raj kumar power of export documentation

8/12/2019 Raj kumar power of export documentation

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DE)ARA(I*N

I here*+ declare that the ro'ect reort entitled a stud+ on +Export

Documentation in MADDI )AK'!MAIA! & *.)(D., is an

original -or su*itted *+ e in artial %ul%ilent %or the a-ard o%

degree o% +ear Integrated M.B.A o% Achar+a &agar'una niersit+,

untur and has not *een su*itted earlier to this uniersit+ or to an+

other institution %or the a-ard o% an+ degree , diloa, certi%icate or an+

other title.



AKN*-)ED#EMEN(

i%e o% huan *eings is %ull o% interactions. &o one is sel%!su%%icient *+ hisel%-heneer an+one is doing soe serious and iortant -or a lot o% hel %ro the

eole concerned is needed one less seciall+ o*liged to-ards the. I cannot%orget acno-ledging the in %e- -ords as -ithout the guidance co!ordination o%the in + ro'ect reort -ould not hae *een ossi*le.

A large nu*er o% indiidual contri*uted to this ro'ect. I a than%ul to all o% the%or their hel and encourageent. M+ -riting in this ro'ect reort has also *eenin%luenced *+ a nu*er o% -e*sites and standard tet*oos. As %ar as ossi*le, the+hae *een %ull+ acno-ledged at the aroriate lace. I eress + gratitude to allo% the.

4irst o% all I o-e + heart%elt gratitude to + guide Dr.N.PRA'ANA K%MAR

Asst.professor International Business 'tudies, %or his no*le guidance throughoutthe coletion o% the #ro'ect.

I -ould lie to etend + heart%elt thans to Mr B.BABU RAO Personal Officer,

MADDI LAKSHMAIAH& CO.LTD, an !"nt"r %or giing e an oortunit+ to-or on this ro'ect.

ast *ut not least, also gie + sincere thans to all the eole to directl+ indirectl+hae hel and encourage e in %inding the -a+ to e in collecting the re5uisitein%oration and coleting the ro'ect e%%ectiel+ and tiel+.

6. 7A8 6MA7

MBA (IB) - III Year 7oll &o. Y11IB20022



#%IDE ER(I/IA(E

(* -!*ME'*EER I( MA" *NERN

This is to certify that the project report titled “Export Process and Documentation”

ffered !y Ethnic To!acco India "imited# $untur has !een prepared !y %& '

%*+'# 'oll ,o& Y11IB20022# a student of +B (+aster of Business

dministration)# session (./-./0) 1ith “International Business 2tudies” as majorarea of speciali3ation&

The study 1as conducted 1ith special reference to Ethnic To!acco India "imited#

$untur&

I recommend this project for e4aluation&

#lace9 untur

SI&A:7E$ate9

#7;8E<: I$E9$r.&.#7ASA&A 6MA7

'erial

no

(itles



0. 1apter202 Introduction

3. 1apter232 ;*'ecties and ethodolog+ &eeds o% stud+ Methods o% stud+ ;*'ecties o% stud+ iitations o% stud+

4. 1apter242 coan+ ro%ile

5. 1apter252 Indian to*acco industr+

6. 1apter262 Iortance o% eortdocuents in trade

7. 1apter272 :heoretical %rae-or o%eort rocedure

8. 1apter282 Eort docuentation

9. 1apter292 <onclusion

:. 1apter2:2 Bi*liograh+



5hapter- /Introduction

Importance of forei6n trade

ll countries need 6oods and ser4ices to satisfy 1ants of their people& Production of

6oods and ser4ices re7uires resources& ,o country can produce all the 6oods and

ser4ices that it re7uires& It has to !uy from other countries 1hat it cannot produce or

can produce less than its re7uirements& 2imilarly it sells to other countries the 6oods

1hich it has in surplus 7uantities&

Foreign trade is exchange of capital, goods, and services across international borders or territories. It refers to export of goods and services by a firm to a foreign-based

buyer (importer). In most countries, it represents a significant share of gross domestic product (GD). !hile international trade has been present throughout much of

history its economic, social, and political importance has been on the rise in recent centuries. Industriali"ation, advanced transportation , globali"ation, multinational

corporations, and outsourcing are all having a ma#or impact on the international trade system. Increasing international trade is crucial to the continuance of globali"ation.

International trade is a ma#or source of economic revenue for any nation that is considered a $orld po$er. !ithout international trade, nations $ould be limited to thegoods and services produced $ithin their o$n borders. Foreign trade is typically more costly than domestic trade. %he reason is that a border typically imposes additional

costs such as tariffs, time costs due to border delays and costs associated $ith country differences such as language, the legal system or culture.

http://en.wikipedia.org/wiki/Capital_(economics)


http://en.wikipedia.org/wiki/Goods



http://en.wikipedia.org/wiki/Service_(economics)



http://en.wikipedia.org/wiki/International_borders



http://en.wikipedia.org/wiki/Gross_domestic_product



http://en.wikipedia.org/wiki/Trade



http://en.wikipedia.org/wiki/Industrialization


http://en.wikipedia.org/wiki/Transport


http://en.wikipedia.org/wiki/Globalization



http://en.wikipedia.org/wiki/Multinational_corporation




http://en.wikipedia.org/wiki/Outsourcing




















n the e4e of Independence in /89:# forei6n trade of India 1as typical of a colonial

and a6ricultural economy& Trade relations 1ere mainly confined to Britain and other

5ommon1ealth countries& Exports consisted chiefly of ra1 materials and plantation

crops 1hile imports composed of li6ht consumer 6oods and other manufactures&

4er the last 0. years# India;s forei6n trade has under6one a complete chan6e in

terms of composition and direction& The exports co4er a 1ide ran6e of traditional

and non-traditional items 1hile imports consist mainly of capital 6oods# petroleum

products# ra1 materials# and chemicals to meet the e4er-increasin6 needs of a

de4elopin6 and di4ersifyin6 economy&

<or a!out 9. years (/8=.-8.)# forei6n trade of India suffered from strict !ureaucratic

and discretionary controls& 2imilarly# forei6n exchan6e transactions 1ere ti6htly

controlled !y the $o4ernment and the 'eser4e Ban> of India& <rom /89: till mid-

/88.s# India# 1ith some exceptions# al1ays faced deficit in its !alance of payments#

i&e& imports al1ays exceeded exports& This 1as characteristic of a de4elopin6

country stru66lin6 for reconstruction and modernisation of its economy& Imports

6alloped !ecause of increasin6 re7uirements of capital 6oods# defence e7uipment#

petroleum products# and ra1 materials& Exports remained relati4ely slu66ish o1in6

to lac> of exporta!le surplus# competition in the international mar>et# inflation at

home# and increasin6 protectionist policies of the de4eloped countries&

Beginning id!1==1, the oernent o% India introduced a series o% re%ors to

li*eralise and glo*alise the Indian econo+. 7e%ors in the eternal sector o% India

-ere intended to integrate the Indian econo+ -ith the -orld econo+. India>s

aroach to oenness has *een cautious, contingent on achieing certain

reconditions to ensure an orderl+ rocess o% li*eralisation and ensuring

acroeconoic sta*ilit+. :his aroach has *een indicated in recent +ears -ith the

gro-ing incidence o% %inancial crises else-here in the -orld. All the sae, the olic+regie in India in regard to li*eralisation o% the %oreign sector has -itnessed er+

signi%icant change.

:he 4oreign :rade ($eeloent and 7egulation)Act,1==2.An Act to roide %or the

deeloent and regulation o% %oreign trade *+ %acilitating iorts into, and

augenting eorts %ro India and %or atters connected there-ith or Incidental

thereto. Be it enacted *+ #arliaent in the 4ort+!third Year o% the 7eu*lic o% India.

Since then has ade a reara*le change in its trade to di%%erent destination.



:he econo+ o% India is the %ourth largest in the -orld, -ith a $# o% ?3.@3 trillion,

and is the tenth largest in the -orld -ith a ?@=1.= *illion at 200" S$ echange rates

and has a real $# gro-th rate o% @.2.Eort reenues %ro the sector hae gro-n

%ro ? *illion in 2003 to ?"@ *illion in 200C. India>s %oreign echange reseres areoer S? 102 *illion and eceed the %oreign echange reseres o% SA, 4rance,

7ussia and eran+. :his has strengthened the 7uee and *oosted inestor

con%idence greatl+.

Boosted !y the rapid pace of the economic pro6ress# profita!le in4estment re6ime#

flexi!le procedural policies 1ith the relaxations introduced in 4arious sectors# has in

turn pro4es to !e the horde for the international >ey players in findin6 the ne1

in4estment opportunities in India& 'isin6 trend of the forei6n direct in4estment is also

si6nallin6 to1ards the pi4otal role playin6 !y the forei6n direct in4estment in the

6ro1th of the economy& The facts are also standin6 hi6h as in the year ..:-.?#

forei6n direct in4estment in India has crossed the mar> of *2@= !illion# 1hich 1as

=0 per cent more than 1hat it 1as in ..0-.:# i&e&# *2@/=&: !illion&

In the first half of the financial year# ..?# IndiaAs forei6n direct in4estment 1as

re6istered to !e *2 @9/ !illion& It has !een projected that durin6 the time period of

..?-.8# the <DI of the country could attract *2@= !illion& +ore flo1 of the forei6n

direct in4estment has !een seen in the s>ill intensi4e and hi6h 4alue added ser4ice

industries# especially those 1hich are related to the financial ser4ices and

information technolo6y& <urthermore# India has come out as the international ser4ice

industry 1ith the more attraction of <DI# pro4idin6 the more unassaila!le lo1 cost

opportunities# the pre4alence of hi6h technolo6y and lan6ua6e s>ills and the hi6h

supporti4e 6o4ernment policies& 5ompanies from across the 1orld are no1 !usy in

e4incin6 their interest into 4arious sectors such as construction# ener6y# electrical

e7uipment;s# telecommunication# automo!iles etc& <rom last /. years# IndiaAs

6o4ernment has under6one complete chan6e in its outloo> 1hen it comes a!out the

<DI&

The forei6n trade policy of India helps in determinin6 the trade relations of the

country in a si6nificant 1ay& <or the first time# the 6o4ernment terminated the fi4e-

year Exim Policy# ..-.: and replaced it 1ith <orei6n Trade Policy (<TP) for a term

of fi4e-year startin6 the fiscal year on the /st u6ust ..9& It ta>es an inte6rated

4ie1 of the o4erall de4elopment of the country;s forei6n trade&



2trate6y

The o!jecti4e of <orei6n Trade Policy is of t1o-foldC

i& To ma>e IndiaAs percenta6e share of 6lo!al merchandiser trade dou!le !y

..8 and

ii& To act as an effecti4e instrument of economic 6ro1th !y 6i4in6 a thrust to

employment 6eneration# especially in semi-ur!an and rural areas&

The >ey strate6ies are of <TP areC

i& *nshac>lin6 of controls

ii& 5reatin6 an atmosphere of trust and transparency

iii& 2implifyin6 the procedures and !rin6in6 do1n transaction costs

i4& doptin6 the fundamental principle that duties and le4ies should not !e

exported

4& Identifyin6 and nurturin6 different special focus areas to facilitate

de4elopment of India as a 6lo!al hu! for manufacturin6# tradin6 and

ser4ices&

<orei6n trade of India has pro4ed to !e the !ac> !one for its economy and has

propelled the country;s trade relations to hi6her position& It has sho1n a remar>a!le

chan6e from past fe1 decades contri!utin6 for the de4elopment of the country;s

trade&

'ole of Exports in Indian Economy

The export sector of Indian economy made comprehensi4e pro6ress o4er the last

decade& The exponential 6ro1th of the export sector of Indian economy can !eattri!uted to the li!eral $o4ernment of India economic policy& Indian exports had an

am!itious tar6et of *2 /0. !illion in ..:-.?& The achie4ement came to the Indian

exports in the last fiscal despite the odds a6ainst the exports# minimi3in6 the 6ains&

In the first t1o months of ..:-.? exports 6re1 !y .&# 1hich 1as a little lo1er

than the pre4ious year o4er the same period a year a6o& +anufactured 6oods from

India 6re1 moderately !y /= in the first 7uarter of ..:-..? as compared to

/& in the last fiscal year& Fi6h 4alue commodities li>e en6ineerin6 6oods and

rice re6istered 4ery hi6h 6ro1th rate in the /st 7uarter of this fiscal a6ainst the same

period last year& The o4erall exports su66est that the Indian exports 6re1



considera!ly across all major exportin6 destinations& The Indian exports to Pa>istan#

*E and Italy sho1ed remar>a!le 6ro1th in the first 7uarter of the current fiscal

year&

The astronomical 6ro1th of the Indian export sector 1as led !y the follo1in6

industries -

• Information Technolo6y

• Telecommunications hard1are

• Electronics and hard1are

• Pharmaceutical and !iotechnolo6y products

• 5onsumer dura!les

• Textiles

• 5onstruction machinery

• Po1er e7uipment

• <ood 6rains

• Iron and steel

• 5hemicals and fertili3ers

The ro!ust o4erall 6ro1th of export sector of Indian economy led to secondary

6ro1th of the follo1in6 economic parameters -

• IndiaAs economy 6re1 at 8& in 7uarter pril-une and it 1as dri4en !y

manufacturin6# construction and ser4ices sector and a6riculture sector

• $DP factor for the first 7uarter of ..:-.? 1as at 's&:##/ crore#

re6isterin6 a 6ro1th rate of 8& o4er the correspondin6 7uarter of pre4ious

year

•

Exports 6re1 !y /?&// durin6 the /st 7uarter of ..:-..? and the importsshoot up !y 9&. durin6 the same period

• IndiaAs <'EG reser4es (excludin6 $old and 2D's) stood at @/8&:= !illion

at the end of uly A .:

• The annual inflation rate 1as 9&9= for the 1ee> ended uly ?# ..:

• IndiaAs Balance of Payments is expected to remain comforta!le

• +erchandise Exports recorded stron6 6ro1th



• ccordin6 to reports# producti4ity 6ro1th rate of Indian economy is estimated

to !e around ? and a!o4e until ..

t this stupendous 6ro1th of the export sector of Indian economy# it is expected that

India 1ill !ecome the second lar6est economy in the 1orld after 5hina&

Export 2ector of Indian Economy has impro4ed immensely o4er the years and has

earned *2 @ /= !illion in the current fiscal year& The 6oods exported from India

mainly include 1ide 4ariety of a6ricultural products# chemicals# je1ellery# 6arments#

and leather 6oods and so on&

India has de4eloped !usiness relations 1ith a num!er of forei6n countries li>e the

mem!er countries of 2'5# some Eastern European countries as 1ell as frican

countries# +em!ers of E*& The impressi4e list of countries includesC

• 'ussia

• *E

• *2

• Fon6 %on6

• *%

• apan

• $ermany

• 2in6apore

• Bel6ium

• +alaysia

• ,etherlands

• Ban6ladesh

• Italy

• Thailand

• <rance

• ustralia

The export sector of Indian economy has al1ays delineated impressi4e 6ro1th in all

the areas of export# li>e the chemical industry in the financial year ..=-.0 recorded

*2 @ /0::&/million from exports# 1hereas the export earnin6s from 6ems and



je1ellery 1as *2 @ /:.=&99million in the same fiscal& The en6ineerin6 industry has

