REPORT ON

POTA GLOBAL LOGISTICS (INDIA) PVT.LTD

REPORT DONE BY:

VARUN RAO (STUDENT OF CMR 2023-25)

I HAVE DONE MY INTERNSHIP IN POTA GLOBAL LOGISTICS OF 45 DAYS THIS REPORT
IS PREPARED BASIC ON MY KNOWLEDGE, WHAT I HAVE UNDERSTAND ABOUT THE
COMPANY WORKING PROCESS AND SUPPLYCHAIN AND LOGISTICS.
 INTRODUTION

● WHAT IS LOGISTICS?

Logistics means It is the moving of cargo from one place to other.

This ongoing process is called logistics.

Ways of cargo can be exported or imported are:

Throw: Air ways, Sea ways
transported throw sea ways. In case of emergence the air cargo is
needed for exporting or importing the medicines that has short life.
The product Is really needed then in the case the client chooses the
air cargo. It depends on the client necessity.

AIR IMPORT / AIR EXPORT / SEA IMPORT / SEA EXPORT

 ▶THE PERSON WHO EXPORTS GOODES FOR ONE
COUNTERY TO OTHER IS ALSO NAMED AS:

● Shipper
● Manufacturer
● Exporter
● Suppler
● Consignor
● Trader
● Seller

▶THE IMPORTER IS ALSO NAMED AS:

● Buyer
● Importer

WHAT IS CONSOLIDATOR IN LOGISTICS

Consolidated shipping is a method of shipping where a
consolidator combines individual LCL shipments from various shippers
into one full container shipment.
Consolidation is the process where a carrier or a shipping company
combines several smaller shipments into one full container. Ideally,
consolidation favours both the carrier and the shipper. In the case of the
carrier, it helps to reduce the cost of shipment and to make delivery of
goods quicker.

Even Pota logistics come under consolidator company.

WHAT IS FREIGHT FORWARDER IN LOGISTICS

A freight forwarder is a company that serves as an intermediary between

transportation companies that import and export goods and the businesses
that need them. Freight forwarders manage every aspect of the transportation
process, from storing goods before shipment to ensuring they make it through
customs.
Freight forwarding consists of strategic logistics planning and execution
for the international movement of goods, on behalf of shippers.
Specifically, a freight forwarder will carry out freight rate negotiations,
container tracking, customs documentation and freight consolidation,
among other tasks.

▶WHAT IS (LCL) AND (FCL) CARGO?

LCL - LESS THEN CONTAINER LOAD
FCL – FULL CONTAINER LOAD

▶WHO IS CHA (CUSTOMS HOUSE AGENT)

In India, a customs house agent (CHA) is licensed to act as an agent
for transaction of any business relating to the entry or departure of
conveyances or the import or export of goods at a customs station. CHAs
maintain detailed, itemized and up-to-date accounts. A CHA license may
be temporary or permanent.

WHAT IS CFS (CONTAINER FREIGHT STATION)

IT IS ALSO (CARGO FREIGHT STATION)
CFS (Container Freight Station) refers to a warehouse where goods
belonging to various exporters or importers are consolidated (grouped) or
deconsolidated (de grouped) before being exported or after being imported.
▶ WHAT IS C&F (COST AND FREIGHT)

It means that the seller must pay the costs and freight necessary to
bring the goods to a named port of destination and must also procure
marine insurance against the buyer's risk or loss to the goods during
the carriage. Description: C&F stands for cost and freight and is
always stated as C&F port of importation.

▶ WHAT IS LETTER OF CREDIT (LC)

Letter of Credit (LC) is an important document in the export logistics

process since it states payment terms between an exporter and
importer. Among the varied types of LCs, a Letter of Credit at Sight is
an important one. In an LC, banks serve as a bridge between the traders
to secure the transaction

▶ WHO IS CARRIER OR LINER

In the simplest of terms, a Carrier (also known as a shipping line) is an

entity who undertakes to perform, directly or indirectly the carriage of
cargo by sea, rail, road, air, inland waterway or a combination of these
modes, normally under a contract of carriage.
 ▶ WHAT IS (ACD) ADVANCE CARGO DECLARATION

IT IS ONLY APPLECABLE TO USA IF THE CARGO IS IMPORTED TO USA.

Advanced Cargo Declaration (ACD) is a customs regulation that requires
carriers or freight forwarders to submit detailed information about cargo
before it arrives at the destination country. This information includes:

1. Shipper and consignee details

2. Cargo description (including Harmonized System (HS) codes)
3. Weight and measurement
4. Value and tariff code
5. Country of origin and destination

The purpose of ACD is to enhance supply chain security, facilitate trade, and
improve customs risk assessment. By submitting cargo information in advance,
customs authorities can:

1. Identify potential security risks

2. Expedite clearance for low-risk cargo
3. Improve cargo targeting and inspection
4. Enhance trade statistics and data analysis

ACD is also known as Advance Cargo Information (ACI) or Pre-Arrival

Notification (PAN). It's an important aspect of international trade, ensuring
compliance with customs regulations and facilitating the smooth movement of
goods across borders.
 ▶ WHAT IS VGM (VERIFIED GROSS MASS)

[CONTAINER WEIGHT + CARGO WEIGHT]

Verified Gross Mass (VGM) is the combined weight of a container's tare
weight and the weight of the cargo, packaging and dunnage

- Weight of cargo
- Weight of container carrying cargo, including dunnage and bracing
- Weight of all packages and cargo items
- Weight of pallets, dunnage and other securing material

VGM was made mandatory by the International Maritime Organization (IMO)

in 2016 as part of the Safety of Life at Sea (SOLAS) to increase maritime
safety and reduce danger to cargo, containers and people involved in container
transport.

