforced. Where, however, the seller disagrees with the Department's view
the matter will be resolved in accordance with the principles of environmental justice.

Drawl of sample

When the Export Document orders that the samples be taken and inspected, the Transport Officer
may continue to draw two samples from the goods and enter the details and details of the testing
agency into the ICES / EDI system. There is no separate register for the recording dates of selected
samples. Three copies of the invitation will be prepared by the Customs Officer and signed by the
Customs Officer and the Appraising Officer.

On behalf of the Customs and Exporter or his agent. Disposal of three copies of the test invitation is
as follows;
(i) Original - to be sent with sample to testing center
(ii) Repetition - a copy of the culture to be kept with sample 2
(iii) Repeat three times - copy of seller
Stuffing/ loading of goods in containers:

The consignor or his agent must provide the Export copy of the Properties Shipping Bill The
reviewer allows "Allow Export to the steam agent who will then speak to the appropriate official
(Prohibition Officer) to approve the shipment. In addition, your loading of both boxed and bulk
goods should be done under Prevention Supervision.
The shipping container on board has entered the EDI system and authorized this information in a
copy of the Shipper other than the Shipping Bill. If there is a difference in the price / amount of
packaged containers / goods loaded on the ship the Superintendent (Docks) may comment on the
Shipping Bill in the EDI system and whether it needs to be amended or changed. Such a Shipping
Bill will not be pursued for the purpose of authorizing logging in Drawback / DEEC, until amended
accordingly. The Customs Preventive Officer who oversees the loading of the box and common
goods on the ship may authorize "Shipping to the Board" for imported copies of the Shipping Bill.
Approval authorization of goods is made after the issuance of a Let Export Order (LEO). Therefore,
there is no need for a separate permission to polish Customs. However, permission to load the
aircraft / ship will continue to be available.

Amendments

Any amendments / amendments to the checklist made after the issuance of the notice may be made
to the Service Center provided that the documents have not been submitted to the EDI system and
the Shipping Bill number has not been included.

Where adjustments are required after the production of the Shipping Bill number or after the goods
have been delivered.

In Export Dock, amendments will be made as follows:

(i) If goods are not approved "Let Export" amendments may be approved by the Assistant
Commissioner (Export).

(ii) Once the "Allow Export" order has already been issued, amendments may only be approved by
the Additional / Affiliate Commissioner for Export.

In both cases, after the approval of the amendments has been granted, the Assistant Commissioner
Deputy Commissioner (Export) may approve the amendments to the EDI system on behalf of
another Additional / Joint Commissioner.

Generation of Shipping Bills:

After the "Allow Export" order has been issued to the EDI system by the Inspector, the Shipping
Bill is produced in two copies namely, one copy of Customs, one copy of the seller (one copy of the
EP is produced after the EGM submission). Upon receipt of the printout the Analyst receives the
signatures of; the Chief Transport Officer and the CHA representative in both copies of the Export
Bill and inspection report. The Analyst then signs and stamps both copies of the Shipping Bill. The
analyst also signs and stamps the first and duplicate copy of the SDF and subsequently forwards the
copy of the Shipping and the original copy of the SDF with the original announcements to the
Export Department. Copy of the seller and the second copy of the SDF are returned to the exporter
or to his agent.

Shipping Bill:

1. Customs copy

2. Examination order

3. Exporter copy

4. Exchange control copy

5. Bank copy

Export General Manifest:

All shipping lines / agents are required to provide General Export Manifests, in accordance with the
Shipping Bill, to Customs electronically before shipping.

In addition to electronic EGM shipping lines require further installation of manual EGMs and a
copy of the Export Regulations to the Shipping Department where it will be entered in the register.
The shipping line may receive authorization indicating the date and time when the EGMs were
received by the Department of Export.

Electronic Declaration for Bills of Entry and Shipping Bills:

Regulations to the Entry Bill (Electronic Declaration), 2011 have been substituted for the Entry Bill
(Electronic Declaration) Regulations, 1995 to incorporate changes made to the Finance Act, 2011
and to authorize importers as such or exporters. it is possible. Accordingly, the Regulations to the
Shipping Bill (Electronic Declaration), 2011 are compiled in accordance with the statutory
provisions of Sections 17, 18 and 50 of the Shipping Act, 1962. Shipping Regulations are made or
modified by software or company software known as Citrix GAC.
 CHAPTER 6
FINDINGS, SUGGESTIONS AND CONCLUSION

6.1. Findings

 It uses the incoterm as EXW, FOB, CFR, and CIF mostly.

 The documentation paper works are simplified than the previous year.
 Through many documents prevail in documentation, only certain documents play a vital part
in the company.
 Friendly and competitive atmosphere at office.
 Face tight competition.
 GAC is committed to causing no harm to the environment.
 Full range of flexible services tailored to customers’ needs.
 Proven track records in serving diverse sectors with unique needs.
 Integrated global network providing logistics solutions at thousands of location worldwide.
 Half a century of Shipping, logistics and Marine experience.

6.2. Suggestions

 Company may try to make use of latest software for speedy disposal.
 The custom clearance for import and export is such a long procedure so it take time to clear, so
the employee must try to make their work on time and quick.
 If custom clearance done through online then it should be more simple.
 Time delay in manual clearance of export and import cargo can be avoided by EDI system.
 Periodic training facilities should be arranged to keep the personnel handling documents up to
date.

6.3. Conclusion

The study on Freight Forwarding Business has paved way to understand the various process and
various functions Freight Forwarding in an organization. GAC India is one of the leading agents in
India. GAC offers principles round the clock (24/7) comprehensive range of ship agency services
for any type of port calls, including attendance required in connection with vessel demolition and
ship to ship transfer etc.
So I would like to conclude the study in a well manner.
 CHAPTER 7
REFERENCES

 www.gacindia.com
 www.cochinport.com
 www.wikipedia.com
 Company’s previous files and record
CHAPTER 6