!een performin6 consistently o4er the years in the arena of exports as it secured the

second position in terms of the earnin6s from exports in ..9-.=# amountin6 to *2 @

/.=/0&9=million# 1hich increased to *2 @ /9=?:&:million in the next fiscal& The

performance of textile industry has fluctuated a little as the earnin6 of the textile

industry from exports in the financial year ..9-.= 1as *2 @ /.9&:/million 1hich

came do1n to *2 @ /./:&90million in ..=-.0&

*2 has turned out to !e the most si6nificant export partner of

India and the export sector of Indian economy earned approximately *2 @ /0=&0.

million in ..0-.:& *E has stood second only to *2 as *E contri!uted 8&: out

of the total Indian earnin6s from exports in ..0-.:& *% and 5hina has exchan6ed

their positions in the current year as 5hinaAs share amon6 the exports fi6ure in India

in ..0-.: has impro4ed !y 0& in comparison to ..=-.0& In ..9-.= Bel6ium

and Italy contri!uted su!stantially to the earnin6s from exports# 1ith a contri!ution of

*2 @ 99&.8 million and *2 @ /0.&? million respecti4ely&

Products and sectors en6a6ed in International Trade

There are three major sectors of Indian Economy

6riculture

6riculture and allied sectors li>e forestry# lo66in6 and fishin6 accounts for = of

the $DP& It employs almost =? of the total 1or> force& It is the lar6est economic

sector and plays a si6nificant role in the o4erall socio-economic de4elopment of

India& Due to steady impro4ement in irri6ation# technolo6y# modern a6ricultural

practices the yield per unit area of all crops has increased tremendously&

Industry

Index of industrial production 1hich measures the o4erall industrial 6ro1th rate 1as

/.&/ in cto!er ..9 as compared to 0& in cto!er ..& The lar6est sector

here holds the textile industry& utomo!ile sector has also demonstrated the

inherent stren6th of Indian la!our and capital& The three main su! sectors of industry

4i3 minin6 H 7uarryin6# manufacturin6# and electricity# 6as H 1ater supply recorded

6ro1ths of =# ?&? and :&/ respecti4ely&



2er4ices

The ser4ice sector is the fastest 6ro1in6 sector& It has the lar6est share in the $DP

accountin6 for a!out 9? in ...& Business ser4ices# communication ser4ices#

financial ser4ices# community ser4ices# hotels and restaurants and trade ser4icesare amon6 the fastest 6ro1in6 sectors&

5omposition of Trade• Export 6ro1th has increased in ..-.9 due to major contri!ution from

manufacturin6 sector&

• Export of 1heat# 4e6eta!les and fruits# meat and meat preparation has

accelerated&

•

Exports of products such as marine products# cashe1 nuts# spices ha4edeclined durin6 ..-..9&

• et the o4erall export 6ro1th has 1itnessed a record sur6e in India;s export&

• The products most commonly exported today are manufacturin6 6oods#

chemical products# 6ems and je1ellery# a6ricultural items and textiles&

• The rise in imports is also !road !ased&

• The products imported include 6old and sil4er# consumer 6oods# capital

6oods# food and allied products mainly edi!le oil&

• <or the period pril-,o4em!er ..9-.= imports 1ere 4alued at *2 @

090=&:8 million representin6 an increase of 9&9: o4er the le4el of

imports&

The major export products of India hail from the follo1in6 di4isions 1ithin the exportsector of Indian economy li>eC

• En6ineerin6 $oods• 6ricultural Products

• 5hemicals

• +arine Products

• Petroleum products

• "eather $oods

• Textiles

mon6 the a6ricultural exports of India include Indian rice# ra1 cotton# cashe1#



su6ar# to!acco# spices# coffee# 1heat and tea ha4e !ecome 4ery popular in the

international mar>et on account of their 4ariety and excellent 7uality& The

en6ineerin6 industry ser4es to export electronic 6oods# transport e7uipment;s# iron

and steel# and 4arious machineries and the textile industry is en6a6ed in the export

of readymade 6arments# jute# cotton yarn# carpets# 1oollen yarn# coir# artificial

fa!rics and so on& ther si6nificant export products include paints# ru!!er# iron ore#

plastic# pharmaceuticals etc&

The export !arriers in India ha4e !een hamperin6 Indian exports to a 6reat extent

and most of such !arriers ha4e !een announced !y the European *nion re6ardin6

certification re7uirements# application of pesticides# dumpin6 of 1aste products& But

the most si6nificant export !arrier faced !y the Indian exporters is red tapism 1hich

is mostly accompanied !y corruption& Fo1e4er# the 6o4ernment of India has

considered plans to li!erate the Indian exporters from the cum!ersome paper 1or>s

and simplify the re7uired procedures&

Export Tariffs in India follo1s the re6ulations of the 5ustoms Tariff ct and a

su!stantial num!er of export 6oods are su!jected to tariffs presently# such asC

• +an6anese re

• 5hromium res

• Blac> Pepper

• 2illimanite

• 'a1 Jool

• $roundnut

• Tea and so on

+ajor 5ommodities of Export

• $ems H e1ellery

• Textiles

• 'eadymade 6arments

• Dru6s# Pharma H fine chemicals

• +achinery H Instruments

• +anufacturer of +etals

• res H minerals



• Prim& H semi fin iron H steel

• "eather H leather manufactures

• Transport e7uipment

• Plastic H linoleum products

• Electronic 6oods

• +arine Products

• Dyes H Intermediates

• 'u!!er manufactured products

Balance of Payments

The trade !alance is often a major determinant of the payments !alance& Trade

deficit has often caused !alance of payments deficits for India& Fo1e4er# the effects

of trade deficit ha4e !een miti6ated to a considera!le extant !y the in4isi!les

surplus& ne of the important reasons for the recent !alance of payments (BP)

pro!lem has !een the decline in the role of the in4isi!les surplus in financin6 the

trade deficit& Expect for the !rief periods# India;s BP has sho1n deficit& India

experienced BP pro!lems of 4aryin6 intensity in most of the years until the early

/88.s&

Shrinking foreign trade

I&DI's trade deficit during the first three months of current fiscal year (**+-*) on a balance of payments () basis $as large due to the steeper decline in the

pace of exports than that of imports %he trade deficit on a basis in / (012 3.* billion) $as, ho$ever, less than that in / of **4-*+ (012 5.6 billion).

%he 7ey features of Indias that emerged in / of fiscal **+-* $ere8

(i) %he decline in exports $hich started since ctober **4 continued during the first 9uarter of **+-*. Import payments, on a

basis, also continued its declining trend mainly due to lo$er oil import bill:(ii) rivate transfer receipts remained buoyant and increased by +.6 per cent to 012 5.5 billion during / of **+-*. ;xports of

soft$are services, ho$ever, declined during / of **+-*:

(iii) Despite net invisibles surplus at 012 *. billion, the large trade deficit (012 3.* billion) mainly on account of sharp decline in

exports led to a current account deficit of 012 <.4 billion in / of **+-* (012 +.* billion during / of **4-*+):

(iv) !ith the revival in capital inflo$s to India, particularly foreign investments, the capital account sho$ed a turnaround from a

negative balance in last t$o 9uarters of **4-*+ to a positive balance of 012 3.= billion during / of **+-*:



(v) ortfolio investment $itnessed a sharp turnaround from net outflo$s of 012 .= billion in /6 of **4-*+ to net inflo$s of 012 4.5

billion during / of **+-*:

(vi) &>I deposits also $itnessed higher inflo$s reflecting the positive impact of the revisions in the ceiling interest rate on &>I

deposits:

(vi i) %here $as a marginal increase in reserves on basis (i.e., excluding valuation) during / of **+-*. ?o$ever, the foreign

exchange reserves including valuation increased by 012 5. billion during / of **+-* implying that the increase in reserves

during this period $as mainly due to valuation gains as the 01 dollar has depreciated against ma#or currencies.

@a#or Items of IndiaAs alance of ayments(012 million)

;3<<82<9=

;PR=

;3<<92<:=

;P=

April2$une

;3<<92<:=

;PR=

April2$une

;3<<:20<=

;P=

Exports 3335 =<46 6+* 54=4+

Imports <==4+ +6<4= 4*<6< 36==<

TradeBalance

-+33 -+6*5 -56< -<+43

Invisibles,net

=6<+ 4+<4= 6*3 *=+

CurrentAccountBalance

-=*56 -+4= -+*+ -<4*4

CapitalAccount*

*++4 +=5= <6 <+5

Change ineserves!"# indicatesincrease$%indicatesdecrease&

-+36 **4* -5< -<



Invisibles

(i) During / of **+-*, invisibles receipts declined marginally, $hile invisibles payments recorded a positive gro$th. In net terms, the invisibles balance at 012

*. billion $as lo$er than that in the corresponding period of the previous year (012 .6 billion), though higher than that in /6 of **4-*+ (012 +.5 billion).

Invisibles Receipts

(i) Invisibles receipts registered a marginal decline of *.= per cent in / of **+-* (as against a higher gro$th of 5*.5 per cent in / of **4-*+) on account of a

dec line in almost al l catego ries of serv ices except insu rance and financia l serv ices and a dec line of *.5 pe r cen t in investmen t

income receipts.

(ii) ;xports of soft$are services declined by .< per cent during / of **+-* as against an increase of 5=.3 per cent in / of **4-*+. 'ccording to the

&'11B@, soft$are services exports are pro#ected to gro$ by 6 to = per cent to 012 64 to <* b il lion during the f inancial year

**+-*.

(iii) %ravel receipts at 012 .5 billion during / of **+-* declined by 4.= per cent as against an increase of +.+ per cent in / of **4-*+ reflecting a slo$do$n

in tourist arrivals in the country since &ovember **4. 'ccording to the data released by the @inistry of %ourism, foreign tourist arrivals declined by .4 per cent in

/ of **+-*.

Invisibles ayments

(i) Invisibles payments recorded a positive gro$th of .+ per cent in / of **+-* (5.< per cent in / of **4-*+) mainly due to gro$th in payments under

services and income account. In the services account, ho$ever, payments under travel, transportation, G.&.I.;. and soft$are services recorded a negative gro$th

in / of **+-*.

(ii) Investment income payments (include mainly the interest payments on commercial borro$ings, external assistance and non-resident deposits, and reinvested

earnings of the foreign direct investment (FDI) enterprises operating in India) increased marginally to 012 6.6 billion during / of **+-* (012 6. billion in / of

**4-*+) mainly due to increased reinvested earnings of FDI companies in India.

Invisibles alance

(iii) ' combined effect of decline in invisibles receipts and increase in invisibles payments led to marginally lo$er net invisibles (invisibles receipts minus invisibles

payments) at 012 *. billion in / of **+-* than that in the corresponding period of the previous year (012 .6 billion). 't this level, ho$ever, the invisiblessurplus financed about ==.= per cent of trade deficit during / of **+-* (=.5 per cent during / of **4-*+).

Burrent 'ccount Deficit

i) Despite net invisibles surplus, the large trade deficit mainly on account of sharp decline in exports led to a current account deficit of 012 <.4 billion in / of **+-

* (012 +.* billion during / of **4-*+).

Bapital 'ccount and >eserves

i) %he gross capital inflo$s to India revived during / of **+-* as compared to the last t$o 9uarters of **4-*+ manifesting confidence in Indias long-term

gro$th prospects. %he gross inflo$s $ere, ho$ever, at 012 =4.< billion as compared to 012 +*.+ billion in / of **4-*+ mainly led by inflo$s under FIIs, FDI and

&>I deposits. Gross capital outflo$s during / of **+-* stood lo$er at 012 =.4 billion as against 012 =+.= billion in / of **4-*+.

(ii) !ith the revival in capital inflo$s to India, particularly foreign investments, the capital account sho$ed a turnaround from a negative balance in last t$o 9uarters

of **4-*+ to a positive balance of 012 3.= billion during / of **+-* (012 . billion in / of **4-*+).

(iv)&et FDI inflo$s (net in$ard FDI minus net out$ard FDI) amounted to 012 3.4 billion in / of **+-* (012 +.* billion in / of **4-*+). &et in$ard FDI stood

at 012 +.< billion during / of **+-* (012 .+ billion in / of **4-*+). &et out$ard FDI stood at 012 .3 billion in / of **+-* as compared $ith 012 .+

billion in / of **4-*+.

(v) During / of **+-*, FDI to India $as channeled mainly into manufacturing sector (+. per cent), real estate activities (<.3 per cent), financial services (<.6

per cent), construction (. per cent) and business services (.= per cent). @auritius continued to be the ma#or source of FDI during / of **+-* $ith a share

of 64.+ per cent follo$ed by 01' at .4 per cent.

(vi) ortfolio investment primarily comprising foreign institutional investors (FIIs) investments and 'merican Depository >eceipts ('D>s)CGlobal Depository

>eceipts (GD>s) $itnessed a sharp turnaround from net outflo$s of 012 .= billion in /6 of **4-*+ to net inflo$s of 012 4.5 billion during / of **+-*. During

**+-*, the sharp increase in FII inflo$s could be attributed to the recovery of domestic stoc7 mar7et in line $ith international stoc7 mar7ets, better corporate

performance, political stability and comparatively better gro$th prospects.



(vii) %he tightness in li9uidity in the overseas mar7ets continued during / of **+-*. %he approvals of external commercial borro$ings (;Bs) $ere very lo$ in

the first t$o months of **+-*: ho$ever, it recovered during une **+. In addition, repayments of ;Bs $ere higher at 012 . billion during / of **+-*

(012 . billion during / of **4-*+) resulting in net outflo$s of 012 *.6 billion under ;Bs (inflo$s of 012 .< billion in / of

**4-*+).

(viii) %he gross disbursements of short-term trade credit $as 012 *. billion during / of **+-* almost same in / of **4-*+. %he repayments of short-term

trade credits, ho$ever, $ere very high at 012 5. billion in / of **+-* (012 =.4 billion in / of **4-*+). 's a result, there $ere net outflo$s of 012 5. billion

under short-term trade credit during / of **+-* (inflo$s of 012 .6 billion in / of **4-*+).

(ix) an7ing capital mainly consists of foreign assets and liabilities of commercial ban7s. &>I deposits constitute ma#or part of the foreign liabilities. an7ing capital

(net), including &>I deposits, $ere negative at 012 5.6 billion during / of **+-* as against a positive net inflo$ of 012 .= billion during / of **4-*+. 'mong

the components of ban7ing capital, &>I deposits $itnessed higher inflo$s of 012 .4 billion in / of **+-* (net inflo$s of 012 *.4 billion in / of **4-*+)

reflecting the positive impact of the revisions in the ceiling interest rate on &>I deposits.

(x) ther capital includes leads and lags in exports, funds held abroad, advances received pending for issue of shares under FDI and other capital not included

else$here. ther capital recorded net outflo$s of 012 .3 billion in / of **+-*.

@erchandise %rade

;xports(i) %he decline in exports $hich started since ctober **4 continued during the first 9uarter of **+-*. n a basis, Indias merchandise exports recorded a

decline of .* per cent in / of **+-* as against an increase of 65.* per cent in / of **4-*+.

(ii) 's per the data released by the Directorate General of Bommercial Intelligence and 1tatistics (DGBIE1), merchandise exports declined by 3.6 per cent in /

of **+-* as against a higher gro$th of 5=.6 per cent in / of **4-*+, reflecting fall in demand $orld$ide due to the global economic crisis.