▶ WHAT IS HS CODE (HARMONIZED SYSTEM CODES)

HS Codes stand for Harmonized System Codes, which are numerical codes
used to classify traded products and figure out the taxes that need to be paid
on them. These codes are used by customs authorities around the world and
were developed by the World Customs Organization (WCO). The codes are
updated every five years and are used by many countries, including the United
States and India.
 ▶ WHAT IS CONTAINER IN LOGISTICS

A container is a sealed, rigid, reusable metal box used to hold goods that
require transport by vessel, truck or rail. The container must be built for
repeated use, easy to fill or empty and specially designated to facilitate the
carriage of goods without intermediate reloading.

▶ TYPES OF CONTAINERS

▶ General purpose container (also known as dry container)

▶ Flat rack container.
▶ Open top container.
▶ Double door container.
▶ High cube container.
▶ Open side container.
▶ ISO Reefer container.
▶ Insulated container.
▶ WHAT IS CWC
(CENTRAL WAREHOUSIN CORPORATING)

Central Warehousing Corporation (CWC) is a public-sector undertaking in

India that provides logistics support and warehousing facilities for the
storage of goods, commodities, and merchandise. CWC was established in
1957 under the Warehousing Corporations Act, 1962, and is headquartered
in New Delhi.

CWC offers a range of services, including:

- Warehousing and storage

- Inventory management
- Handling and transportation
- Packing and unpacking
- Customs clearance
- Quality control and inspection

CWC has a network of warehouses and storage facilities across India,

providing a safe and secure environment for the storage of goods. The
corporation serves various industries, including agriculture, commodities,
pharmaceuticals, and e-commerce, among others.

▶WHAT IS ICD
(INLAND CONTAINER DEPOT)

Inland Container Depot or ICD is a dry port located in an inland part of a

country that handles full and empty containers. These containers are moved
from ICD to a ship and vice versa via road or rail transport. An ICD is
recognized by customs and port authorities as an extended part of the sea
port.
▶WHAT IS CONTAINER FUMIGATION

Container fumigation controls any type of pest through an efficient, safe and
dry disinfection process, which is usually done by gas. The most commonly
used gases in the fumigation process are methyl bromide and phosphine.

USES: Container fumigation is the treatment of a commodity within a shipping

container or the container itself to eliminate the risk of pests or disease
from entering or leaving the country or state.
▶ WHAT IS BILL OF LANDING

A bill of lading (BOL) is a legal document that outlines the details of a

shipment, including the type, quantity, and destination of the goods being
transported. It serves as a contract between the shipper and the carrier, and
is often used as a proof of ownership and receipt of goods.

A typical bill of lading includes information such as:

- Shipper and consignee (sender and receiver) details

- Description and weight of the goods
- Packaging and container details
- Shipping route and mode of transport
- Departure and arrival dates
- Terms and conditions of the shipment
- Signatures and stamps of the carrier and shipper

Bills of lading are commonly used in various modes of transportation,

including trucking, shipping, and air freight. They play a crucial role in
ensuring that goods are delivered safely and efficiently, and that all parties
involved in the shipping process are held accountable.
 ▶ TYPES OF BILLS OF LANDING

1. Clean bill of lading: A clean bill of lading is issued by the shipping company to
the shipper without any declaration of defects in the goods or packages.

2. Received for shipment bill of lading: This is issued by a carrier as evidence of

receipt of goods for shipment.

3. Through bill of lading: This type of bill of lading is a cargo receipt, a carriage
contract and sometimes serves as the title for the goods.

4. Container bill of lading: This document gives information about goods

delivered in a safe container or containers from one port to another.

5. House bill of lading: Issued by an Ocean Transport Intermediary, this

document acknowledges receipt of shipped goods issued to the suppliers when
the cargo is received.

6. Surrender bill of lading: This is a bill of lading that has been surrendered.

7. Ocean bill of lading: This type of bill of lading allows a shipper to transport
cargo over oceans.

8. Switch bill of lading: This is the second set of bills issued by a carrier as a
substitute for the original bill issued at the time of shipment.
9. Order bill of lading: This type of bill of lading is used for shipments where
payment has not been made in advance.

10. Charter party bill of lading: This type of bill of lading is a bill that
incorporates the terms of a charter party.

11.Combined transport or multimodal bill of lading: This type of bill of lading

involves different modes of transport.

