Types of Cargo Handling

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The Cargo to be handled in different ways. It may be as follows. 

Dry Bulk Shipping (Bulk Carriers) 

The principal dry bulk cargoes carried in merchant ships are: iron ore, coal, phosphates, bauxite, and grain. These are all low value commodities and must therefore be transported as cheaply as possible. Transportation costs for dry bulk commodities are often less Bulk carriers are usually large vessels designed both to carry full cargoes and, when necessary, to make return voyages to loading ports without any cargo.

Bulk Carriers are designed to carry bulk solids. Some bulk carriers are multi-purpose, while others are specially adapted to carry dense cargoes like iron ore, or lighter cargoes like wood chips. They also have substantial water ballast capacity so that they can proceed to sea safely after discharging their cargo. Combination carriers, ore/oil and ore/bulk/oil carriers can carry either bulk solids or bulk liquids. The bulk carriers included as salt, wheat, rice, and coal.

Bulk Oil and Gas Shipping (Tankers)

Tankers carried mainly refined oils from producing areas. crude oil is now transported in huge quantities from the world’s major producing areas Most of it is carried in VLCCs or ULCCs, ultra large crude carriers, which are the largest tankers But products like diesel oil, petrol, and paraffin are now usually transported from refineries in industrialized countries to coastal storage and distribution centers.

International trade in liquefied gases has grown substantially since the 1960s. Many LNG (methane) and LPG (butane and propane) tankers are now in service.

Tankers are designed to carry bulk liquids. Most are engaged in the carriage of oil, but some are specially adapted to carry liquefied gases, chemicals, or even wine. VLCCs ( very large crude carriers), are designed to carry crude oil. Very large crude carriers (VLCCs) became common space required; these ships are generally around 2,50,000 tonnes carrying capacity, much of which is accounted for by the cargo. Loading and discharging rates may be as high as 10,000 tonnes per hour. Products and chemical tankers are usually smaller and more complex than VLCCs.

Tankers can be mostly used with the liquid items.

Liner Shipping (Containers)


Liner shipping is characterized by scheduled sailings on an advertised route. Cargoes may consist of many different kinds of goods, in consignments that are each much less than a shipload. Today many liner services are containerized.


liner cargoes include manufactured and high-value goods that can bear higher transport costs than bulk cargoes.

Container ships are designed to carry standard ISO (20 ft and 40 ft and 40HC and 45 and reefer) containers, either in designated cells within a hold, or on deck. Large cellular container ships are capable of carrying several thousand containers.

Many subsidiary ports do not have container cranes; so small feeder container ships often have their own handling equipment.

Coastal and Short Sea Shipping (Passenger Cruise Ships)

Coastal and short-sea shipping are concerned with the movement of cargo and passengers between ports in the same country, or between ports belonging to adjacent countries on the same continent Cruising is an increasingly important shipping sector. In recent years many new cruise ships have been built. Many older vessels have also been converted for cruising. Cruise ships are like floating resort hotels. The latest are very large, with extensive recreational facilities and amenities for 2,000 or more passengers.

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Sea Export Procedure

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Below the Basis Docs required for clearance,

Authorization letter to handle the clearance

AD Code (if not registered)

IEC Copy /PAN

Invoice

Packing list

SDF Form (Self Declaration Form)

Shipping Instruction for filling Shipping bill

Scheme Declaration (if app).

Obtain customer approval for the check list.

After approval pick up the cargo & document and arrange export movement.

Shipping documents collect and hand over to clearance team for clearance process.

Follow up with clearance team for status of the shipment.

After clearance, collect shipping bill from customs.

Update the shipping instructions to the shipping line.

Operation team to handover the cargo to the co loader or liner agents,

Take vessel schedule from the shipping line and update to the customer.

Ask shipping line for debit and make cheque or DD request.

Send to the account department.

MBL has to be released with shipping line within seven days of vessel departure.

Prepare HBL and send to shipper approval.

Make final HBL once approval obtained.

Check the JFN for releasing the B/L for payment terms. Send pre alert to counterpart agent

Coordinating with counterpart agent regarding arrival of the shipment at destination.

Tracking of movement of the cargo till destination and updating to the customer

Inform arrival, customer clearance & delivery confirmation at destination to customer.

Payment collections-submit bills to the customer according to the terms and condition.

Documents need to handover to Shipper
Bill of lading
Export cleared shipping bill
Export cleared invoice and packing list for record
Any other shipper related documents duly signed by the customs.

Documents attached with Pre-alert
HBL copy
MBL copy
Commercial Invoice
Packing List
Agent Debit/ Credit Note 

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LCL Shipement

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LCL is the short form for less than container load. 

If the volume of the shipment does not need full container, then such a shipment is offered to forwarder who closes the container of their own.
These forwarders are known as co-loaders.


The rate is offered on weight or measurement (w/m) and žThe weight of the cargo is expressed in terms of weight and measurement expressed as cubic meter (CBM). The minimum rate is charged on weight or per CBM whichever is higher. 

LCL – Less Container Load, LCL shipping is a good way to ship large orders and items that are large or heavy. LCL shipping is based primarily 
on volume with a minimum shipment volume of one cubic meter.

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Export Oriented Units (EOU)

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Introduction
Introduced in 31st December 1980,by Ministry of Commerce.

Purpose
To boost exports by creating additional production capacity.
Notification No. is 052/2003

Duty Free Imports allowed under EOU Scheme
Second Hand Captial Goods
Repair and Return of Goods
EHTP/STPI

Decision are taken by Board Of Approvals (BOA) ,under Ministry of Commerce.