INDIA>s cuulatie alue o% eorts %or the eriod Aril!

August, 200= -as S? @"12= illion (7s. 311C1 crore) asagainst S ? =2== illion (7s. 3=1"1 crore) registering a

negatie gro-th o% 31 er cent in $ollar ters and 20." er cent

in 7uee ters oer the sae eriod last +ear. <uulatie alue

o% iorts %or the eriod Aril! August 200= -as S? 102300

illion (7s. "=C10 crore) as against S? 13@=1 illion (7s.

@"0"1 crore) registering a negatie gro-th o% 33." er cent in

$ollar ters and 23.3 er cent in 7uee ters oer the sae

eriod last +ear.

;il iorts during Aril! August, 200= -ere alued at S?

22C illion -hich -as "C." er cent lo-er than the oil iorts

o% S ? 3C"2 illion in the corresonding eriod last +ear.

&on!oil iorts during Aril! August, 200= -ere alued at S?

C"02" illion -hich -as 2.= er cent lo-er than the leel o%

such iorts alued at S?==="= illion in Aril! August,



200.

:he trade de%icit %or Aril! August, 200= -as estiated at S

?31C1 illion -hich -as lo-er than the de%icit o% S ? @0C32

illion during Aril!August, 200

ED#;7:S IM#;7:S (Aril!August, 4Y 200=!10)

In ? Million In 7s <rore

Eorts including re!eorts

200!0= =2== 3=1"1

200=!10 @"12= 311C1

ro-th 200=!

10/200!200=

(ercent)

!31.0 !20."

Iorts

200!0= 13@=1 @"0"1

200=!10 102300 "=C10

ro-th 200=!

10/200!200=

(ercent)

!33." !23.3

:rade Balance

200!0= !@0C32 !2@200

200=!10 !31C1 !13=3

4igures %or 200!0= and 200=!10 are roisional



:he trade de%icit %or Aril! 8une, 200= -as estiated at ? 10"

illion -hich -as lo-er than the de%icit at ? 2@"2 illion

during Aril! 8une, 200.

Imports

(i) Import payments, on a basis, also continued its declining trend. Imports declined by +.3 per cent in / of **+-* as against a positive gro$th of 6.+ per

cent in / of **4-*+.

(ii) 'ccording to the data released by the DGBIE1, the decline in imports is mainly attributed to the sharp fall in oil import payments due to lo$er c rude oil prices

during / of **+-* (012 35.+ per barrel in / of **+-* as against 012 + per barrel in / of **4-*+). imports recorded a sharp decline of <3.+ per

cent during / of **+-* as against a sharp increase of =6. per cent during / of **4-*+. 's per the data released by the @inistry of etroleum E &atural Gas,

Government of India, imports sho$ed a decline of 6<. per cent during / of **+-* despite a 9uantity gro$th of * per cent mainly due to lo$er crude oil

price.

(iii) 'ccording to the DGBIE1 data, out of the total decline in imports of 012 3.= billion in / of **+-* over the corresponding previous 9uarter, oil imports

declined by 012 3.4 billion (share of 35. per cent in the decline in total imports during / of **+-* as against <+.4 per cent share in total increase in imports

during / of **4-*+), $hile non-oil imports decreased by 012 +.4 billion (share of 53.+ per cent in the decline in total imports during / of **+-* as against

6*. per cent share in total increase in imports during / of **4-*+).

Inflo$s E utflo$s from &>I Deposits and ocal !ithdra$als(In 2 million)

Inflo>s *utflo>s

)ocal

-it1dra>als

3<<72<8 ;R= 0::05 066:4 043<9

3<<82<9 ;PR= 3:5<0 3:333 09:0:

3<<92<: ;P= 48<9: 438:: 3<708

3<<92<: ;?0=;PR=

:<74 935: 6068

3<<:20< ;?0=

;P=00083 :465 6679

ariation in >eserves

(i) %he increase in foreign exchange reserves on a o basis ( i.e., excluding valuation) $as 012 < million in / of **+-* (as against an accretion to reserves of

012 ,5< million in / of **4-*+). ?o$ever, the foreign exchange reserves including valuation increased by 012 5. billion during / of **+-* implying that the

increase in reserves during this period $as mainly due to valuation gains as the 01 dollar has depreciated against ma#or currencies. H' ress >elease on the sourcesof variation in foreign exchange reserves is separately issued. (ii) 't the end of une **+, outstanding foreign exchange reserves stood at 012 3<. billion



J;K I&DIB'%>1 F I&DI'A1 ''&B; F 'K@;&%1

'(()%(

'((%(+

'((%(+ "-&".&

'((+%-("-& ".&

@erchandi"e %rade

;xports "/ on Bo. basis&

0ro1th ate "percent&

4.+ <.6 65.*-.*

Imports "/ on Bo. basis&0ro1th ate "percent&

5<. 6.5 6.+-+.3

Brude il rices, er arrel "IndianBasket&

=+. 4.6 4.435.+

Trade Balance "/billion&

-+.3 -+.6 -5.6-3.*

Invisibles

&et Invisibles "/ Billion& =6.3 4+.3 .6*.

&et Invisibles 1urplusC%rade Deficit ".ercent& 4.6 =<.* =.5==.=

Invisible >eceiptsCBurrent >eceipts ".ercent& 6=. 64. 66.6+.+

1ervices >eceiptsCBurrent >eceipts ".ercent& 4.3 5*.* 3.4.+

rivate %ransfersCBurrent >eceipts ".ercent& 5.4 5.= 5.4=.

Burrent 'ccount



Burrent >eceipts"/ Billion& 56.4 55=.= 44.==.<

Burrent ayments

"/ Billion& 55.4 53=.3 +=.

45.5

Burrent 'ccount alance "/ Billion& -=.* -+.4 -+.*-<.4

Bapital 'ccount

Gross Bapital Inflo$s "/ Billion& 655.* 5*.< +*.+=4.<

Gross Bapital utflo$s

"/ Billion& 5<.* +5.5 =+.=

=.4

&et Bapital Flo$s "/ Billion& *4.* +. .3.=

&et FDIC&et Bapital Flo$s ".ercent& 6.5 +.5 4*.<*.6

&et ortfolio InvestmentC&et capital Flo$s

".ercent& =.6 -<5.6 -5=.4.=

&et ;BsC&et capital Flo$s ".ercent& .* 4+. 5.-<.5

>eserves

Import Bover of >eserves "In months& 6.6 *.5 5.5.6

utstand ing >eserves as at end pe riod "/

Billion&5*+.= <.* 5.

3<.



$ross 5apital Inflo1s and utflo1s (In @ +illion)

FED2

$ross Inflo1s $ross ut flo1s

April2Marc1 April2Marc1

3<<92

<: P

3<<92

<:

;?0=

;PR=

3<<:20<

;?0= ;P=

3<<92

<: P

3<<92

<:

;?0=

;PR=

3<<:2

0<

;?0=

;P=

/orei@n

Direct

Inestment

3@2 1213C =@12 1C@2 31C0 2CC=

Portfolio

Inestment12@1 "0C@" 3@2 1"2@ ""=C 303C

External

Assistance,0"2 =0= 21 2,"0" C3C

External

ommercial

Borro>in@s

1,32 2C@0 20=2 C,22" 12=3 2""

NRI

Deposits3C,0= =0@3 111C2 32,C== 2"= =3"

Bankin@

capital

excludin@

NR

Deposits

2C,=0= 12= ""0 3=@ 1100C =

'1ort2term

trade

redits

3=,C3" 101C@ 1012@ "2= CCC= 13211

Rupee Det

'erice0 0 0 101 30 23

*t1er

apital12,3=1 21C@ 1@3@ 210 2@C 32@

(*(A) 4<356 :<895 8959: 3:440< 8:84: 80864



7

Business 2er4ices (In @ +illion)

Item

'eceipts Payments

April2Marc1 April2Marc1

3<<92<: P

3<<82

<9PR

3<<72<8R

3<<92<: P

3<<82

<9PR

3<<72<8 R

(rade

Related2,00 2233 132 1,@"2 22 101

Business &

Mana@ement

onsultancC

","C ""33 ""C@ 3,12 3@3 3""

Arc1itectural

En@ineerin@

& ot1er

(ec1nical

1,C= 31"" 3"C 3,10@ 31C3 302

Maintenance

of *ffices2,=0 2@1 2@3 3,23 3,"=@ ",032

*t1ers ",@C "100 2@" 3,C2@ ",10 3,22

(*(A)0736

0

0788

005655

0637

:

0780

606977



Need for exports & imports

Iorts and Eorts o% goods doinate the interdeendence o% countries

in the -orld econo+. Eorts are the art o% a countr+>s doestic

roduction that is sold to residents o% other countries. Iorts are the art

o% a countr+>s doestic consution and/or inestent that is urchased

%ro %oreign roducers.

n export and import is 4ery much necessary for a country& Because if a country had

no import or export# they 1ouldnAt !e a!le support themsel4es& Import is 1hen a

country !rin6s thin6s in that they canAt supply& nd export is 1hen a country 6ets

paid to 6i4e a1ay extra stuff they ha4e& Jithout import and export# a country 1ould

only ha4e 1hat they could supply on their o1n&

In order to de4elop country;s economy# it has to import 1hat it doesn;t produce& Thepayment for all these imports can !e done only throu6h exportin6 the products and

earnin6s throu6h 4alua!le forei6n exchan6e&

NEED */ IMP*R(' IN INDIA

;n the iorts side, India has *een in a disadantageous osition,

adanced countries -hich are caa*le o% roducing and selling

alost eer+ coodit+ at lo- rices. :his eant that India could

not deelo an+ industr+ -ithout rotecting it %ro %oreign

coetition.

Iorts are essential to rotect doestic industries and to roote

industrial deeloent.



Since indeendence, the goernent o% India has *roadl+

restricted %oreign coetition through a 'udicious use o% iort

licensing, iort 5uotas, iort duties and in etree cases, een

*anning iort o% seci%ic goods.

NEED */ EP*R(' IN INDIA

:o a+ %or its iorts and to iniie deendence on %oreign countries,

eansion o% eorts -as er+ essential. :here are an+ good reasons

%or eorting9

:he %irst and the riar+ reason %or eorting are to earn %oreign

echange. :he %oreign echange not onl+ *rings ro%it %or the

eorter *ut also iroes the econoic condition o% the countr+.

:he coanies that eort their goods are *elieed to *e ore

relia*le than their counterart doestic coanies assuing that

eorting coan+ has surie the test in eeting international

standards.

4ree echange o% ideas and cultural no-ledge oens u iense

*usiness and trade oortunities %or a coan+.

;ne starts isiting custoers to sell one>s goodsF he has an

oortunit+ to start eloring %or ne-er custoers, state!o%!the!art

achines and endors in %oreign lands.



Chapter-2

Objectives

Methodology



*jectie of studC Pri#ar$ O%ecti'e

:he ain o*'ectie o% stud+ is to loo a%ter the attern o% to*acco

eorting rocess in India and to hae a *rie% no-ledge on eort

docuentation rocedure.

Seconar$ O%ecti'e

:o understand a*out the organiations suorting the to*acco industr+and to get %ailiar -ith arious ters, a**reiations, and other

terinolog+ used in the eort rocess.

Met1od of studC

:he data collection has inoled in t-o stes

Pri#ar$ ata

:he riar+ data -as collected *+ interacting -ith the eecuties and

riar+ sta%%ing eole in the coan+.

Seconar$ ata

:he secondar+ data -as collected %ro 'ournals, internet, *oos, ne-s

aers and soe others rescri*ed *oos as suggested.



'cope & limitations of t1e studC

:his ro'ect -or is %ocussed and con%ined to understanding actiities

inoled in the to*acco eort rocess and related eort docuentation.

Stud+ on the organiations suorting the to*acco industr+ and eort

trade is iniied to gie ore iortance to the Eort

$ocuentation rocess.



Chapter-3

Company profile



Chapter-4

Indian

Tobacco industry



Indian (oacco IndustrC

Introduction

7ight %ro the *eginning o% 1C th centur+, :o*acco has *een la+ing an

iortant role in the %ield o% international trade. :o*acco is one o% the

ain coercial cro o% India, to*acco consution is er+ high

throughout the -orld as -ell as the deand o% to*acco is ultiate. to

eet the deand o% consuers, an+ countries as India, <hina, Brail

are roducing huge aount o% to*acco eer+ +ear.

India is the third largest roducer and eighth largest eorter o% to*acco

and :o*acco roducts in the -orld. Ghile India>s share in the -orld>s

area under to*acco cro has risen %ro = to 11 in the last 3 decades,

its share in roduction has inched u %ro to = in to*acco Industr+.

Asia and Aerica, together account %or C o% -orld>s roduction o%

to*acco. <hina, SA and India are the three leading to*acco!roducing

nations in the -orld.

Production area

Andhra #radesh, u'arat and 6arnataa account %or the a'or ortion

(0) o% ra- to*acco roduction in India. :hese states roduce 4<H

to*acco, *idi to*acco, natu to*acco, cigar to*acco, cheroot to*acco and

snu%% to*acco. ;ther states -hich anu%acture to*acco is Maharashtra,

;rissa, :ail &adu, Gest Bengal, # and Bihar.

#ro>t1 promotional actiities

4<H (4lue cured Hirginia) to*acco roduction and is regulated *+ :he

:o*acco Board. A*out 0.C n gro-ers are engaged in to*acco

roduction. Eas+ aaila*ilit+ o% to*acco has heled deeloent o%

cottage industr+ %or anu%acture o% che-ing to*acco, cigar, cheroot, %luetc. Bidi industr+ roides elo+ent to "." n rural eole, ostl+



-oen and the cigarette industr+ roides elo+ent to 0. n

eole.

:he to*acco industr+ in India ainl+ coers anu%acturing o% cigarettes,

*idis, cigars, cheroot, hooah, snu%% and other che-ing to*acco liearda, gutha, and an asala.

(Cpes of (oacco

:o*acco is ainl+ concentrated in the states o% Andhra #radesh,

6arnataa, u'arat, Maharashtra, Bihar, :ail &adu, and Gest Bengal

etc. <igarette to*acco is ainl+ cultiated in Andhra #radesh and

6arnataa -hereas Bedi to*acco is gro-n in u'arat, 6arnataa, and

Maharashtra. <igar and cheroot to*acco are also gro-n in the states o%

:ail &adu, Andhra, and -est Bengal. -hereas che-ing to*acco is

gro-n in :ail &adu, u'arat , Bihar, -est Bengal, and utter #radesh.

ooah to*acco is gro-n in utter #radesh and -est Bengal.

(oacco mainlC exists in t>o tCpes

• 4lue cured to*acco9

• &on %lue cured to*acco9

1) 4lue cured Herginia 9 :his ind o% to*acco is ostl+ used in the

rearation o% cigarettes. Most o% the countries are concentrating to

roduce 4<H to*acco due to high deand in it.

2) &on %lue cured to*acco9 :his ind o% to*acco is generall+ used %or

anu%acturing *idis, cigars, an asala, snu%% and che-ing to*acco.

:here hae *een signi%icant iroeent in the areting o% 4<H

to*acco -ith the esta*lishent o% :o*acco Board in India. Ecluding

4<H to*acco the ethod o% areting o% to*acco in India di%%ers %ro

t+e to t+e and state to state.