12. Caused bill of lading: This type of bill of lading is issued when the
cargo is damaged or shows a shortfall
▶ WHAT IS INVOICE AND PACKING LIST

Invoice and Packing List are two essential documents used in

international trade and shipping:

Invoice:

- A commercial document issued by the seller to the buyer

- Details the products or services sold, quantities, prices, and
payment terms
- serves as a request for payment
- Typically includes:
- Seller and buyer information
- Date and invoice number
- Description of goods or services
- Unit prices and total amount
- Payment terms and method
- Taxes and other charges
Packing List:
- A document that accompanies the shipment and provides detailed
information about the contents
- Lists the items packed, quantities, weights, and measurements
- Used to verify the accuracy of the shipment and ensure all items
are accounted for
- Typically includes:
- Shipper and consignee information
- Date and packing list number
- Itemized list of goods, including:
- Description
- Quantity
- Weight
- Measurements
- Package numbers and markings
- Special instructions or handling requirements

Both documents are crucial for:

- Customs clearance
- Payment processing
- Inventory management
- Shipping and logistics
- Auditing and accounting purposes
In international trade, accurate and complete invoices and packing
lists help facilitate smooth transactions, reduce errors, and ensure
compliance with regulations.
WHAT IS SHIPPING BILL

A Shipping Bill, also known as a Bill of Lading, is a legal document issued

by a carrier (shipping line, freight forwarder, or logistics company) to a
shipper (exporter) that confirms the receipt of goods for transportation. It
serves as a contract between the parties, outlining the terms and
conditions of the shipment.

A Shipping Bill typically includes:

1. Shipper and consignee information

2. Description of goods, including weight, measurements, and packaging
details
3. Shipping details, such as vessel name, voyage number, and
departure/arrival ports
4. Terms and conditions of the shipment, including payment terms and
liability clauses
5. Signature of the carrier or their agent

The Shipping Bill is used for various purposes:

1. Confirmation of goods receipt

2. Proof of shipment
3. Title document for the goods
4. Evidence of the contract of carriage
5. Customs clearance and compliance
6. Insurance purposes
7. Payment and financing arrangements

There are different types of Shipping Bills, including:

1. Straight Bill of Lading

2. Negotiable Bill of Lading
3. Sea Waybill
4. Air Waybill
5. Multimodal Bill of Lading In summary, a Shipping Bill is a critical
document in international trade, serving as a contract and proof of
shipment, and playing a vital role in the logistics and financing of global
commerce.
▶ WHAT IS INSURANCES COST
Insurance costs refer to the amount of money paid by a policyholder (such as
an importer or exporter) to an insurance company to cover potential risks or
losses related to their shipment.

The cost of insurance typically depends on various factors, including:

1. Type of insurance (e.g., marine, cargo, liability)

2. Value of the shipment
3. Mode of transportation (e.g., sea, air, land)
4. Destination and origin countries
5. Nature of the goods being shipped
6. Risk level (e.g., high-value, hazardous, or sensitive cargo)
7. Policy limits and deductibles
8. Insurance provider and their rates

Insurance costs can be expressed as a percentage of the shipment value,

typically ranging between 0.5% to 5% or more, depending on the specific
circumstances.

For example, if the shipment value is $100,000, the insurance cost might be:

- 1% of $100,000 = $1,000
- 2% of $100,000 = $2,000
- 3% of $100,000 = $3,000

It's important to carefully consider the insurance costs and coverage options
to ensure adequate protection against potential risks and losses.
▶ WHAT IS IEC (IMPORT EXPORT CODE)

An Importer -Exporter Code (IEC) is a key business identification

number which mandatory for export from India or Import to India. No
export or import shall be made by any person without obtaining an IEC
unless specifically exempted.

- IEC is a 10-digit code issued by the Director General of Foreign Trade

(DGFT) required for import/export business in India.
- IEC is required for customs clearance, banking transactions and export
benefits.
- Registration involves filling an application, submitting documents and
making a payment.
- The code has lifetime validity, offers business expansion and benefits, and
easy processing.
- IEC is not mandatory for all GST-registered traders and certain government
institutions.
- IEC assists in taking services or products to the global market and growing
businesses.
- Companies could avail several benefits of their imports/exports from the
DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC
registration.
▶ WHAT IS DGFT
(Directorate General of Foreign Trade)

Directorate General of Foreign Trade (DGFT) organisation is an attached

office of the Ministry of Commerce and Industry and is headed by Director
General of Foreign Trade.

