PON SANGER EXPORTSBackground

Set up as an SSI unit in the year 1992 with a minimum investment of Rs.1 Cr.

Currently having a net worth of Rs.7 Cr

Purely an Export Oriented Unit [EOU]

It is a Partnership firm promoted by Mrs. & Mr.Duraisamy with an equal share in the

company

Located 13kms from the knit city Tirupur and 35kms away from the airport.

Well equipped with modern machines occupying an area of 25,000 sq. feet

Manufacturer and Exporter of knitted garments to top end customers in the

International Market.

Produces styles for kid’s, children, ladies’ and men’s outer wears, night wears and

sports wears

Specialized in mercerized knitted fabric garments

It employs about 120 people including contract labour

Equipped with modern high-speed sewing machines, picoting & zig zag machines,

button hole & button stitch machines, Vacuum Steam Iron Tables, Stain removers and

Fusing machines and others which serve the purpose of completion of an order

Lead Time of 1,25,000 pieces in a month of the basic styles

It has a separate in-house stitching unit under the name of Sree Jayram Exports which

is now concentrating on the domestic sale of knitted garments

Imports raw material, knitted processed fabric from overseas, adds value to it and

exports the same

Vision

“The vision of the Company is to become a leading manufacturer and exporter of apparel by

continuously excelling in Quality, Service and Customer Satisfaction using the best technology,

processes and people”.

Mission

“To become the most preferred one-stop source for ready-made garments & ready to cut

fabrics”

“To constantly update the technology and skill sets t`o cater to the ever changing needs of the

apparel & textile industry”.

Quality Policy

The company is committed to achieve total customer satisfaction by producing superior

products at competitive price and timely delivery with total involvement and excellence.

Export Procedure in PONN SANGER EXPORTS

It is essential that a person engaged in international trade be aware of the various procedures

involved. The business of exports is heavily document-oriented & one must get acquainted with the

entire procedure. Failure to comply with documentary requirement may lead to financial loss.

The procedural aspect of export operations are quite formidable and for that matter even an

experienced exporter is overwhelmed by the magnitude of procedural requirements at every stage of

export execution right from the time an export order is obtained until the realization of export

procedures and the benefits thereof.

Pre-Shipment Procedure

On receiving the requisition & purchase order from merchant, documentation department

issues an invoice. Two invoices are prepared i.e. commercial invoice & custom invoice.

Commercial invoice is prepared for the buyer & Custom invoice is prepared for the Custom

authorities of both the countries.

Packing list is prepared which details the goods being shipped.

GSP certificate is prepared if the consignment is exported to EU or countries mentioned in the

GSP list.

Buying house inspects the goods & issues an inspection certificate.

Certificate of origin is also issued and attached, if required.

Following documents are given to Customs for their reference:

Custom Invoice

Packing list

IEC certificate

Purchase Order or L/C, if required.

Custom annexure

On receipt of above documents, customs will issue clearance certificate.

After custom clearance a set of documents with custom clearance receipt are sent along with

the consignment to the forwarder. Forwarder books the shipment & as per the size of the

cartons calculates CBM & decides which container to be used.

Following documents are sent to buying house for their reference, as per buyer’s requirement:

Invoice

Packing List

GSP (if exports to Europe)

Certificate of Origin (if required)

Wearing Apparel sheet

A copy of FCR/ Airway Bill/ Bill of Lading

Buying house then intimates the buyer about the shipment & gives the details

regarding it. Buying house will send a set of these documents to the buyer.

Buyer collects the consignment from the destination port by showing the following documents:

Invoice

Packing List

Bill of lading/ FCR/ Airway Bill

On shipment of goods, exporter will send the documents to the importer’s bank.

Post-Shipment Procedure

A foreign buyer will make the payment in two ways:

TT ( telegraphic transfer) i.e. Wire Transfer – (Advance payment, as per the clause – 50%

advance & remaining 50% on shipment)

Letter of Credit

If the payment terms are a confirmed L/C then the payment will be made by the foreign bank on

receiving the following documents:

Invoice

Packing list

B/L

Any other required by the buyer or the country of import.

The payment terms can be:

At Sight

Within 15 days from Bill of Lading or Airway Bill date.

Within 30 days from Bill of Lading or Airway Bill date.

Within 60 days from Bill of Lading or Airway Bill date.

Within 90 days from Bill of Lading or Airway Bill date.

After shipment, exporter sends the documents to the buyer’s bank for payment. As the buyer’s

bank receive the documents it will confirm with the buyer for release of payment. On

confirmation, it will make the payment in the foreign currency. The transaction will be Bank to

Bank.

The domestic branch will credit the exporter’s account, as against the respective purchase order

or invoice, in Indian rupees by converting the foreign currency as per the current bank rate.

If the payment is through wire transfer, the payment will be made as per the terms agreed by the

exporter (Advance payment, as per the clause – 50% advance & remaining 50% on shipment).

Export Documents

An export trade transaction distinguishes itself from a domestic trade transaction in more

than one way. One of the most significant variations between the two arises on account of the much

more intensive documentation work. The documents mentioned in the pre & post shipment procedure

are discussed below:

1. Invoice: It is prepared by an exporter & sent to the importer for necessary acceptance. When the

buyer is ready to purchase the goods, he will request for an invoice. Invoice is of 3 types:

a. Commercial invoice: It is a document issued by the seller of goods to the buyer raising his

claim for the value of goods described therein, it indicates description of goods, quantity,

value agreed per unit & total value to be paid. Normally, the invoice is prepared first, &

several other documents are then prepared by deriving information from the invoice.

b. Consular invoice: It is certification by a consul or Government official covering an

international shipment of goods. It ensures that exporter’s trade papers are in order & the

goods being shipped do not violate any law or trade restrictions.

c. Customs invoice: It is an invoice made on specified format for the Custom officials to

determine the value etc. as prescribed by the authorities of the importing country.