In the case o% 4<H to*acco the goernent o% India and the :o*acco

Board announces iniu suort rice eer+ +ear at the *eginning o%

the to*acco areting season -ith an o*'ectie o% rotecting the interesto% the gro-ers o% 4<H to*acco in India.

Different tCpes of / toacco arieties

'*I) :Y#ES! (Its characteristics, 'urisdiction, a'or arieties gro-n,aerage +ield, eort otential, cro season)

In India, 4<H (4lue <ured Hirginia) :o*acco is cultiated ainl+ in thestates o% A# 6arnataa %ollo-ed *+ ;rissa Maharashtra in sall

areas in arious soil ones under aried rain%all conditions.

And1ra Prades1 ! (including ;rissa Maharashtra regions)

Nort1ern Black 'oils ;NB'=

:he *lac soils located in the districts o% 6haa, 6arinagar,Garangal, East and Gest odaari constitutes the &orthern Blac soils.:he cro is gro-n under rain %ed conditions resentl+ in around 200hectares. :he cro is generall+ lanted in ;cto*er and harested in $ec!4e*. Gith cultiation o% high +ielding arieties er hectare +ields are u

to 100!1C00 6gs. :he suita*le arieties %or cultiation in this soil oneare ea, and H:11. :he to*acco roduced is good *odied -ithlength+ lea%, leon orange %lash+ in colour -ith ediu nicotine>s. :heto*acco is ostl+ re%erred *+ <IS and Eastern Euroean Marets. :hedoestic cigarette industr+ uses er+ little 5uantit+ o% to*acco %ro thisregion.

entral Black 'oils ;B'=

:he *lac soils eisting in 6rishna and untur districts o% Andhra#radesh and adchiroli district o% Maharashtra state constitute the central

*lac soils. :he ain arieties gro-n are o-tai, ea, and H:11.:he cro is lanted in ;ct!&o and harested in $ec!4e*.

:he cro is gro-n under rain %ed conditions resentl+ in around 200hectares. :he +ields are u to 100 to 1@0 6gs/a. :he to*acco

roduced in this tract is alost siilar to that o% &orthern *lac soils.#re%erred %or eorts ostl+ to <IS, Eastern Euroean and Gest Asia

&orth A%rican arets, 8aan also used to iort sia*le 5uantities o%to*acco %ro select areas o% this region in the ast. :he doestic



cigarette industr+ also uses siea*le 5uantit+. o-eer, the area under4<H :o*acco cultiation is graduall+ decreasing as gro-ers ares-itching oer to alternatie cros %or arious reasons.

'out1ern Black 'oils ;'B'=

:he *lac soils resent in #raasa and &ellore districts nearer to thecoast constitute the Southern *lac soils. #resentl+ the cro is cultiatedin a*out 30,000 hectares. :he cro is lanted in ;ct!&o and harestedin $ec!4e*. :he oular arieties gro-n are ea, H:11 and Siri.:he aerage +ields are around 100 6gs/ha. Gith the cultiation o% high+ielding arieties, the aerage roductiit+ leels are on increase at a*out100!1@00 gs er ha. :he to*acco roduced is leon to leon orangein colour and ediu *odied. :his to*acco is rated *etter in 5ualit+ thanthe &BS/<BS to*accos. It is highl+ aena*le %or *lending -ith other

st+les o% to*acco in <igarette anu%acturing and hence re%erred %oreort to Gest Asia, &orth A%rican countries (Eg+t and i*+a), &ealand to <IS countries. Siea*le 5uantities are also eorted to GestEuroe. al% o% the roduction goes %or doestic cigaretteanu%acturing.

'out1ern )i@1t 'oils ;')'=

:he light soils eisting in #raasa and &ellore districts constitute thesouthern light soils (SS). #resentl+ this cro is cultiated in a*out

@,000 hectares. :he soils are suita*le %or gro-ing good 5ualit+ to*accoas a sei onsoon cro. :he suita*le arieties are 8a+ashree, ea andH:!11. :he cro is lanted in Sete*er!;cto*er and harested in$ec!8an.

:he +ields are around 1000 gs/ha. Erratic rain%all and drought situationsgenerall+ a%%ect +ields in this one. :he lea% is leon to leon orange incolour, thin to ediu *odied, rie and oen grain -ith good aroa andlo- in nicotine. :his cro is re%erred %or eort to 6, South East Asiaand other EE< countries. All the M&<s re%er this to*acco. :hedoestic anu%acturers use su*stantial 5uantities o% this region to*acco%or hoe consution.

Nort1ern )i@1t 'oils ;N)'=

:he light soils eisting in East and Gest odaari and arts o%6haa districts constitute the &orthern light soils (&S). #resentl+this cro is cultiated in a*out 2,000 ha. :he soils are sand+ to sand+

loa. :he cro is raised -ith the hel o% C! irrigations, roducing sei%laour%ul to*acco. :he cro is lanted in Set!;ct and harested in $ec!



4e*. :he +ields are ranging *et-een 100!2000 gs/ha deending onstage o% toing. :he suita*le arieties are 632@, 1@/103, M<&air!12,old Strea and &S!". :he lea% is ediu to hea+ *odied, rie oengrained, orange to dee orange in colour and %lu%%+ in nature. Mostl+

eorted to 6 other Euroean countries South East Asia. All theM&<s re%er this to*acco. Siea*le 5uantities are also used in doesticanu%acturing. :he ight soils eisting in the 7a+agada district o%;rissa and Hi'a+anagara district o% Andhra #radesh constitute Easternight Soils and to*acco is cultiated in an area o% around 200 ha. Andthe characteristics o% to*acco roduced is alost siilar to that o%

&orthern ight Soils o% Andhra #radesh.

KARNA(AKA

Karnataka )i@1t 'oils ;K)'=

:he light soils eisting in M+sore, assan, Shioga, $aangere, <oorg,<hiaagalore and <hitradurga districts constitute the light soils o%6arnataa. :he cro in this transitional one is raised as a onsoon cro-ith su%%icient rain%all during the cro gro-th eriod. #resentl+ the crois gro-n in a*out 000 hectares. :he cro is lanted in the last -ee o%Ar!Ma+ and harested in 8ul+!Aug.

#er ha +ields are around 120 gs. :he arieties under cultiation are

6anchan, Bha+a, 632@, 7atna and 6S:!1=. :he to*acco roduced islight to ediu *odied, leon orange to orange in colour, so%t in nature,oen grained -ith nicotine o% 1. to 2.2. Gest Euroean, soeA%rican, Middle East and South East Asian countries ostl+ re%er thisto*acco.

Different tCpes of / toacco arieties

Brie% note

on the t+eo% :o*acco

:his to*acco is

o% neutralcharacter and

*lends -ell-ith an+to*acco

It is rie

to*acco, sei!%laour%ul to%laour%ul -ithgood aroa andecellent aging

roerties

:his to*acco is

a good %iller-ith lo-nicotine and

*lends -ell -ithan+ to*acco.

:his is lo-

nicotine, goodneutral %illerand *lends -ell-ith an+to*acco.

#lantation Mid ;cto*er to%irst -ee o%

&oe*er inAndhra

#radesh.Earl+ Ma+ in

Earl+ ;cto*er Sete*er to;cto*er

Earl+ Ma+



6arnataa

Mareting 4e*ruar+ to8une in Andhra#radesh.

Sete*er to4e*ruar+ in6arnataa

4e*ruar+ to 8une 8anuar+ to 8une Sete*er to4e*ruar+

#h+sical <haracteristics

<olor 9 eon eon!;rangeto ;range

eon!;rangeto ;range

9 eon!;range to;range

ea% sie 9 Mediu toarge

arge Sall toMediu

arge

#oreHolue(l/gra) 9

0.13 to 0.1 0.13 to 0.1 0.13 to 0.1 0.13 to 0.1C

4illingHalue(cc/gra) 9

2.@ to 2. 2.@ to 3. 2.@ to 3. 2.= to 3.

<heical <haracteristics

&icotine 9 1. to 2.2 1. to 2.2 1. to 2.2 1.2 to 2.

7educingSugars 9

10 to 1 10 to 1 10 to 1 10 to 23

<hloride() 9

9 0. to 0.= 0. to 1. 0. to 0.= 0.2 to 0.@

(oacco IndustrC

:o*acco industr+ in India contri*utes in an uni5ue anner to seeral

iortant %acets o% the Indian econoic coering reenue, eort,

elo+ent and $# gro-th.

Gorld to*acco deand is eected to increase until the +ear 2010 due to

oulation and incoe gro-th, *ut at lo-er rates than in the ast,

according to a ne- stud+ u*lished *+ 4A; toda+.

Ghile in deeloed countries to*acco soing is set to continue to

decline, in deeloing countries consution -ill increase, the reort

said (#ro'ections o% to*acco roduction, consution and trade to the

+ear 2010).

Gorld to*acco roduction is ro'ected to reach oer C.1 illion tonnes



o% to*acco lea% in the +ear 2010, u %ro .= illion tonnes in 1==C/==.

:his is lo-er than the record to*acco roduction o% 1==2 o% C. illion

tonnes.

:he nu*er o% soers is eected to gro- %ro 1.1 *illion in 1== toaround 1.3 *illion in 2010, according to the reort. :his is an increase o%

a*out 1. ercent annuall+.

$esite the oerall increase o% to*acco use, 4A; eects consution

er adult to decline *+ around 10 ercent *+ 2010, and indiidual

consution -ill ro*a*l+ *e around 1." g er +ear (%ro around 1.@

g in 2000).

Al+ing an aggressie anti!soing and anti!to*acco olic+, to*accoconsution er erson could een dro *+ 20 ercent, 4A; said.

<onsution er erson is declining in deeloed, and odestl+

declining in deeloing countries, including <hina.

<igarette soing is the ost realent t+e o% to*acco consutionF

anu%actured and hand rolled cigarettes account %or a*out ercent o%

all to*acco consued -orld-ide. Gith around 320 illion soers,

<hina is the -orld>s a'or cigarette consuer.

A*out 100 countries roduce to*acco, the a'or roducers are <hina,

India, Brail, the S, :ure+, Ji*a*-e and Mala-i, -hich together

roduce oer 0 ercent o% the -orld>s to*acco. <hina alone accounts

%or oer 3 ercent o% -orld roduction.

(oacco onsumption

B+ 2010, the share o% deeloed countries in -orld to*acco consution

is ro'ected to *e onl+ 2= ercent (1==9 3" ercent), the share o%

deeloing countries -ill *e C1 ercent.

:he oerall attern o% to*acco consution is in%luenced *+ t-o

diergent trends.

:o*acco deand in deeloed countries is declining slo-l+ and -ill

reach a*out 2.0 illion tonnes in 2010. :his is 10 ercent lo-er than

2.23 illion tonnes consued in 1==. :his can *e attri*uted to a

slo-er oulation and incoe gro-th.



In addition, in deeloed countries and increasing a-areness o% the

daaging health e%%ects o% soing, together -ith the anti!soing

easures o% goernents including intensi%ied anti!soing caaigns,

the *anning o% adertising and increased taation, hae had a strong

negatie e%%ect on consution o% to*acco roducts, the reort said.

But ore to*acco -ill *e soed in deeloing countries, -here to*acco

consution is eected to gro- to .0= illion tonnes *+ 2010 ( %ro

".2 illion 1==C/==). :his is an aerage annual gro-th rate o% 1.C

ercent *et-een 1== and 2010, signi%icantl+ lo-er than the 2. ercent

rate o*sered in deeloing countries *et-een 1=C1 and 1==.

A a'or art o% the ro'ected increase in deand is eected to *e in the

4ar East, articularl+ in <hina. :he share o% <hina in total -orld

to*acco deand is liel+ to reain around 3C ercent in 2010.

In India, the second ost iortant to*acco consuer, soing o%

conentional cigarettes accounts %or onl+ 2 ercent. Most eole

consue to*acco in the %or o% non!cigarette ites such as hand!rolled

*idis, che-ing etc. :otal deand %or to*acco in India is liel+ to

continue to increase, *ut ore slo-l+ than in the reious decades.

In atin Aerica, to*acco use in 1== -as a*out 0." illion tonnes, o%

-hich 'ust oer hal% -as in Brail. $eand in the region is eected to

increase odestl+ until 2010, and ost o% the increase -ill occur in

Brail.

In A%rica, total to*acco deand increased in the 1==0s -ith record

gro-th o% 3. ercent er +ear. ro-th %or the eriod to 2010 is

eected to continue at a siilar rate.

In the &ear East, the deand %or to*acco is eected to gro- at 0."2, a

gro-th rate a little lo-er than eerienced in the 1== <he-ing to*acco

has *een a tradition in India %or centuries. ;% the total aount o% to*acco

roduced in the countr+, around " is in the %or o% che-ing to*acco,

3 as *idis, and onl+ 1" as cigarettes. :hus, *idis, snu%% and

che-ing to*acco (such as guta, haini and arda) %or the *ul (@)

o% India>s total to*acco roduction. In the rest o% the -orld, roduction

o% cigarettes is =0 o% total roduction o% to*acco related roducts.



:he er caita consution o% cigarettes in India is erel+ a tenth o% the

-orld aerage. :his uni5ue to*acco consution attern is a

co*ination o% tradition and ore iortantl+ the ta iosed on

cigarettes oer the last 2 decades. <igarette soers a+ alost o%

the total ta reenues generated %ro to*acco.

India is the second largest roducer o% to*acco in the -orld a%ter <hina.

It roduced C2 gs o% to*acco in 4Y03. o-eer, India holds a

eagre 0.C share o% the S ? 30 *n glo*al trade in to*acco, -ith

cigarettes accounting %or o% the countr+>s total to*acco eorts.

$esite *eing the second largest roducer, India is onl+ the ninth largest

eorter o% to*acco and to*acco roducts in the -orld. ;ut o% the total

to*acco roduced in India, onl+ one!third is %lue!cured to*acco suita*le

%or cigarette anu%acturing. Most o% the to*acco roduce is suita*le %or

the anu%acture o% che-ing to*acco, *idis and other chea to*acco

roducts, -hich hae no deand outside the countr+. In India, three

a'or <igarette la+ers doinate the aret, riaril+ I:< -ith C2

aret share, od%re+ #hillis -ith 12 and HS: -ith share o% the

aret.



Chapter-5

Importance of

export

documents in trade



(1e Importance of Export Documentsin (rade

:rade oerseas needs the suort o% eort docuents. ;erations -ith

%oreign countries are ade er+ cole, the sellers ust elain -hat

the+ are selling and the *u+ers ust no- -hat the+ are *u+ing. 4or that

reason, -e use the %ollo-ing eort docuents9

Soe o% eort docuents are used %or coercial uroses lie *ills,notes and -eight acing. :here are also docuents to guarantee the

5ualit+ o% -hat is *eing eorted.

Insurance docuents certi%+ -hat is coered *+ insurance. Bills o% lading

are eales o% transort docuents.

:here are di%%erent eort docuents that do not o%%er the sae *ene%its

to each user.

etters o% credit are an instruent that guarantees to the seller that he or

she -ill *e aid %or the erchandise sent -hen it atches the criteria set

in the contract *+ the iorter.

Most are irreoca*le and con%ired, -hich eans that the+ cannot *e

odi%ied *ut -ith the consent o% the arts inoled. Additionall+, these

docuents reliee the eorter %ro an+ -orr+ a*out non!a+ent.