- Formulating and implementing the Foreign Trade Policy

- Issuing Importer-Exporter Codes (IEC)
- Providing licenses for export of restricted items
- Offering benefits and incentives for exports under various schemes
- Monitoring and regulating imports and exports
- Promoting India's exports and trade relations with other countries

▶ WHAT IS CBM

CBM stands for cubic meters, which is a metric unit of measurement that
describes the volume of a package. CBM is calculated by multiplying the
dimensions of a package, including the length, width and height. The formula
for CBM is as follows:

CBM = length x width x height

The CBM may also be used to calculate the occupied weight and volume
percentage of products inside a shipping container.
▶ WHAT IS DG CARGO

DG Cargo is short for Dangerous Goods Cargo, which refers to the

transportation of items that could pose a risk to the safety of aircraft,
persons, or environment. Some examples of dangerous goods include:

- Car engines
- Batteries
- Engine oils
- Spices
- Dry ice
- Pressured tanks
- Lithium batteries for laptops
- Spray cans
- Paintings

● Dangerous goods are classified into different classes and are

assigned UN numbers:
Dangerous goods are classified into nine classes based on their hazardous
properties, and each class is assigned a specific UN number. Here are the nine
classes:
1. Class 1: Explosives (UN numbers 0004-0500)
2. Class 2: Gases (UN numbers 1001-3531)
3. Class 3: Flammable liquids (UN numbers 1005-3473)
4. Class 4: Flammable solids (UN numbers 1006-3532)
5. Class 5: Oxidizers and organic peroxides (UN numbers 1007-3533)
6. Class 6: Toxic and infectious substances (UN numbers 1008-3534)
7. Class 7: Radioactive materials (UN numbers 1009-3535)
8. Class 8: Corrosive substances (UN numbers 1010-3536)
9. Class 9: Miscellaneous dangerous goods (UN numbers 1011-3537)
Each class has specific packaging, labeling, and handling requirements to
ensure safe transportation.
▶ NON - DG CARGO

Non-DG cargo refers to cargo that does not contain dangerous goods, i.e.,
goods that are not hazardous or harmful to people, aircraft, or the
environment. Non-DG cargo is typically considered "general cargo" and
includes items such as:

o Apparel
o Electronics
o Furniture
o Machinery
o Vehicles
o Foodstuffs
o Pharmaceuticals
o Perishables
o Construction materials

Non-DG cargo is not subject to the same strict regulations and handling
requirements as dangerous goods, and is typically transported via standard
cargo handling procedures.

For non-DG cargo, the UN number is typically "NOT RESTRICTED" or "NRR"

(No UN Number Required). This indicates that the cargo does not contain
dangerous goods and is not subject to the dangerous goods regulations.

In some cases, a non-DG cargo may still have a UN number assigned to it, but
it would be a "non-hazardous" UN number, such as:

o UN 9999: Miscellaneous goods (non-hazardous)

o UN 3077: Environmentally hazardous substances, solid, no’s
(non-hazardous)
o UN 3333: Goods not otherwise specified (non-hazardous)

These UN numbers are used for statistical and customs purposes only and do
not indicate that the cargo is dangerous.
● DG CARGO:

▶ WHAT ARE INCOTERMS

Incoterms, also known as International Commercial Terms, are a series of
three-letter trade terms that define the responsibilities of buyers and sellers
in the arrangement of shipments and the transfer of liability involved at
various stages of international commercial transactions ¹. The main
categories of Incoterms include:
1. EXW – Ex Works
2. FCA – Free Carrier
3. CPT – Carriage Paid To
4. CIP – Carriage and Insurance Paid to
5. DPU – Delivered At Place Unloaded
6. DAP – Delivered At Place
7. DDP – Delivered Duty Paid
8. FAS – Free Alongside Ship
9. FOB – Free on Board
10.CFR – Cost and Freight
11. CIF – Cost, Insurance and Freight
Here are the Incoterms with brief explanations:

1. EXW (Ex Works): Seller makes goods available at their location, buyer
responsible for transportation and costs.

2. FCA (Free Carrier): Seller delivers goods to a specified carrier, buyer

responsible for transportation and costs beyond that point.

3. CPT (Carriage Paid To): Seller pays for transportation to a specified

destination, buyer responsible for insurance and costs beyond that point.

4. CIP (Carriage and Insurance Paid to): Seller pays for transportation and
insurance to a specified destination, buyer responsible for costs beyond
that point.

5. DPU (Delivered at Place Unloaded): Seller delivers goods to a specified

location, unloads them, and bears all costs and risks until that point.

6. DAP (Delivered at Place): Seller delivers goods to a specified location,

buyer bears all costs and risks from that point.

7. DDP (Delivered Duty Paid): Seller delivers goods to a specified location,

pays all costs, duties, and taxes, and bears all risks until that point.

8. FAS (Free Alongside Ship): Seller delivers goods alongside a ship, buyer
responsible for loading and all costs beyond that point.

9. FOB (Free on Board): Seller delivers goods on board a ship, buyer

responsible for all costs beyond that point.
 10. CFR (Cost and Freight): Seller pays for transportation to a specified
port, buyer responsible for insurance and costs beyond that point.

11.CIF (Cost, Insurance and Freight): Seller pays for transportation and
insurance to a specified port, buyer responsible for costs beyond that point.

These Incoterms clarify the responsibilities of buyers and sellers,

helping to avoid misunderstandings and disputes in international
trade.
▶ WHAT IS DRAW-BACK IN EXPORT

Drawback is a government program that allows exporters to claim a refund of

certain duties and taxes paid on imported goods that are:
1. Re-exported in the same state
2. Processed or manufactured into a different product and then exported
3. Destroyed or wasted during manufacturing

The purpose of drawback is to encourage exports by alleviating some of the

costs associated with importing goods that are ultimately exported.