2. Packing list: It shows the details of goods contained in each parcel / shipment. Considerably

more detailed and informative than a standard domestic packing list, it itemizes the material in

each individual package and indicates the type of package, such as a box, crate, drum or carton.

Both commercial stationers and freight forwarders carry packing list forms.

3. Certificate of Inspection: – It is a type of document describing the condition of goods and

confirming that they have been inspected. It is required by some purchasers and countries in order

to attest to the specifications of the goods shipped. This is usually performed by a third party and

often obtained from independent testing organizations.

4. Certificate of Origin: Importers in several countries require a certificate of origin without which

clearance to import is refused. The certificate of origin states that the goods exported are

originally manufactured in the country whose name is mentioned in the certificate. Certificate of

origin is required when: -

The goods produced in a particular country are subject to’ preferential tariff rates in the

foreign market at the time importation.

The goods produced in a particular country are banned for import in the foreign market.

5. GSP: It is Generalized System of Preference. It certifies that the goods being exported have

originated/ been manufactured in a particular country. It is mainly useful for taking advantage of

preferential duty concession, if available. It is applicable in countries forming European

Union. It has total of 12 columns to be declared by the exporter. They are:

1. Exporter’s name, address and country

2. Importer’s name, address and country

3. Means of transport and route

4. For official use(to be filled by the officials)

5. Item no.

6. Marks and no. packages

7. No. and kind of packages and description of goods

8. Origin criterion

9.Gross weight or quantity

10. No. and date of invoice

11. For certification of competent authority- in this column the competent authority will stamp and

sign for the certification of the form.

12. Declaration by the exporter – in this column the exporter declares the above details mentioned

are correct and country where the goods produced for export and name of the importing

country and then stamped and signed by the authorized representative of exporter with place an

date.

This form A GSP is sent between the countries, which have bilateral agreements. This certified

original form will be used by importing country to import the consignment with deduction in

import duty.

6. IEC Certificate: It is an Import-Export Code Certificate issued by DGFT, Ministry of

Commerce, and Government of India. It is a 10 digit code number. No exports or imports

will be effected without the IEC code. It is mandatory for every exporter.

7. Wearing Apparel Sheet: It is like a check list which gives the detail regarding the content &

design of the garment packed.

8. Bill of Lading: The bill of lading is a document issued by the shipping company or its agent

acknowledging the receipt of goods on board the vessel, and undertaking to deliver the goods

in the like order and condition as received, to the consignee or his order, provided the freight

and other charges as specified in the bill have been duly paid. It is also a document of title to

the goods and as such, is freely transferable by endorsement and delivery.

A bill of lading normally contains the following details:

The name of the company

The name and address of the shipper / exporter

The name and address of the importer / agent

The name of the ship

Voyage number and date

The name of the ports of shipment and discharge

Quality, quantity, marks and other description

The number of packages

Whether freight paid or payable

The number of originals issued

The date of loading of goods on the ship

The signature of the issuing authority.

9. Airway Bill: An airway bill, also called an air consignment note, is a receipt issued by an airline

for the carriage of goods. As each shipping company has its own bill of lading, so each airline has

its own airway bill. Airway Bill or Air Consignment Note is not treated as a document of title and

is not issued in negotiable form.

Foreign Trade Policy 2009-2014 – Special Focus Initiatives:

Government of India shall make concerted efforts to promote exports in all sectors by specific

sectoral strategies that shall be notified from time to time Rs. 325 crores would be provided

under promotional schemes for textile for exports made with effect from 1st April 2009.

EPCG Scheme at zero duty has been introduced for certain engineering products, electronic

products, basic chemicals and pharmaceuticals, apparel and textiles, plastics, handicrafts,

chemicals and allied products and leather and leather products.

Technical textiles have now been added under Focus Product Scheme.

Under DEPB Scheme,

a. Duty credit scrip under Chapter 3 i.e. Promotional measures and under DEPB scheme

will now is issued without waiting for realization of export proceeds. The exporters will be

required to submit proof of export proceeds realization with the time limits prescribed by

RBI. This provision is now applicable.

b. DEPB scripts were earlier used for payment of duty only on imported items that were

under free category but now this utilization is now extended for payment of duty for import

of restricted items as well.

Ponn Sanger Overseas Buyers and Suppliers’ share

Their high profile customers are not only happy but also satisfied which has earned them

recognition and unflattering loyalty from prominent buyers overseas.

Overseas Buyers of the firm

Overseas Buyers:

SWC , USA

Design In Motion , USA

Henrich Opermayer , Germany

GMBH , Germany

Overseas Suppliers of the firm

55%36%

9%

ExportsUSA Europe Canada

Overseas Suppliers:

Taiwan and China are the main

Players of imports here

Upon the request of the specific

Buyer, Ponn Sanger imports

the

Raw material, the fabric

Kind not manufactured in home

Country

Domestic Suppliers Share to Export

Domestic Suppliers of the firm

60%24%

12%4%

Domestic SuppliersSelf - Fabric Knitting & Yarn Dyeing Erode - Fabric ProcessingMumbai - Accessories Tirupur - Embroidery

72%

28%

ImportsTaiwan China