:he eort docuents can *e reoca*le or irreoca*le, con%ired ornoti%ied.



7eoca*le docuents gie the holder the a*ilit+ o% odi%+ing the

-ithout the consent o% the other arts. Bans a+ also resere the right

to gie or re%use a+ent.

Irreoca*le9 the *an cannot reerse its coitent, -hateer thechanging circustances o% his client, unless the agreeent o% all arties

concerned.

&oti%ied docuents gie rotection to the eorter *ut onl+ to a certain

degree. :he+ -ill not coer %or natural, olitical or trans%er!related

ro*les.

<on%ired, -here the coitent o% the *aner o% the iorter is

suorted *+ a *aner in the countr+ o% the eorter. :he eorter ust%ull+ resect its o*ligations and it is guaranteed to *e aid.

Eorters run a series o% riss -hen enturing into ne- lands. 4irst o% all,

the+ ris not *eing aid *+ the iorter in the %oreign countr+.

Secondl+, i% the+ do not no- the olitical and econoic situation o% thecountr+ the+ are eorting to, the+ ris losing their one+. Another ris

the+ tae is related to the echange rates. Eort docuents eist to

reliee these riss.

Eort docuentation is iortant, as it coers all areas o% shiing

ites, %ro acing and la*elling to insuring the goods. Iortant ites

are *eing shied *+ rando carriers to %ar!o%% custoersF itKs necessar+

to %ile accurate aer-or to ensure delier+.

EP*R( INEN(IE'

:he goernent o% India has %raed seeral schees to roote eorts

and to o*tain %oreign echange. :hese schees grants incentie and

other *ene%its. :he %e- iortant eort incenties, %ro the oint o%



ie- o% indirect taes are *rie%ed *elo-9

1. 4ree :rade Jones (4:J).

2. Electronic ard-are :echnolog+ #ar/ so%t-are technolog+ ars.

3. Adance icense / $ut+ ecetion Entitleent schee($E4<)

". Eort #rootion <aital oods Schee (E#<).

INDIAN EP*R('

Indian eorts hae gro-n at a rate o% nearl+ 22. Soe coodities

hae en'o+ed %aster eort gro-th than others. Soe o% the ain

Indian>s eorts are

Exports C @/== !illion f&o&! (..8 est&)

$oods exported C 2oft1are# petroleum products# textile 6oods# 6ems and

je1elery# en6ineerin6 6oods# chemicals and leather

manufactures&

+ain export partners C *2 /&# *E 8&9# 5hina 8& (..?)

Imports C @& !illion f&o&! (..8 est&)

Import 6oods C crude oil# machinery# 6ems# fertili3er# chemicals



So%t-are, :o*acco, <otton, :etiles, 8ute good, tea, <o%%ee, 7ice,

Gheat, <ocoa roducts, 8as 8uices resered egeta*les etc.

India eorts its goods to soe o% the leading countries o% the

-orld such as9

SA

BEIM

7SSIA

<I&A

RE'ERE' */ /*RE

:he %oreign echange aret (4;7ED) is a -orld-ide decentralied

%inancial aret %or the trading o% currencies. 4inancial centres around

the -orld %unction as anchors o% trading *et-een a -ide range o%

di%%erent t+es o% *u+ers and sellers around the cloc -ith the ecetion

o% -eeends. :he %oreign echange aret deterines the relatie

alues o% di%%erent currencies.

:he riar+ urose o% the %oreign echange aret is to assist

international trade and inestent, *+ allo-ing *usinesses to conert one

currenc+ to another currenc+. 4or eale, it erits a S *usiness to

iort Euroean goods and a+ Euros, een though the *usiness>s

incoe is in S dollars. It also suorts seculation, and %acilities the

carr+ trade in -hich inestors *orro- lo-!+ielding currencies and lend

(inest in) high!+ielding currencies and -hich a+ lead to loss o%

coetitieness in soe countries.



Chapter-6

THEORETICAL

FRAMEWORK OF

EXPORT

PROCEDURE



(!E*RE(IA) /RAME-*RK */

EP*R( PR*ED%RE

EP*R( PR*ED%RE

<hoosing the *u+er.

7e5uireent o% license.

Saling.

&egotiations.

Indication letter.

4inancial arrangeents.

#urchase o% to*acco.

Insurance.

<lassi%ication o% to*acco

:hreshing rocess.



4uigation.

Insection.

Shiing instructions.

Shients.

:hese are the stes inoled in eort rocedure. et us see

into a *rie% detail9

!**'IN# (!E B%"ER 9

Be%ore entering into trade the sulier has to choose the *u+ers> aret

-here their roducts hae ore deand. :he trader has to no- the

geograhical, olitical and social situation o% the countr+. I% the trader

satis%ies -ith the conditions o% the countr+, then the+ -ill aintain traderelations -ith that countr+.

RE?%IREMEN( */ )IENE

A%ter selecting the aret -e hae to tae license to eort goods %ro

one countr+ to another countr+. 4or eort o% goods the %ollo-ing

license should *e needed.

1) Eort Iort license.

2) :o*acco Board license.

3) 7A: (sale ta) license.



'AMP)IN#

According to the re5uireent o% the *u+er the eorter hae to see the ractical aaila*ilit+ o% the roduct. :he 5ualit+ o% the roduct ust *e

no-n to the *u+er through saling. :he aced sales are sending

to the *u+er %or %uture eidence. :he sales are send to *u+er, agent.

;ne

sale ust *e -ith the eorter -hich is use%ul to chec the 5ualit+ o%

eorting goods.

Dependin6 upon the re7uirement of the !uyer samples 1ith chemistry (nicotine#

su6ars H chlorides) must !e dispatched in lo1er 7uantity (=.6ms) throu6h air

car6o# E-mail or !y sendin6 photos as 6rade 1ise and !y >eepin6 a counter sample

1ith us&

5ounter 2ampleC-aing a sale o% the eorted roduct -ith us and the

sae sale -ith the iorter et in the dee %ridge to atch the

5ualit+ -e send in *ul to the iorter.

A sale -ith us sae sale -ith <ustoer

NE#*(IA(I*N'9

;nce the sales are acceted then negotiation o% rice a+ent

conditions is done. Ge -ill get indication letter in ters o% grades. In



general negotiations re%ers to

• #rice

• #acing details

• <oercial inoice

• Geight list

A#REEMEN(

A%ter the aroal o% a+ent ters, a contract is ade -ith the

custoer according to his ters and conditions. In order to aoid

disutes, it is necessar+ to enter into an eort contract -ith the oerseas

*u+er. 4or this urose, eort contract should *e care%ull+ dra%ted

incororating corehensie *ut in recise ters, all releant and

iortant conditions o% the trade deal.

:here should not *e an+ a*iguit+ regarding the eact seci%ications o%

goods and ters o% sale including eort rice, ode o% a+ent, storage

and distri*ution ethods, t+e o% acaging, ort o% shient, delier+

schedule etc.

#roduct, Standards and Seci%ications.

Luantit+, Lualit+.

Insection.



:ers o% delier+.

#eriod o% delier+.

:aes, $uties <harges.

:otal alue o% contract.

#acing, a*eling Maring.

:ers o% a+ent.

/INANIA) ARRAN#EMEN(

4or the sae o% eorts -e need soe caital. :hough the caital %ors

are di%%erent, the *ans are *ecoing ain source to roide caital %or

eorts. &orall+ a *an allo-s %inance %or eorts at .C interest %or

the encourageent o% eorts. :he insurance coerage %or eorts is

a*out 10da+s. Ban loan is gien -ith suret+ -hich is called

<;E:E7A ASS7A&<EN.

P%R!A'E */ (*BA*

:o*acco is urchased %ro :;BA<<; B;A7$ through auction

lat%ors. :he ideal 5uantit+ o% to*acco to *e handled in an auction

lat%or in Indian conditions is to @ illion gs. :he to*acco *oard

accets ore than 10 illion 6gs. Aong the arieties the trader has to

select the deanded ariet+. #urchase o% to*acco %ro auction %ors *+

sending :E<&I<A BYE7SN.



)A''I/IA(I*N */ (*BA*

rading o% to*acco

:hreshing o% to*acco

Storage in -arehouses

4uigation

;0= $radin6C !

rading is done as er the re5uireent o% the custoers. A%ter the

*ales are *rought their osition are -atched and according to their

condition the+ are reoed %ro *ales and i% the+ are dried -ater

is srinled oer the lea% and gunn+ *ags are laced oer the to

ee the -et, -hen the+ are haing roer oisture the leaes

are graded as er classi%ication. :hen the+ are searated (and the+

are) aced and taen to threshing lant. :o hae a *rie% idea,

soe o% the grades are as %ollo-s

#radin@ Process

(*BA* PR*E''IN#

:here are arious %ors o% to*acco rocessing ethods. :iing and

threshing is the ain ethod in use toda+. :his is the ost coon

rocessing techni5ue -here the o*'ectie is to reoe the idri*

(*ac*one ste) %ro each indiidual lea% (laina).



;I= (!RE'!IN# PR*E''9

:he rocess o% threshing to*acco is colete and inoles a series o%stes -here the roduct is conditioned -ith heat and oisture to hel the

roduct *ecoe so%t and lia*le.

:he threshers hel searate the idri* %ro the laina *+ a tearing

action -hich is created *+ rotors -ith *oth %ied and rotar+ nies

laced a*oe a shaed *aset o% di%%erent atterns and sies. ;nce this is

done arious air searation deices, no-n as classi%iers, are used to

searate the lights, the laina %ree o% ste %ro the heaiesN, the

laina still attached to the ste.

$ue to the nature o% to*acco lea% not all laina is reoed on a single

ass o% threshing and searating. :here%ore this rocess occurs as an+

ties as re5uired through the rocessing line to ensure aiu

reoal o% laina in as large as ossi*le sies -ith as least daage andstress to the laina as ossi*le. :he industrial standard %or this is

norall+ through stages o% threshing -ith a ar+ing nu*er o%

classi%ier to achiee aiu e%%icienc+.

;nce threshing is coleted all the roducts ass through a dr+ing

rocess -here the colete %lo- o% roduct is su*'ected to heated air

%lo-s, %ro *oth a*oe and *elo- the ediu o% transort o% the

roduct no-n as an aron. ere the contained oisture -ithin each

indiidual article -ill, through ososis, intentionall+ *e drien out o%

the articles to a easured ercentage reaining in the collectie

articles and should aerage out at an een oisture leel. :his is done

%or recise control o% %inal oisture content.



A%ter the rocess the roducts are aced into seci%ic acages and

ared accordingl+ *e%ore shient to custoers.

?%A)I(" *N(R*)

:here are " stages o% 5ualit+ test. :he+ are

1) #article sie distri*ution stage (#S$).

2) Ste test

3) %i*re

Process

A sale o% 3g %ro redr+er is collected the+ are droed into

article sie distri*utor, -here it distri*utes the laina into resectie

*oes according to its laina sies. :here are t+es o% sies in -hich 1

inch, O inch, P inch, and 1/ inch torn/dust. :he total tie taen in this

stage is C. in .-eights o% each *o is taen and noted

'tem test

:he total tie estiated is "in. here the sale is droed into the

thresher -here the ste laina gets searated. :he+ are assedthrough <4< -here laina is *lo-n u ste assed do-n is collected

and -eight is noted.

/ire

In the 1st *o there ust not *e an+ stes, i% there are an+ stes the

threshing ust *e stoed. :he ste control ainl+ deends on 5ualit+

control. I% ore ste are aearing than the target -eight then the



5ualit+ in charge instructs to increase cutting the lea% to chec %or less

stes

)aoratorC

In the rocess o% threshing sales %ro dri%t laces are collected the+

are grinded into o-der *+ grinding achine. 10gs o% each sale is

taen into sall *oes haing holes on to and -eight is noted. :hen

the+ are et in B7ABE&$E7. A%ter 30 in the+ are taen out the

-eight is also noted. :he reduction in -eight is due to decrease in

oisture content. :he reaining is %i*re content to iroe 5ualit+

that the in charge suggests the redr+ing oerator.

:hose *oes are et in ;en>s roo, results can *e %ound in 2" hrs.

At the end o% the threshing rocess, the leaes that -e *ought a%ter

grading are utilied %or di%%erent uroses, ecet &:7M. A%ter all the

rocess is oer the %loor is neatl+ s-ied and the scra collected is also

sold to doestic *u+ers and is also eorted, B+ this -e can sa+ that

nothing is -asted in this threshing rocess.

A%ter the retr+ing rocess, the stris are ressed into *ales, t+icall+

sied %or <" cases, occasionall+ %or hogsheads or other sies.

'crap & 'tem9 :he scra that is o*tained a%ter threshing is also aced

and sold in the doestic aret %or the usage o% roducing Beedis and

#an etc.,

;ii= '(*RA#E IN -ARE!*%'E'9



A -arehouse is a coercial *uilding %or storage o% goods. Garehouses

are used *+ anu%acturers, iorters, eorters, -holesalers, transort

*usinesses. <ustos, etcQQ ere, the threshed to*acco is stored in the

-arehouses until the+ are eorted.

;iii= /%MI#A(I*N

4uigation is a ethod o% est control that coletel+ %ills an area -ith

gaseous esticides or %uigants to su%%ocate or oison the ests -ithin. It

is utilied %or control o% ests in *uildings soil, grain, and is also used

during rocessing o% goods to *e iorted or eorted to reent trans%er

o% eotic organiss. :he %uigated containers should *e enclosed %or

a*out C2hrs o% eorting.

IN'PE(I*N9

7andol+ checing o% the aced cartons in eroes or ones to eri%+ the

5ualit+ -hether the+ are atched -ith the sale or not.

Insection *+ custoer -hich is called as #7E!SI#I&N insection.

;ne technical erson and custoer cae to coan+ and insect the

storage aterials randol+. e a+ as an+ cheistr+ details. :he

trader has to ossess a sale cigarette aing achine to chec the



leels o% chlorides ordered *+ *u+ers. :his is called SM;6E :ES:N.

Pre2s1ipment Inspection & s1ippin@ instructions !

7eresentatie o% the custoer -ill isit the consignent i.e., is called.

I% the sale atches -ith the consignent, then he allo-s %or the

eorts. :hen onl+ he can issue the shiing instructions.

'!IPPIN# IN'(R%(I*N'9

Luantit+

&u*ering

$estination address

Baner address

4inal destination address

#a+ent ters

:he docuents are arranges according to the shiing instructions.

*N(RA( /*R #**D'

At the tie o% deliering the roduct, a docuent is signed *+ the *u+er

and eorter i.e.., *oth the arties. :he trader should get the erission

%ro custos agenc+ %or clearance.

EP*R( 2



As er the contract estiated tie le%t %or the delier+, the eorter tals

to a liner -ho la+s a ain role in looing a%ter the %urther actiities.

:here are t-o ain actiities

1. 4;B (4ree on Board)

2. <I4 (<oission Insurance 4reight)

/*B ;/ree on Board=9 ! :his is an actiit+ -here the eorter has the

resonsi*ilit+ oer the goods uto receiing the *ill o% lading (B/).

I/ ;ommission Insurance & /rei@1t=9 ! :his is an actiit+ -here the

eorter has the resonsi*ilit+ oer the goods till the+ reach the iorter.