There are different types of drawback programs, including:

1. Duty drawback
2. Tax drawback
3. Merchandise processing fee (MPF) drawback
4. Harbor maintenance fee (HMF) drawback

To claim drawback, exporters must follow specific procedures and submit

required documentation, such as:
1. Export declarations
2. Import declarations
3. Proof of payment of duties and taxes
4. Proof of exportation

Drawback can be a valuable benefit for exporters, but the rules and
regulations can be complex, so it's essential to consult with a trade attorney
or expert to ensure compliance.
▶ WHAT IS TELEX BILL OF LANDING

A telex bill, also known as a telegraphic transfer bill or TT bill, is a document

used in international trade to confirm payment details between banks.

When an importer wants to pay an exporter through a bank, the importer's

bank sends a telex bill to the exporter's bank, specifying:

1. Payment amount
2. Currency
3. Payment terms (e.g., sight payment or usance payment)
4. Beneficiary's name (exporter)
5. Beneficiary's bank account details

The telex bill serves as a notification to the exporter's bank to expect payment
from the importer's bank. It also provides instructions for the exporter's bank
to credit the payment to the exporter's account.

Telex bills are commonly used in international trade transactions, especially

when the buyer and seller are in different countries. They help facilitate
secure and efficient payment processing between banks.

With the advancement of technology, telex bills are now mostly electronic, and
the term "telex" is largely a relic of the past, but the concept remains an
essential part of international trade finance.
▶ WHY DO EXPORTER INVOLVE BANK IN HIS TREAD

Exporters involve banks in international trade for several reasons:

1. Secure Payment: Banks ensure payment from importers, reducing the risk
of non-payment.
2. Financing: Banks provide financing options, like letters of credit, to help
exporters receive payment earlier or finance production and shipment.
3. Risk Management: Banks help manage risks like currency fluctuations,
political instability, and non-payment.
4. Documentation: Banks facilitate trade documentation, like letters of credit,
bills of lading, and invoices.
5. Compliance: Banks ensure compliance with regulatory requirements, like
anti-money laundering and know-your-customer regulations.
6. Creditworthiness: Banks assess importers' creditworthiness, giving
exporters confidence in their ability to pay.
7. Streamlined Process: Banks simplify the export process, reducing
administrative burdens.
8. Access to International Networks: Banks have global networks, making it
easier for exporters to access new markets and customers.
9. Trade Expertise: Banks have trade finance specialists who can provide
guidance and support throughout the export process.
10. Reduced Risk of Fraud: Banks help prevent fraud by verifying importers'
credentials and ensuring genuine transactions.

By involving banks, exporters can mitigate risks, access financing, and

streamline the export process, making international trade more efficient and
secure.
▶ WHAT IS CERTIFICATE OF ORIGIN (CO)

A Certificate of Origin (CO) is a document that certifies the country of

origin of goods being exported. It is typically issued by a government agency,
chamber of commerce, or other authorized organization in the exporting
country.

The CO contains information such as:

1. Exporter's name and address

2. Importer's name and address
3. Description of goods
4. Harmonized System (HS) code
5. Country of origin
6. Date of export
7. Signature and stamp of the issuing authority

The CO serves several purposes:

1. Trade compliance: It helps customs authorities determine the origin of

goods and apply relevant tariffs, taxes, and regulations.
2. Tariff benefits: It enables exporters to claim preferential tariffs or tax
exemptions under free trade agreements (FTAs) or other trade agreements.
3. Product safety and regulation: It helps ensure that goods meet safety and
regulatory standards in the importing country.
4. Statistics and trade data: It provides data for trade statistics and analysis.

There are different types of COs, including:

1. Generalized System of Preferences (GSP) CO

2. Free Trade Agreement (FTA) CO
3. EUR.1 CO (for exports to the European Union)
4. Other special COs (e.g., for textiles, chemicals, or specific industries)

The CO is usually required by customs authorities, importers, or banks, and is

an essential document in international trade.
▶ WHAT IS LEETER OF CRIDIT IN IMPORT AND EXPORT

A Letter of Credit (L/C) is a financial instrument issued by a bank or

financial institution that guarantees payment to a seller upon presentation of
specific documents, such as invoices, bills of lading, and certificates of origin.
It provides a secure way for buyers and sellers to conduct international trade
by ensuring that payment is made only when the goods or services are
delivered as agreed upon.

Here are the key parties involved in a Letter of Credit:

1. Buyer (Applicant): Requests the Letter of Credit to be issued by their bank.

2. Bank (Issuing Bank): Issues the Letter of Credit on behalf of the buyer.
3. Seller (Beneficiary): Receives the Letter of Credit and presents documents
to the bank for payment.
4. Advising Bank: Notifies the seller of the Letter of Credit and verifies the
documents.

The Letter of Credit process:

1. The buyer and seller agree on the terms of the sale.

2. The buyer requests their bank to issue a Letter of Credit.
3. The bank issues the Letter of Credit and sends it to the seller's bank.
4. The seller presents the required documents to the bank.
5. The bank verifies the documents and pays the seller.
6. The bank then seeks reimbursement from the buyer.