EOU’s are licensed to manufacture goods within the bonded premises.

Period of bond is 5 years (extendable for another 5 years with the permission of development of commissioner)

The imported capital goods are allowed to be warehoused for a period of 5 years. For other goods the period is 1 year.

Eligibility Criteria
EOU can be set up by any entrepreneur for manufacturing of goods and also for rendering services. 

EOU can be set up for repair, reconditioning , re-engineering also.

EOU unit is required to achieve only positive NFE over a period of 5 years.

Main Objective
The main objectives of the EOU scheme is to :-

Increase Exports

Earn Foreign Exchange for the country

Generate additional employment

Salient Features
—Exemption on customs duty on imports of capital goods, raw materials, consumables, spares, packing materials etc.

100% foreign direct investment permissible.

Even second hand plant and machinery can be imported.

EOU’s get up to 5 years for utilization of imported capital goods, and up to 3 years for other items.

Documents Required for EOU
LOP (Letter of Permission)
Green card with LOP

Bonded warehouse license copy
I.E Code Registration certificate
B-17 bond with B.G (Bank Guarantee)
Require STPI Approval for STPI clearance.

Import Procedure for EOU
Application for registration to Deputy/Asst Commissioner of customs at port of import. Accompanied with following documents: 

Copy of LOP, Pvt.bonded warehouse License copy, Green card, IEC no.

The B/E should filled and assessed based on the import documents. 

B-17 block transfer should be debited for movement of goods (Procurement Certificate in case if unit is located outside i.e., not within the city limits)

After all clearance formalities goods shall be sent to bonded premises of the EOU. 

Importer have to apply for open examination of the cargo from superintendent of EOU.

The EOU Inspector will inspect the goods to ensure the quantity, marks and numbers etc and the inspector will give his report. After inspection the superintendent will verify all the documents and will issue the re-warehousing certificate.

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Freight Forwarding

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A freight forwarder is a person or company that organizes Export/ Import shipments for individuals or companies and may also act as carrier or agent. The agent can book the cargo with main agent and get the space for the shipments,

Main Activities of Forwarding

•Customer care through follow-up, pre alerts and post landing updates to customers for all air imports shipments for all branches.
•Online filing of cargo manifest.
•Maintaining 4 sets of documents-Account/Customer/Clearance/Consol copy.
•Filing of branch CANS.
•Maintaining of MIS reports.
•Customer visits for service updates and requirements.
•Sales leads and follow-ups


Freight Forwarding Procedure

Enquiry- Receipt of enquiry from the customer and to obtain the required rates/info from agents. Quotations- Prepare the quote as per the standard formats with standard conditions. 

Import follow up- Forwarding PO reference to agents and to chase for pick up, booking info, pre alerts and filing manifest. 



Issue of CAN- Ensuring arrival of shipments as per pre alerts, preparing and dispatching Cans as per the quote.

Issue of Do- On receipt of authorization letter, BRO, payment, or credit as per the quote and approval from finance, issues DO. 

Preparation of Docket- Opening of docket with Can no and accumulation of all documents as per the defined procedure. 

Verification of Agents- D/N or C/N-Verification of cost and revenue as per the agreed terms, if any discrepancy is found, to take corrective actions. 
MIS reports- Based in info in the main register to prepare various MIS reports as defined, daily reports, sector wise performance reports(monthly), objectives status(as per periodically defined)


Objectives of Freight forwarding
To achieve and sustain an average on-time arrival of 90% for shipments booked on committed time. 

To achieve and sustain the existing period for submission of quotations to customers with in a day from the date of the enquiry.

Main Barriers and constraints,

TERMS OF SHIPMENT
COMMUNICATION GAP
TRANSIT TIME
TRANSSHIPMENT





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Import Classification

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Import duty:

Custom duty is the duty is been charged on goods on their importation in to India.  Basic custom duty-Levied as per the first schedule to the custom tariff act,1975. 

Additional custom duty –This is commonly known as countervailing duty(CVD) is the duty leviable on imported goods equal to the central excise duty leviable on like articles, produced or manufactured in India. This duty is leviable as per section 3 of customs tariff act,1975.

Special additional duty –This duty is leviable as per section 3A of custom tariff act 1975.It is leviable in all imported goods at 4% except those specifically exempted.

Educational cess-To give a boost to primary education in the country and in conformity with the Common Minimum Program of the UPA government, Finance Minister P Chidambaram on July 2004 proposed to levy a Education cess of 2% on income tax, corporation tax, excise and customs duties and service tax.

Secondary higher educational cess- An additional 1% Secondary and Higher Education cess was imposed in 2007 to help fund new seats in higher education that are required to implement the 27% reservation of seats for other backward classes. “It has been introduced to fund secondary and higher education.

Documents required for Duty Calculation

• Simple Import :-

Invoice, Packing List, CAN (Cargo Arrival Notice), Insurance ce certificate

• High Sea Sale :-

Invoice, High Sea Sale Invoice, CAN (Cargo Arrival Notice), Insurance certificate

Merit Duty

• Merit duty is the standard duty which is calculated without any exemption.

• Concessional duty is the duty which is applicable if any exemption is applicable on that particular commodity.

• The exchange rate is applicable is the rate prevailing on the date of presenting bill of entry is presented in the custom under section 46.the same rate is applicable for all types of clearance(warehouse, home consumption, or bonded)

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Import Process Flow

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