According to our order the liner roides the eans o% transort %or the

loading o% cartons %ro the -are house into the container and *ring the

to Inland container Area (I<A). :his area is under the control o% the

custos deartent. :he custo dut+ is to chec the container -hether

it is er%ect or not as er the grades, coodit+, 5uantit+ then he seals

the container issues the Shiing *ill, S$4 %or declaration %or.

:hen the container is %or-arded to liner -ho gies the *ill o% ading

(B/). Be%ore issuing the B/, it is the dut+ o% the liner to ae the

container sure that container has receied the %ollo-ing certi%icates.

1. 8$ Board o% serices

2. 4uigation <erti%icate

3. <erti%icate o% ;rigin.

$D Board of serices9 ! <hecs the container roerl+ -hether

<ontainer has no sell, holes, roerl+ aced, then issues a

certi%icate according to it.



/umi@ation ertificate9 ! :his deartent roduces a certi%icate that the

container is %ree %ro *eetles, the oisture content is roerl+

aintained.

ertificate of *ri@in9 ! :his certi%ies that the goods in the cartons are

%ro the resectie origin countr+ -here the+ are originated.

4inall+ the containers are laced in the essel, and then all the

certi%icates are send to eorter. :hen the eorter reares the

reaining docuents as ordered *+ the *u+er.

Examples9 ! a) #h+to sanitar+

*) S# %or %or to*acco eorts, i% necessar+ ased *+ the *u+er.

:hen *+ adding those docuents eorter reares re5uired docuents

as <oercial Inoice, Sight dra%t etc., then %inall+ a%ter lacing all the

docuents in the order eorter su*it those docuents to the *an %orthe one+.

ere the *an ainl+ loos %or <oercial inoice, Sight $ra%t, ED

co+ o% shiing *ill roduced *+ the custos deartent, later the+

gie the one+ re5uired.

Post s1ipment Inspection9 !

A%ter reaching the ort, the reresentatie o% custoer checs -hether

the to*acco is as er the sale or not, ercentage o% the &:7M in

to*acco the ercentage o% ests (*eetles) in the to*acco. I% the *eetles

are ore than %ied aount then he a+ as %or legal clai or return the

goods.



M*DE */ PA"MEN(

Financial assistance to the exporters are generally provided by Bommercial an7s, before shipment as $ell as after shipment of the said goods. %he assistance provided

before shipment of goods is 7no$n as per-shipment finance and that provided after the shipment of goods is 7no$n as post-shipment finance. re-shipment finance is

given for $or7ing capital for purchase of ra$-material, processing, pac7ing, transportation, $are-housing etc. of the goods meant for export. ost-shipment finance isprovided for bridging the gap bet$een the shipment of goods and reali"ation of export proceeds. %he latter is done by the an7s by purchasing or negotiating the export

documents or by extending advance against export bills accepted on collection basis. !hile doing so, the an7s ad#ust the pre-shipment advance, if any, already granted

to the exporter.

. et ter of Bredi t (B)

. Documents 'gainst ayment (D)

etter of Bredit (B)8- letter of c redit is a document issued mostly by a financial institution, used primarily in trade finance, $hich usually provides an irrevocable payment

underta7ing.

%his is B is again of t$o types- a) **L B b)=*-4*LB

IN'%RANE

Be%ore eorting goods the trader has to re%er to tae insurance coer

%or eorting the goods *ecause 4:7E IS &<E7:AI&N. Business

should *e ris %ree. :o ensure this Insurance is aid to goods those are

iorted. :here are di%%erent t+es o% insurances nael+

1. :ransit Insurance

2. ;erseas :ransit Insurance

3. #re!shient Insurance

". #ost! shient

:he 4irst t-o insurances are checed a%ter the eorters iorters.

:he reaining t-o insurances are looed a%ter oernents.

1. (ransit Insurance9 ! :he insurance that is aid %or transortation

on roads is :ransit insurance. :his insurance is coonl+

no-n as Insurance on -heels

2. *erseas Insurance9 ! :he insurance that is aid %or

transortation in -ater.

:he #re #ost shient insurances are looed a%ter Eort <redit

uarantee <ororation (E<<)

3. Pre2s1ipment Insurance9 ! :he insurance aid *e%ore the goods

trans%erred into the shi.

". Post2s1ipment Insurance9 ! :he insurance aid a%ter the goods



loaded into the shi and *e%ore reaching the iorter.

Documents reFuired

:he docuents re5uired %or the eorts are as %ollo-s9

1. <ontract

2. Inoice cu acing list

3. <oercial inoice

". Geight list

. #acing list

@. Sight dra%t

C. #h+tosanitar+ certi%icate

. <erti%icate o% authenticit+

=. Shiing *ill

10. Bill o% lading

*r@anisations related to t1e Indian toacco IndustrC

As :he :o*acco Board, :he <entral :o*acco 7esearch Institute, and:he Indian :o*acco Association are la+ing a'or roles in rotecting theinterests o% :he :o*acco trade, a *rie% anal+sis on the a*oe threeorganiations is gien here.

(oacco Board

<onsidering the ro-ing sie o% the :o*acco <ro, oernent o% India



esta*lished the :o*acco Board to cater to the interests o% the :o*acco:rade. A *rie% note on the :o*acco, and %oration o% :o*acco Board isgien *elo- coering the actiities o% the :o*acco Board also.

:o*acco Board -as %ored in the +ear 1=C@, under Ministr+ o%<oerce, ot. o% India, -ith ead 5uarter untur. :o*acco auctionss+ste -as introduced in 1=", -ith an o*'ectie o% cro regulation %orHirginia :o*acco and one+ guarantee to registered gro-ers. :o*accoBoard collects Serice <harge R 1 %ro gro-er and 1 %ro trader.

B*ARD *B$E(IE' */ (*BA*

4or 4arer concern

<ro regulation *ased on re5uireent, *+ allotting 5uantit+ toregistered gro-ers.

Sul+ing re5uired %ertilier to registered gro-ers on loan *asis.

4acilitating loan arrangeent through *ans.

7ight rice %or right 5ualit+ to gro-ers.

For Trader concern

:rader ust register -ith to*acco *oard to articiate in auctions.

:rader ust #roduce Ban guarantee.

(oacco

:o*acco is an iortant coercial cro gro-n in India. It occuies thethird osition in the -orld -ith an annual roduction o% a*out C2Million 6gs. ;% the di%%erent t+e>s gro-n, %lue!cured to*acco, countr+to*acco, *urle+, *idi, rustica and che-ing to*acco are considerediortant. India, as an eorter o% to*acco, rans sith in the -orld net

to Brail, <hina, SA, Mala-i and Ital+.

:o*acco and to*acco roducts earn a -hoing annual su o% a*out7s.102C1 crores to the national eche5uer *+ -a+ o% ecise reenue, and7s.2022 <rores (200@!0C) *+ -a+ o% %oreign echange. 4urtherore,to*acco is a source o% gain%ul elo+ent. Seeral lahs o% eolethrie on this -eed cro.

4lue!cured gro-th, -ith an annual roduction o% a*out 300 illion 6gs,is the singular t+e, -hich contri*utes huge aount o% %ore and ecise

earnings. More or less, 0 o% the 4<H to*acco roduced is consueddoesticall+ -hile the rest is eorted to ore than 100 countries across



the glo*e. ;ther to*acco t+e>s i., Burle+, <ountr+ to*acco, <he-ingto*accos (al choadia, 8udi and 7ustica) are also eorted -hereas *idito*acco ! a oor anKs soe ! is consued onl+ -ithin the countr+.

4lue!cured Hirginia to*acco is the rincial t+e gro-n in the states o%

Andhra #radesh and 6arnataa under aried agro!cliatic conditions. Itis gro-n in the light soils o% 6arnataa as rain!%ed cro and in the hea+soils o% Andhra #radesh under consered oisture in the a%terath o%South-est onsoon rains. :he cro is gro-n under irrigated conditionsin the &orthern ight Soils (&S) o% Andhra #radesh and Eastern ightSoils (ES) o% ;rissa and as a sei!onsoon cro in Southern ightSoils (SS) o% Andhra #radesh. :hus, India is endo-ed -ith a ast

otential to roduce di%%erent t+es o% to*acco so as to cater to theinterests o% the discerning custoers.

/ormation of (oacco Board

:he ot. o% India esta*lished the :o*acco Board under an Act o%#arliaent in the +ear 1=C (*rought to e%%ect %ro 1.1.1=C@) and oenedits head5uarters at untur, Andhra #radesh -ith a ie- to *ring a*out anall!round deeloent to the to*acco industr+.

I'* :<<03<<9 ertification to Indian toacco Board

:he Indian to*acco Board, in %urtherance o% its o*'ecties strie to

roide suerior serice to its custoers nael+, gro-ers and traders ina s+steatic anner. M/s. $et &orse Heritas ($&H), &etherlands

*esto-ed the honour o% IS; =0019200 certi%icate to the Indian :o*accoBoard %or esta*lishing 5ualit+ anageent s+stes.

:he :o*acco Board has ileented s+stes aied at achieing roduct integrit+ and tracea*ilit+, odel ro'ect area and 5ualit+ circlesconcet to iroe the 5ualit+ o% to*acco lea% so as to eet theseci%ications o% iorters. :he Board, coitted to eeting the needso% custoers, adises all the Indian eorters to o*tain IS; certi%ication-ith a ie- to eet the eectations o% the glo*al aret.

(oacco Board MI''I*N

:o strie %or the oerall deeloent o% to*acco gro-ers and the Indian:o*acco Industr+.

(oacco Board I'I*N

:o*acco Board is coitted to accolishing its role ! the eressed

-ill o% arliaent ! %or the sooth %unctioning o% a i*rant %arings+ste, %air and reuneratie rices to to*acco gro-ers and eort



rootion.

(oacco Board A(II(IE'

7ecogniing the need to regulate roduction, roote oerseas

areting and control recurring instances o% i*alances in sul+ anddeand, -hich lead to aret ro*les, the oernent o% India underthe :o*acco Board Act o% 1=C, esta*lished the :o*acco Board, in laceo% the :o*acco Eort #rootion <ouncil. :he Board cae intoeistence %ro 1!1!1=C@ and oened its head 5uarters at untur inAndhra #radesh, India.

:he :o*acco Board Act ais at lanned deeloent o% :o*accoIndustr+ in the countr+. :he arious actiities o% the Board outlined inthe Act %or the rootion o% the industr+ are!

• 7egulating the roduction and curing o% Hirginia :o*acco -ithregard to the deand in India and a*road.

• <onstant onitoring o% the Hirginia to*acco aret, *oth in India

and a*road and ensuring %air and reuneratie rice to thegro-ers and reducing -ide %luctuations in the rices o% thecoodit+.

• Sustaining and iroing the eisting international arets and

deeloing ne- arets oerseas %or Indian Hirginia :o*acco and

its roducts and deising areting strategies in consonance -ithdeand %or the coodit+ including grou areting underliited *rand naes.

• Esta*lishing auction lat%ors %or sale o% Hirginia to*acco *+

registered gro-ers and %unctioning as an auctioneer at auction lat%ors either esta*lished *+ it or registered -ith it.

• 7ecoending to the <entral oernent the iniu rices to

*e %ied %or eorta*le Hirginia to*acco -ith a ie- to aoidingunhealth+ coetition aongst the eorters. (nder its Ei

olic+, the oernent decided to a*olish %iation o% M.E.#. -ithe%%ect %ro 1!"!1==3).

• 7egulating other asects o% Hirginia to*acco areting in India

and eort o% Hirginia to*acco haing due regard to the interestso% gro-ers, anu%acturers, dealers and the nation.

• #roagating in%oration use%ul to the gro-ers, dealers and

eorters (including acers) o% Hirginia to*acco andanu%acturers o% to*acco roducts and others concerned.

• #urchasing Hirginia to*acco %ro gro-ers -hen the sae is



considered necessar+ or eedient %or rotecting the interests o%the gro-ers and disosing it in India or a*road as and -henconsidered aroriate.

• #rooting to*acco grading at the leel o% gro-ers.

• Sonsoring, assisting, co!coordinating or encouraging scienti%ic,

technological and econoic research %or rootion o% to*accoindustr+.

Serices ;%%ered *+ :o*acco Board %or the :rade

Introduction

:o*acco Board, haing a -ide net-or o% 5uali%ied and trained technicalsta%%, la+s a crucial role in iroing +ield and 5ualit+ o% 4<H to*acco.

:he Board ileents arious etension and deeloental schees %oriroing +ield and 5ualit+ o% to*acco in colla*oration -ith <entral:o*acco 7esearch Institute (<:7I), 7a'ahundr+ and 7esearch $eeloental -ings o% to*acco coanies in riate sector.

:he Board ileents the %ollo-ing Etension $eeloentalActiities %or iroing the +ield 5ualit+ o% the to*acco, econo+ in%uel consution, echaniation in to*acco %aring, trans%er o%technolog+, #roduct Integrit+/#ost arest #roduct Manageent etc., tohel roote eorts.

/arm Mec1anisation &o- a da+s, to*acco %arers are increasingl+ %inding la*our shortages inan+ areas. :here%ore, the Board, -ith a ie- to hel %arers echanisecertain oerations is organising sul+ o%9

• Iroed %ar ileents/achines lie Bulloc $ra-n 7idger,

o-er -eeder!cu!intercultiator!cu!ridger, translantingachines, etc.

• Micro!irrigation e5uient %or irrigating to*acco seed*eds and

dri irrigation e5uient %or irrigating ain %ields -ith the hel o%ot. o% Andhra #radesh.

• #H< ies %or dra-ing -ater %ro long distances %or irrigating

to*acco cros in #raasa &ellore$istricts o% Andhra #radesh.

• i!tech Sra+ers %or roer sra+ o% esticides in seed*eds and

ain %ield.

• #oularising lea% stitching achines aong gro-ers.

• <uroeters / Electronic deices in the *arn %or roer curing o%



to*acco.

• Geighing scales %or roer acing *aling o% to*acco.

Yield Lualit+ Iroeent

'eeds & 'eedlin@s• Seed ! :o*acco Board organises sul+ o% 5ualit+ seed eer+ +ear

to the gro-ers in the states o% Andhra #radesh and 6arnataa at its30 Auction #lat%ors through rocuring the sae %ro <:7I andM/s. I:< td.

• :ra+ Seedlings T :he Board encourages gro-ers to go %or raising

o% 5ualit+ health+ seedlings in tra+s.

• :he Board organises sul+ o% tra+s coco!eat edia to the

to*acco gro-ers in 6arnataa and Andhra #radesh at coetitie rices and against inut loans at @ to @. rate o% interest.

• :he Board rootes reen houses/#ol+ houses %or tra+ nurseries

sul+ing shade nets and ol+thene sheets at coetitie rices.

• Schees are on the anil to raise 5ualit+ seedlings and sul+ to

S</S:, Sall arginal gro-ers.

-ater !arestin@ 'tructures

•

:he rain%all in the Southern ight Soil areas located in the#raasa and &ellore districts in the state o% Andhra #radesh iserratic and the cro in this area o%ten -itnesses rolonged dr+

eriods a%%ecting the 5ualit+ +ields.

• :here%ore, the Board had e*ared u on creating soe -ater

haresting structures to hel gro-ers gie one li%e saingirrigation to sustain the cro.