They can be revocable or irrevocable, and there are different types of Letters
of Credit, such as:

- Documentary Credit
- Standby Letter of Credit
- Revolving Letter of Credit
- Back-to-Back Letter of Credit
- Red Clause Letter of Credit
Letters of Credit provide a secure and reliable way for buyers and sellers to
conduct international trade, and are an essential tool in facilitating global
commerce
 ▶ WHAT IS THE TOTAL WEIGHT AND CAPACITY OF LOADING
CARGO IN CONTAINER

The weight of a container after stuffing (loading) depends on various

factors, including:

1. Container size and type

2. Cargo weight and density
3. Stowage factor (how efficiently the cargo is packed)
4. Maximum payload capacity (MPW) of the container

Here are some general guidelines for the maximum weight of a container
after stuffing:

- 20ft container:

- Maximum payload capacity (MPW): 24,000-28,000 kg (52,900-61,700 lbs.)

- Typical cargo weight: 18,000-22,000 kg (39,700-48,500 lbs.)
- 40ft container:

- Maximum payload capacity (MPW): 26,000-30,000 kg (57,300-66,100 lbs.

)
- Typical cargo weight: 22,000-26,000 kg (48,500-57,300 lbs.)

- 45ft container:

- Maximum payload capacity (MPW): 28,000-32,000 kg (61,700-70,500 lbs.

)
- Typical cargo weight: 24,000-28,000 kg (52,900-61,700 lbs.)

Note: These values are approximate and may vary depending on the
container type, cargo density, and other factors.

It's important to ensure that the container is not overloaded, as this can
lead to safety issues and potential damage to the container, cargo, or
vessel. Always check the container's maximum payload capacity and
calculate the total weight of the cargo to ensure safe and compliant
loading.
 ● The number of boxes that can be loaded in a container depends on various
factors, including:

1. Container size: 20ft, 40ft, 45ft, etc.

2. Box size: Length, width, and height of each box.
3. Box weight: Heavy boxes may reduce the total number that can be loaded.
4. Stacking ability: Some boxes may be stackable, while others may not.
5. Container payload capacity: The maximum weight of cargo that the
container can carry.

Here are some general guidelines for loading boxes in containers:

- 20ft container:
- 10-12 pallets (depending on pallet size)
- 20-24 boxes (assuming 40"x40"x40" boxes)
- 40ft container:
- 20-24 pallets (depending on pallet size)
- 40-48 boxes (assuming 40"x40"x40" boxes)
- 45ft container:
- 24-28 pallets (depending on pallet size)
- 50-60 boxes (assuming 40"x40"x40" boxes)

Keep in mind that these estimates vary depending on the specific box and
container dimensions, and the loading configuration. To maximize container
utilization, it's essential to optimize box placement and stacking.

Remember to also consider the container's weight capacity and the total weight
of the boxes to ensure safe transportation.
 ▶ Domestic and international taxes charged on import and export
shipments include:

Domestic Taxes:

1. Sales Tax: Levied on the sale of goods within a country.

2. Value-Added Tax (VAT): Charged on the value added to goods at each stage of
production and distribution.
3. Goods and Services Tax (GST): A comprehensive tax on goods and services.
4. Excise Tax: Imposed on specific goods, like fuel, tobacco, and alcohol.

International Taxes:

1. Customs Duty: Levied on imported goods, based on their value, weight, or

volume.
2. Import VAT/GST: Charged on imported goods, similar to domestic VAT/GST.
3. Export Tax: Imposed on exported goods, though less common.
4. Withholding Tax: Deducted from payments to foreign entities, like dividends or
royalties.

Other charges may include:

1. Customs Clearance Fees
2. Documentation Fees
3. Inspection Fees
4. Port Charges
5. Freight Forwarder Fees
These taxes and charges vary depending on the country, type of goods, and
trade agreements. Understanding these taxes is crucial for accurate cost
calculation and compliance with tax regulations.
 ● Import Taxes and Charges:

1. Customs Duty: Levied on the value of imported goods

2. Import VAT/GST: Charged on the value of imported goods
3. Excise Tax: Imposed on specific goods like fuel, tobacco, and alcohol
4. Customs Clearance Fees: Charged by customs brokers for clearance services
5. Documentation Fees: Charged for preparing and processing import documents
6. Inspection Fees: Charged for inspecting goods at the port of entry
7. Port Charges: Charged for services like storage and handling at the port

● Export Taxes and Charges:

1. Export Tax: Imposed on the value of exported goods (less common)

2. Export VAT/GST: Charged on the value of exported goods (in some countries)
3. Customs Clearance Fees: Charged by customs brokers for export clearance
services
4. Documentation Fees: Charged for preparing and processing export documents
5. Freight Forwarder Fees: Charged for services like logistics and shipping

Note: Taxes and charges vary depending on the country, type of goods, and trade
agreements. It's essential to consult with a customs broker or trade expert to
ensure accurate calculation and compliance with tax regulations.
 [INFORMATION ON AIR CARGO]