• :he Board is taing u construction o% Mini <hec das oer the

riulets and digging o% %ar ondseeting to 100 cost o% the -ater haresting structures.

• :he Board is ileenting the ro'ect o% roiding %ar onds in

association -ith M/s. I:< td.

Inte@rated Pest Mana@ement

• :he Board ileents I#M rograe in eer+ +ear in select

areas in all the Auction #lat%ors in A.#.

• Sulies o% heroone tras, lures, &#H solution, etc at

coetitie rices to gro-ers.



• Monitors est oulation and adises gro-ers tae u

cultural/echanical and *io!control easures %ollo-ed *+cheical control easures.

• Sulies tra cro seeds/seedlings %ree o% cost to the gro-ers.

• ;rganises sulies o% organic esticides at coetitie rice.

• Monitors esticide residues in to*acco %ro di%%erent gro-ing

ones and taes correctie stes.

Sul+ o% Inuts

:he Board organises sul+ o% arious inuts to gro-ers i.

Karnataka

4ertilisers #esticides 4&I<I$ES ;rganic#esticides

;thers

$A#,<A&, S;#

Starthene,<on%idor,Actara

7idoill &iaar,Gellgrosoil/Gellgrocro

:ra+s, <oco!#eat, Sra+ers,:araulins,<uroeters,Sucericides,#h+ton!:

And1ra Prades1

/ertilisers ;rganic Bio!#esticides

;thers

$A#, <A&, S;#,SS#, 2092090913,Aoniu Sulhate

&iaar, Gellgrosoil/Gellgro cro,

&#H Solution

:ra+s, <oco!#eat,Sra+ers, :araulins,<uroeters,Sucericides, #h+ton!:,Geighing Scales

urin@ of (oacco

Ener@C onseration Measures

:he cost o% curing o% to*acco accounts %or a*out 1/3 o% the total cost o%cultiation. :here%ore, the Board ileents the %ollo-ing schees toachiee energ+ conseration in curing o% to*acco and thus reduce curing

costs.



• 4iing o% Henturi %urnaces in the *arns relacing traditional

%urnaces.

• Barn 7oo% Insulation.

•Modi%ied 4lue Boes T relacing 0 o% the eisting c+lindrical

ies in the *arn.

• #rooting esta*lishent o% *ri5uetting units %or anu%acture o%

*ri5uettes %ro agri -aste.

• #rooting raising o% o-n %uel *+ gro-ers.

• :raining rograes to gro-ers on curing o% to*acco and

aointing aster curers to adise gro-ers on curing techni5ues.

• E%%orts are under-a+ to deelo suita*le solar *arn %or curing o%

to*acco.

Post !arest Product Mana@ement ;P!PM= G Product Inte@ritC

Bulkin@ ;PR*E''IN#= #radin@ & storin@ of (oacco

:he cured to*acco unloaded %ro the *arns re5uires to *e *uled roerl+ to %acilitate %erentation rocess and iroe in 5ualit+ *e%oreit is graded and aced in *ales.

• :he Board conducts training rograes on roer *uling o%

cured to*acco.• Sulies taraulins to gro-ers %or coering the *uls and aoiding

aditure o% &on!:o*acco 7elated Materials (&:7Ms) during *uling and grading o% to*acco.

• Assist gro-ers construct *uling sheds/odel storage %acilities

under loan tie!u arrangeent -ith *ans.

• $istri*utes lea%lets ahlets on #roduct Integrit+, #roer

curing grading and on eliination o% &:7Ms. It also screens

%ils through ca*le net-or during eetings in the illages.(ransfer of (ec1nolo@ies

• :raining rograes are organied R 3 rograes in each o%

the 30 Auction #lat%ors in A.# 6arnataa %or the *ene%it o%%arers and %ield sta%% in colla*oration -ith <:7I and 7esearchGing o% I:< T I:$ at di%%erent stages o% cro gro-th to iartlatest no-ledge on cro roduction.

• Stud+ tours o% %arers to research stations and Board>s Model

#ro'ect Area, ;n 4ar :rial #lots, 6rushi Hignana 6endra, reenlea% threshing lants, Auction #lat%ors, to ena*le the to get



ac5uainted -ith the latest iroed ractices and adot the saein their o-n %ields.

• $istri*ution o% literature on latest roduction technolog+.

•

7esult oriented deonstrations to deonstrate arious latestethods o% cro roduction and arietal trials to test the

er%orance o% ieline arieties under %ield conditions areconducted *+ Board in colla*oration -ith <:7I, eer+ +ear.

• Audio!isual u*licit+ in illages on ood Agricultural #ractices

during gro-ers> eetings.

• Screening o% short!%ils on ood Agricultural #ractices and latest

iroed technolog+ through ca*le net-or.

•Gorshos at <:7I 7esearch Stations -ith gro-ers.

• Eclusie training rograes to gro-ers at <:7I 7esearch

Stations.

• ;rganiing %ield isits o% scientists %ro <:7I and eecuties

%ro trade to adice gro-ers on the latest acage o% ractices andcro rotection easures.

• Model #ro'ect Area schee in &S SS o% Andhra #radesh

6S o% 6arnataa.

Intensie Etension through deonstrating all ood Agricultural#ractices, latest technolog+, iroed cro rotection easuresincluding I#M, ##M I&M in association -ith <:7I and trade.4re5uent contacts -ith all the %arers in select areas.

A>ards to #ro>ers

:o*acco Board honours the *est gro-ers %or achieing higher +ields

eer+ +ear as a ste to-ards inculcating a sirit o% coetition aongthe gro-ers.



Eer+ +ear the Board %elicitates the Best ro-er A-ardees on the4oration $a+ o% the Board cele*rated in the 1st -ee o% 8anuar+ -ith acash incentie o% 7s. ,000, a Siler Medal and a <erti%icate o% Merit.

:he %ollo-ing are the a-ards resented to the gro-ers.

'. No. ate@orC No. of A>ards

1.;ne Best ro-er A-ard %or each A#4 in A.#.and 6arnataa

30

2.;ne Best ro-er A-ard each %ro ;rissaand Maharashtra states

02

3.All India *asis ! 1st, 2nd and 3rd *est gro-era-ards

03

".;ne Best ro-er A-ard %or Innoatiearoach

01

(otal A>ards 47

entral (oacco Researc1 Institute ;(RI=

7esearch on to*acco has *een la+ing an iortant role in the

deeloent o% to*acco arieties in India. India gro-s di%%erent inds o%

to*acco under di%%erent agro cliatic <onditions. as such the ro*le o%

iroeent o% di%%erent arieties o% to*accos in India are inial and

colicated. :he ain research -or on to*acco is *eing done at<E&:7A :;BA<<; 7ESEA7< I&S:I::E at 7A8AM&$7Y

and its research stations sread throughout India. A art %ro conducting

research %or deeloent o% di%%erent arieties o% to*acco %or the

aiiation o% roduction, the <:7I 7a'ahundr+ has *een resentl+

doing research on deeloent o% alternatie cros to to*acco.



India is one aongst to ten countries cultiating to*acco since decades.It is the second largest roducer in the -orld and earning %oreignechange to the tune o% 7s 1000 crores and 7s 000 crores as ecisereenue eer+ +ear. uan deendenc+ on this cro *+ -a+ o%

elo+ent is su*stantiall+ high. A*out 20 lah eole are engaged inthe roduction.

<igarette anu%acturing industr+ engages 10 lah eole, *idi industr+alone roides elo+ent to a*out @0 lah rural %ol ostl+ -oenand tri*als. Besides these, the other sectors engaged in to*acco roductslie che-ing, cigar, cheroot and snu%% along -ith acing, rocessingand eorting engage seeral thousands o% eole. :he transortagencies such as 7ail-a+s, 7oad-a+s and Sea *orne tra%%ic *ene%itiensel+ %ro to*acco trade.

B+ irtue o% the doinant role la+ed *+ this coercial cro, theIndian <entral :o*acco <oittee (I<:<) esta*lished <entral :o*acco7esearch Institute ( (RI ) in 7a'ahundr+ (Andhra #radesh) in 1="C.:he Institute -as under the adinistratie control o% Indian <entral:o*acco <oittee, Madras %ro 1="C to 1=@ and su*se5uentl+trans%erred to the Indian <ouncil o% Agricultural 7esearch (I<A7), &e-$elhi.



I<A7 acts as a reositor+ o% in%oration and roides consultanc+ onagriculture, horticulture, resource anageent, anial sciences,agricultural engineering, %isheries, agricultural etension, agriculturaleducation, hoe science and agricultural counication. U a *rie% note

on I<A7 is enclosed at end o% this section %or read+ re%erecneV. It has theandates to co!ordinate agricultural research and deeloent

rograes and deelo linages at national and international leel -ithrelated organisations to enhance the 5ualit+ o% li%e o% the %aringcounit+.

I<A7 has esta*lished arious research centres in order to eet theagricultural research and education needs o% the countr+.It is actiel+

ursuing huan resource deeloent in the %ield o% agricultural

sciences *+ setting u nuerous agricultural uniersities sanning theentire countr+.:he :echnolog+ Interention #rograes also %or anintegral art o% I<A7Ks agenda -hich esta*lishes 6rishi Hig+an 6endras(6H6s) resonsi*le %or training, research and deonstration o%iroed technologies. As a art o% its actiit+ I<A7 has taen oer the<:7I %ro I<:< during 1=@ %or conducting %undaental and aliedresearch on :o*acco %or the *ene%it o% the %aring counit+.

:he institute is haing regional net-or -ith su* stations at untur,6anduur, 8eeluguilli, 8eddangi (Andhra #radesh), Hedasandur(:ail

&adu), unsur (6arnataa), #usa (Bihar) and $inhata (Gest Bengal).Iroing the Yield and Lualit+ o% arious t+es o% to*acco i., 4<H,

&atu, <he-ing, ana, Burle+, $B7, ooah, <igar -raer, <igar%iller, etc is the rie andate o% this institute and regional researchstations %ocusing ulti!arious ro*les o% di%%erent t+es o% to*accocultiation.

:he All India <oordinated 7esearch #ro'ect on :o*acco -as sanctioned *+ the I<A7 in Aril, 1=C0 -ith %our ain centers nael+ 7a'ahundr+and #usa ( (RI ), Shioga and Anand, and %ie su* centers nael+untur, unsur and $inhata (<:7I), &iani and &and+al to intensi%+ theresearch on a'or ro*les o% to*acco haing regional and inter!regional signi%icance. :-o ne- centers at Berhaur and Saraiiran-ere sanctioned during Cth lan and the+ started %unctioning %ro 1=C W= and 1=!= resectiel+. 7ecentl+ during 2001, the Saraiirancentre -as shi%ted to ursaha+gan' in #. :he AI<7# on to*acco -aserged -ith <entral :o*acco 7esearch Institute in August, 1==.

:his is one o% the ioneering organisations in the -orld dedicated to the

to*acco research %or the *ene%it o% the to*acco %arers. :he ne- (RI *uilding cole -as constructed -ith necessar+ in%rastructural



%acilities during 1=2 in a land o% 1 acres gien *+ the oernent o%

Andhra #radesh. :he Institute ead5uarters is located in the historical

cit+ o% 7a'ahundr+ (1@.= &, 1."C E and 2 a*oe MS) on the

*ans o% erennial rier odaari in East godaari $istrict o% Andhra

#radesh. :he 7a'ahundr+ cit+ is situated on <alcutta!<hennai 7ail

7oute and &ational igh-a+ &o. :he near*+ Airorts are located at

Hisahaatna (1=0 ) and annaara (Hi'a+a-ada 1"0 )

:oda+, the Institute is the *iggest o% its ind in Asia, -ell e5uied -ith

the ost sohisticated instruents %or carr+ing out *asic and alied

research, eseciall+ in the %rontier areas lie Bio!technolog+ and soe

research at 7a'ahundr+ (E..$ist. o% A.#.). It is recognised *+ seeral

uniersities lie Andhra niersit+, Achar+a &.. 7anga Agricultural

niersit+, Bhagalur niersit+, &agar'una niersit+, Mahata #hule

6rishi Hid+aeeth, 7ahuri %or the a-ard o% #h.$. degree through

7esearch. At resent a*out 30 elo+ees including " Scientists, 1C=

technical sta%% and 300 adinistratie and other sta%% are -oring in this

institute %or the deeloent o% to*acco in the countr+. $ue to the

eerlasting research done in the Institute %or 0 +ears, seeral to*acco

%arers are *ene%ited *+ %ollo-ing the acage o% ractices and

roduction technolog+ deeloed *+ the scientists o% this institute.

Indian ouncil of A@ricultural Researc1 ;IAR=

• :he Indian <ouncil o% Agricultural 7esearch (I<A7) is an

autonoous organisation under the $eartent o% Agricultural 7esearchand Education ($A7E), Ministr+ o% Agriculture, oernent o% India.4orerl+ no-n as Ierial <ouncil o% Agricultural 7esearch, it -asestalis1ed on 07 $ulC 0:3: as a registered societ+ under the Societies

7egistration Act, 1@0 in ursuance o% the reort o% the 7o+al<oission on Agriculture. :he I<A7 has its head5uarters at &e-$elhi.

• :he <ouncil is the ae *od+ %or co!ordinating, guiding and

anaging research and education in agriculture including horticulture,%isheries and anial sciences in the entire countr+. Gith :8 IAR

institutes and 56 a@ricultural uniersities sread across the countr+this is one o% the largest national agricultural s+stes in the -orld.

•

:he I<A7 has la+ed a ioneering role in ushering reen7eolution and su*se5uent deeloents in agriculture in India through



its research and technolog+ deeloent that has enaled t1e countrC

to increase t1e production of food @rains C 5 times, 1orticultural

crops C 7 times, fis1 C : times ;marine 6 times and inland 08

times=, milk 7 times and e@@s 38 times since 1=0!1, thus aing a

isi*le iact on the national %ood and nutritional securit+. It has la+eda a'or role in rooting ecellence in higher education in agriculture.It is engaged in cutting edge areas o% science and technolog+deeloent and its scientists are internationall+ acno-ledged in their%ields.

Indian (oacco Association #untur ;I(A=

:he Indian :o*acco Association is an Ae Bod+ 7eresenting :o*acco

Eorters, $ealers and Manu%actures. It has *een esta*lished in the +ear

1=@!3C. It has a Me*ershi o% a*out 1C e*ers. It reresents alost

100 o% the doestic <igarette Manu%actures and 4<H Eorters. It is

the 7eresentatie Bod+ o% the <igarette :o*acco Industr+ on all olic+

issues

Address9 :he Indian :o*acco Association

=th ine, Sriniasarao :hota, .: road

untur!2200" A&$7A #7A$ES

#hone!=1!@3!221@23 4a!=1!@3!232@=

Indian (oacco Association 2 *jecties

:he Indian :o*acco Association has the %ollo-ing o*'ecties9

• :o di%%use no-ledge a*out the use%ulness o% rades and

Standards aong the ro-ers Merchants and Manu%actures inIndia.

• :he Association shall tae stes to hae a s+ste o% Maret

intelligence sercie regarding rices, stocs sulies, etc.

• :he association a+ o-n reises or -arehouses %or its urose



*ut shall not *e a trading Association.

• :he Association does all such things as a+ *e conducie to the

deeloent o% to*acco industr+ or incidental to attainent o% thea*oe o*'ects.