WHY WE USE AIR WAYS TO EXPORT OR IMPORT GOODS

It offers a fast and reliable way to fly goods across long distances. The downside to air cargo
is its high costs and limited capacity, but that doesn't stop it from being one of the fastest,
most secure, and most efficient ways of transporting goods. The benefits of using air cargo
outweigh its drawbac
Importing and exporting air cargo involves transporting goods via air carriers between
countries or regions. Here's some information on air cargo import and export processe

Air Cargo Export:

1. Export Documentation:
o Commercial Invoice: Details the goods being exported, their value, and
transaction terms.
o Export License: Required for certain goods and destinations.
o Customs Declaration: Documentation declaring goods for export.
o Air Waybill (AWB): Contract between shipper and carrier detailing shipment
terms.
2. Packaging and Labelling:
o Goods must be securely packaged and labelled according to international
standards.
o Dangerous goods require special handling and documentation (e.g., hazardous
materials).
3. Customs Clearance:
o Shippers must comply with export regulations of both origin and destination
countries.
o Exporter or freight forwarder manages customs clearance processes.
4. Cargo Handling:
o Cargo is processed through airport cargo terminals.
o Loading procedures adhere to safety and security protocols.
5. Freight Forwarders and Carriers:
o Freight forwarders arrange logistics, customs clearance, and documentation.
o Airlines (carriers) transport cargo via scheduled or chartered flights.

Air Cargo Import:

1. Import Documentation:
o Import License: Depending on goods and country regulations.
o Customs Declaration: Declaration of imported goods.
o Bill of Lading: Document issued by carrier acknowledging receipt of goods.
2. Customs Clearance:
o Importer must pay duties and taxes based on goods' classification.
o Customs procedures ensure compliance with import regulations.
3. Cargo Handling:
o Unloading, inspection, and transfer of goods to customs clearance areas.
o Cargo stored in bonded warehouses pending customs clearance.
4. Delivery and Distribution:
o Goods are released after customs clearance.
o Transported to final destination via distribution networks.
5. Regulations and Compliance:
o Adherence to international trade agreements, tariffs, and customs
regulations.
o Compliance with import/export controls, including sanctions and embargoes.
Key Players in Air Cargo:

● Airlines: Provide air transport services for cargo.

● Freight Forwarders: Manage logistics and documentation for exporters and
importers.
● Customs Authorities: Enforce import/export regulations and conduct inspections.
● Shippers and Consignees: Senders and receivers of cargo, responsible for
compliance and coordination.

Challenges and Considerations:

● Security: Ensuring cargo safety and preventing illegal trafficking.

● Timeliness: Meeting delivery deadlines and schedules.
● Costs: Freight rates, customs duties, and handling fees impact profitability.
● Documentation: Accuracy and completeness are crucial to avoid delays and penalties.

Managing air cargo import and export requires coordination among multiple stakeholders
to ensure efficient and compliant movement of goods across international borders.

"Dangerous Goods" (DG) are substances or articles that pose a risk to health, safety,
property, or the environment when transported by air. These goods are classified based on
the type and degree of risk they pose, and they require special handling, packaging,
labelling, and documentation to ensure safety during transportation. Here's an overview of
the classes of dangerous goods typically transported by air:

Classes of Dangerous Goods (ICAO/IATA Classification):

1. Class 1: Explosives
o Substances or articles that can cause an explosion or release of gas with
significant heat, light, or sound.
2. Class 2: Gases
o Compressed, liquefied, or dissolved gases, including flammable,
non-flammable, and toxic gases.
3. Class 3: Flammable Liquids
o Liquids with a flash point of 60.5°C (141°F) or lower, which can ignite and
sustain combustion.
4. Class 4: Flammable Solids; Substances Liable to Spontaneous Combustion;
Substances Which, in Contact with Water, Emit Flammable Gases
o Subdivided into:
■ Class 4.1: Flammable solids (e.g., matches, powders).
■ Class 4.2: Substances liable to spontaneous combustion (e.g., certain
types of oils).
■ Class 4.3: Substances which, in contact with water, emit flammable
gases (e.g., sodium).
 5. Class 5: Oxidizing Substances and Organic Peroxides
o Substances that release oxygen or other oxidizing substances, enhancing the
combustion of other materials.
6. Class 6: Toxic and Infectious Substances
o Substances harmful to human health, including toxic chemicals and
infectious materials.
7. Class 7: Radioactive Material
o Materials emitting ionizing radiation, requiring special handling due to
radiation hazards.
8. Class 8: Corrosives
o Substances that can cause severe damage to living tissue or materials
through chemical reaction.
9. Class 9: Miscellaneous Dangerous Goods
o Substances or articles not covered by other classes but still pose a risk
during transport (e.g., environmentally hazardous substances).

Handling Requirements:

● Packaging: Specific packaging requirements based on the nature of the dangerous

goods.
● Labelling and Marking: Clear identification labels and markings indicating the
nature of the contents and associated risks.
● Documentation: Detailed documentation (e.g., Dangerous Goods Declaration, Shipper's
Declaration) to inform carriers and authorities about the contents and handling
requirements.
● Training: Personnel involved in the transportation of dangerous goods must be
trained and certified according to international regulations (e.g., ICAO Technical
Instructions, IATA Dangerous Goods Regulations).

Regulations and Compliance:

● ICAO (International Civil Aviation Organization) and IATA (International Air

Transport Association) provide guidelines and regulations governing the
transportation of dangerous goods by air.
● National regulatory authorities (e.g., FAA in the United States, EASA in Europe)
enforce these regulations to ensure safety and security in air transportation.

Handling dangerous goods in air cargo requires strict adherence to these classifications
and regulations to mitigate risks and ensure the safety of passengers, crew, and the
environment.
Exporting cargo by air involves several key steps that logistics companies
typically manage to ensure efficient and compliant transportation of goods.
Here's a detailed process involved in exporting cargo by air through a
logistics company:

1. Pre-Shipment Planning and Coordination

1. Customer Requirements: Understand the customer's needs, including cargo type,

destination, urgency, and any special handling requirements (e.g.,
temperature-sensitive goods, dangerous goods).
2. Quotation and Booking: Provide the customer with a quotation including air freight
rates, handling charges, and other applicable fees. Once approved, book the cargo
space on an appropriate flight.
3. Documentation Preparation: Initiate and prepare necessary export documentation:
o Commercial Invoice: Details the goods, their value, and transaction terms.
o Packing List: Inventory of all items in the shipment.
o Export License or Permit: If required for specific goods or destinations.
o Dangerous Goods Declaration: For hazardous materials, if applicable.
o Air Waybill (AWB): Document serves as the contract of carriage between
shipper and carrier.

2. Cargo Handling and Preparation

1. Packaging: Ensure goods are appropriately packed and labeled according to

international standards and airline requirements. This includes using suitable
materials to protect goods during transit.
2. Labelling and Marking: Affix labels indicating handling instructions, special
requirements (e.g., "Fragile," "Handle with Care"), and any hazardous materials
warnings for dangerous goods.
3. Customs Compliance: Verify that all export customs requirements are met,
including any necessary inspections or approvals.

3. Customs Clearance and Documentation

1. Customs Declaration: Submit the necessary export declaration and documentation to

customs authorities for clearance. This includes verifying the accuracy of
information provided and ensuring compliance with export regulations.
2. Security Screening: Cargo may undergo security screening processes to ensure
safety and compliance with aviation security regulations.

4. Transportation and Shipment

1. Delivery to Airport: Transport the prepared cargo to the airport's cargo terminal or
warehouse for processing.
2. Check-In and Acceptance: Present the shipment to the airline's cargo handling team
for check-in and acceptance. This involves verifying documentation, weight and
dimensions of the cargo, and compliance with airline regulations.
3. Loading: Cargo is loaded onto the aircraft according to loading procedures, ensuring
safety and proper distribution of weight.
5. Post-Departure Activities

1. Tracking and Monitoring: Monitor the shipment's progress using tracking systems
provided by the airline or through the logistics company's own tracking tools.
2. Documentation Handling: Manage any additional documentation or notifications
required during transit, such as changes in flight schedules or unforeseen events.

6. Arrival and Delivery

1. Customs Clearance at Destination: Coordinate with the consignee or local agents to

ensure prompt customs clearance at the destination airport.
2. Transportation to Final Destination: Arrange for onward transportation from the
airport to the final delivery location, either directly or through local distribution
networks.
3. Delivery Confirmation: Confirm delivery with the consignee and ensure all
necessary documentation is completed and provided.

Key Considerations:

● Regulatory Compliance: Adherence to international trade regulations, including

customs procedures and documentation requirements.
● Timeliness: Meeting deadlines and ensuring efficient transit to minimize delays.
● Communication: Clear communication with all stakeholders involved in the export
process, including customers, carriers, and customs authorities.
● Risk Management: Mitigating risks associated with transportation, such as security
threats or unexpected delays.

Managing the export of cargo by air involves careful planning, coordination, and compliance
with international regulations to ensure a smooth and successful shipment. Logistics
companies play a crucial role in navigating these complexities to deliver goods safely and
efficiently to their destinations.
 INFORMATION OF POTA GLOBL LOGISTICS PRIVATE LIMITED

HISTORY

Established in 2007 at Chennai our principal business strategy to develop

and improve the global logistics.

● TOP Management of Bangalore Branch

CEO/Director : Mr. K . Prarabakaran

.
Branch Manager : Mr. Balamurugan. C

Department Heads :

Export Manager : Mr. Ganesh . R

Import Manager : Ms. Lekha . P

Customer Service Representative : Ms. Nandini

Marketing Department : Export : Mr. Balamurugan / Mr. Devanesan

Import : Mr. Ravichandran

Operations Department : Mr. Ravidhara / Mr. Arun Kumar

.
Finance & Accounting : Mr. Murali Dharan

Branches : Chennai/Delhi/Mumbai/Hydedarabad/Coimbatore/Karur/
Cochin/Ahemadabad.
Imagine Capture by me in the Internship program :

(CWC)

(ICD)