• :he association can liaison -ith :o*acco Board o% India,

oernents/ $eartent concerned, 4oreign:rade/Associations/iorters and an+ other Bodies/indiiduals,-ith -ho contacts a+ roote the interests o% :o*accoindustr+.

• :he Association can grant $onations either in cash or in ind and

to assist in the aintenance and iroeent o% Educationalinstitutions, Medical Institutions and ;ther <harita*le Association

%or the #rootion o% iterature, Arts Science, enironent and %orthe Gel%are o% the Societ+ as a -hole -ithout distinction o% <aste7eligion, creed, 7ace or Se.

:he Association does such other Acts and things that are necessar+ %orthe %urtherance o% the o*'ects o% the Association.

Indian toacco association 2 Actiities

:he Indian :o*acco Association has *een actiel+ inoled in the

deeloent o% the Indian :o*acco Industr+ oer the ast seen decades.

7ecentl+, in 8anuar+, 2003 it has associated itsel% -ith the Indian Societ+

o% :o*acco Science in organiing the &ational S+osiu on :o*acco

-ith the thee 4orcing 4uture <hallenges at I:A Auditoriu, -hich

has *een attended *+ the einent :o*acco Scientists and other delegates

%ro all oer India and the Gorld



Chapter-7

Export



documentation

Export Documentation

An eort trade transaction distinguishes itsel% %ro a doestic

:rade transaction in ore than one!-a+. ;ne o% the signi%icant ariations *et-een the t-o arises on account o% the uch heaier docuentation-or -hich is characteristic o% an eort transaction. Soe o% thedocuents are a ust in eort *usiness, arising as the+ do on account o%

custo o% tradeN and conentions goerning international coercial ractices. Besides, 5uite %e- o% these o-e their eistence to certainstatutesF rules and regulations goerning eort trade, -hich inter alias,include eort trade control, %oreign echange regulations, re shientinsection, central ecise and custos.

:he docuentation and rocedures are rendered cole on account o%the ineita*le inoleent o% a nu*er o% interediar+ agencies andgoernent authorities such as %reight %or-arders, carriers, insurancecoanies, *ans, eort rootion councils, Insection agencies, 7.B.I

etc. In order to sili%+ the docuentation rocedure, a ne- Aligned$ocuentation has *een deeloed.



A))I#NED D*%MEN(A(I*N '"'(EM ;AD')

Based on & la+out e+ and the eerience gained in an+ otherdeeloed countries, the goernent o% India has decided to introducethe A$S -ith e%%ect %ro 1st ;cto*er!1==1. :his s+ste inoles the

rearation o% docuents on a uni%or and standard A" sie o% aer.

:he docuents are aligned to one another in such a -a+ that thecoon ites o% in%oration are gien the sae relatie slots in each o%the docuents included in the s+ste. :his aes it ossi*le to reareone Master $ocuentN e*od+ing the in%oration coon to all thedocuents included in the aligned series and to run o%% all the aligneddocuents %ro the sae Master $ocuent -ith the hel o% suita*le

asing and reroduction techni5ues. :he use o% ass is intended to *lan out such in%oration as is not re5uired in a articular docuent.

'tandardiHed and ali@ned pre2s1ipment export documents

;n an aerage, a*out 2" coercial and regulator+ docuents areassociated -ith an eort transaction in India. :he+ include 1 iortantcoercial docuents and are discussed as under9

a. #er%ora Inoice

*. <oercial Inoicec. #acing listd. Shiing instructionse. <erti%ication o% Insection/Lualit+ <ontrol%. Insurance declarationg. <erti%icate o% insuranceh. Shiing order i. Mate receit

'. B// <o*ined :ransort $ocuent. Alication %or certi%icate o% originl. <erti%icate o% origin. Bill o% echangen. Shient adiseo. etter to the *an %or collection/negotiation.

:he coercial docuents are those -hich, *+ custo or trade arere5uired %or e%%ecting h+sical trans%er o% goods and their title> %ro theeorter to the iorter and the realiation o% eort sale roceeds.

Re@ulatorC Documents

7egulator+ #re!shient eort docuents are those, -hich hae *een



rescri*ed *+ di%%erent agencies in coliance o% the re5uireents o%arious rules, and regulations under releant la-s goerning eort tradesuch as eort insection, %ore, custos etcQ. ;n an aerage there are= regulator+ docuents.

1. ate ass!1/gate ass!2 prescribed by9 ! <entral ecise $et.

2. A7"!A/A7!" %or !do!

3. Shiing *ill / %or eort <ustos det.

4or eort o% goods e *ond !do!

4or eort o% dut+ %ree goods !do!

4or eort o% dutia*le goods !do!

4or eort o% goods under clai %or !do!

$ut+ dra-*ac

". Eort alication/$oc <hallan #ort trust

#ort trust co+ o% shiing *ill

. 7eceit %or a+ent o% #ort charges !do!

@. Hehicle ticet !do!

C. 7/##/S$4 %ors 7.B.I

. 4reight a+ent certi%icate

=. Insurance reiu a+ent <erti%icate.

D*%MEN( *NNE(ED -I(! (RAN'P*R(A(I*N */

#**D'.

0. Air -aC Bill ;A-B= Air consi@nment Note.

:he receit issued *+ an airline or its agent %or the carriage o% goods iscalled air-a+ *ill or air consignent note. It is issued in ters andconditions o% the contract o% carriage o% goods. It is not a docuent o%title and it is not issued in a negotia*le %or.

enerall+ AGB is issued in three coies, iF %or the carrier, %or theconsignee and %or the consignor.

3. Postal Parcel Receipt ;PPR=.

ie the AGB, the ##7 eidence erel+ the receit o% the goods to *eeorted to the *u+er and is not a docuent o% title.

4. Bill of )adin@ ;B)=.

A Bill o% ading is the ost iortant docuent in 4oreign :rade. It isgenerall+ issued *+ a shiing coan+. It serices as a receit %ro the

shiing coan+ -ho undertaes to delier the goods at agreed



destination on a+ent o% %reight in a rearranged anner and also adocuent o% title to the goods. B/ is generall+ ade out in the sets o%t-o or three originals. All the originals are dul+ signed *+ the aster o%shi or the agent o% the steashi coan+ and all the originals are

e5uall+ alid %or taing the delier+ o% goods and once one original co+is utilied the other originals *ecoe %ull and oid.

B/ is nor a negotia*le instruent in ters o% &egotia*le instruent Act,o-eer, it is a ractice to call the original coies as negotia*le coies.

5. omined (ransport Document ;(D=

Gith the introduction o% ultiode oeent o% goods in container onthe *asis o% single contract %ro and to interior o% the countr+,goernent has esta*lished Inland <ontainer $eot (I<$s) at selected

centre. :hese dr+ deots hae ade it ossi*le to coer the entireoeent o% goods, %ro I<$ to destination, under one transortdocuent called <:$. 7ules goerning co*ined transort docuentare designed *+ International <ha*er o% <oerce (Brochure &o.2=)considering the international ractices.

*MMERIA) D*%MEN('.

0. Performa Inoice

As the nae denotes, it is an inoice in esta*lished #er%ora, a+ent o%-hich is not intended. :hese inoices are used %or o*taining %inancial

assistance lie #acing <redit %ro a *aning institution, as #er%orainoice together -ith an o%%er, accetance on -hich -ill %or a legalcontract.

3. ommercial Inoice

It is the ost -idel+ used inoice in coercial transactions. It is thestateent o% account o% sale rendered *+ the seller to the *u+er and is

reared on seller>s letterhead or in the rescri*ed %or on A!" sie aer. It contains the nae o% the *u+er and his address, date, re%erence

nu*er, 5uantit+, ars descrition o% goods unit rice, total alue o%goods, ters o% a+ent/< B/ no. Etc.

4. onsular Inoice

A consular inoice is re5uired *+ soe countries lie <anada, SA,etcQa consul %or inoice is re5uired to *e reared in a rescri*ed%orat and it should *e signed/certi%ied *+ the consul o% the iorting

countr+ located in the countr+ o% eort. :he ain urose o% a consularinoice is to ena*le the iorter>s countr+ to collect accurate and



authenticated in%oration a*out the alue, olue, 5ualit+, source etcF o%the iort %or assessing iort duties and %or other statistics uroses.

5. ustoms Inoice

<ountries lie SA, <anada etc. need custo>s inoice. It is generall+ade out on a secial %or rescri*ed *+ the custo authorities o% theiorting countr+ and hels %or allo-ing entr+ o% goods in the iortingcountr+ at re%erential tari%% rates. :he inoice %ors are generall+aaila*le at the consular o%%ice o% the iorting countr+ and are re5uiredto *e signed and -itnessed a%ter dul+ %illing the sae.

6. )e@aliHed isaed Inoice

:hese are the inoices s-orn %or their genuineness *+ the seller as *eingcorrect *e%ore the aroriate consulate/cha*er o% coerce/e*ass+

as the case a+ *e and the+ *ear the sta and authentication o% theconsulate/chater o% coerce/e*ass+ as *eing in order. :he+ collect anoinal charge %ro the seller %or doing this.

IN'%RANE D*%MEN('

0. )etter of insurance.

:his is analogous to coer note issued *+ the *roer. It is stated that articular su*'ect are laced under insurance and certi%icate/olic+ o%insurance -ill *e issued later on.

3. BrokerJs ertificate:his is also not acceta*le as *roer issues the sae, as *roer acts %orthe insured and cannot coel insurer to accet the roosal o%insurance.

4. Insurance ertificate.

:he insurance on oen coerN or %loatingN olic+ coering allshient on certain ters and su*'ects to conditions laid do-n. nlessthe insurance certi%icate gies details o% the conditions o% coer it is not

so uch alue to third art+ -ho negotiate the shiing docuents.5. Insurance PolicC.

:his is a *asic legal docuent!eidencing contract o% insurance *et-eenthe insurer and insured. It gies %ull details o% all the riss coered.Marine or transit insurance olicies can *e assigned *+ the insurederel+ *+ endorseent and delier+. Insurance olicies are issued indi%%erent %ors lie %loating olic+, oen olic+ or coer, seci%ic olic+etcQ

A %loating olic+ is a contract o% insurance %or coering a nu*er o%shients, the details o% -hich are not %inalied -hen the contract o%



insurance is conclude. :he releant details lie nae o% the essel,destination, descrition o% cargo etc. is there%ore re5uired to *e declaredsu*se5uentl+ and endorse in the olic+.

An oen coer /olic+ is alid %or a gien eriod o% tie or eranentl+

oen. As er this olic+ the insurer undertaes to insure all the shients%or -hich the details are alread+ intiated to the insurer.

A seci%ic olic+ coers seci%ic shients and such olic+ is readil+aaila*le %or su*itting -ith the eort docuents.

:he coerage o% riss is classi%ied into categories lie A, B, < etc. andthe insurance olicies are issued accordingl+.

/INANIA) D*%MEN('

0. Draft

It is *ill o% echange. According to section o% the &egotia*leInstruents Act, 11 a *ill o% echange is an instruent in -ritingcontaining an unconditional order, signed *+ the aer, directing acertain erson to a+ a certain su o% one+ onl+ on or to the order o% a

erson to the *earer o% the instruent.N

A *ill o% echange contains an order %ro the <reditor to the de*tor to a+ a seci%ic aount to a erson entioned therein. :he ae o% the *ill is called the dra-erN the erson -ho is directed to a+ is called the

dra-eeN. :he erson -ho is entitled to receie a+ent is calleda+eeN.

In an eort transaction it is adisa*le that an eorter dra-s a dra%t,-hich a+ either at sight/on deand or usanceN. $ra%ts are ainl+ae in t-o sets -ith all other concerned docuents and ailed to the%oreign corresondent through an authoried dealer %or resentation tothe dra-ee/iorter, Ghen an+ o% the dra%ts is aid on resentation it iscalled an at sight/on deand dra%t and i% acceted -hen it is a usancedra%t *+ the dra-ee, then the second dra%t *ecoes null and oid.

3. lean Bill and DocumentarC Bill

Ghen the dra-er o% a *ill encloses -ith it a docuent o% title to goods oran+ other e5uialent docuent it is called a docuentar+ *ill. In aneort transaction the eorter deliers to the *aner, docuents lie %ullset o% B/, AGB, ##7 etcQ together -ith docuents lie dra%ts,inoices, acing list etcQ %or resentent to the dra-ee. $eendinguon the tender o% the *ill i.e. $/# or $/A, the docuents are delieredto the dra-ee against a+ent or accetance. I% no such docuents areattached -ith the *ill, then it is called as a clean *ill.

4. 'tamp DutC



All dra%ts are dra-n on the dra-ee. nlie in ost o% the %oreigncountries, the Indian sta Act does not re5uired the sight dra%ts to *estaedN. I.e no sta dut+ is alica*le to dra%ts dra-n at

sight/deand *ills. $ra%ts dra-n on usance *asis re5uire to *eade5uatel+ staed. Sta dut+ is the sae no atter -hether the *illsis dra-n or negotiated in India.

5. Acceptance of Bill

A *ill o% echange a+a*le on deand or at sight or on a %ied date doesnot need accetance and hence resentent %or accetance isunnecessar+ unless such resentation is seci%icall+ desired. A dra%t

a+a*le a%ter sight ust *e resented %or accetance since the aturit+date o% the *ill can onl+ *e deterined a%ter such accetance.Ghen the dra-ee o% a *ill signi%ied his consent to the dra-er>s order inthe *ill o% -riting his nae across the %ace o% the *ill -ith or -ithout the-ord accetedN the *ill is said to *e acceted. Accetance o% a *ill,there%ore,Means that the dra-ee gies his consent to a+ the aount entionedtherein on the due date/aturit+ date. :he %oreign corresondent *anusuall+ adises the due date to the eorter through his *aner in India.

6. Notin@Protestin@ of /orei@n Bills

At the tie the *ills are %or-arded to the eorter>s *an, it is adisa*leto roide the *an -ith clear instructions/stes to *e taen in case the

*ills are dishonored on resentation or aturit+ as the case a+ *e. :hedra-er/holder %or alue a+ cause the dishonor to *e noted *+ a &otar+#u*lic on the instruent or uon a aer attached thereto or artl+ uoneach. :he notar+ %orall+ aes a deand o% accetance or a+entuon the accetor or dra-ee and on his re%usal to do so notes the sae

on the *ill. :hus &otingN eans the %act that the *ill has *eendishonored is recorded on it and uts the dra-er/holder %or alue on ahigher edestal in the e+es o% la-. :his is done -ithin a reasona*le tiea%ter dishonor. suall+ the notar+ aes the %ollo-ing o*serations9 !

a) :he date o% dishonour. *) :he reason, i% an+ assigned %or such dishonor.c) :he &otar+Ks charges.

:he %oreign *ills ust, therea%ter #rotested %or dishonor, %or it is to *e laced as docuentar+ eidence in the court o% la-. In other -ords the



o*serations ade thereon *+ the notar+ -ill *e taen at %ace alue. A rotest is a certi%icate issued *+ the &otar+ #u*lic attesting that the *illhas *een dishonored and -ill usuall+ contain9 !

a) :he nae o% the erson %or -ho and against -ho the instruenthas *een rotested.

*) A stateent that the &otar+ #u*lic and the reason %or dishonordeanded accetance or a+ent %ro the accetor or dra-ee.c) :he lace and tie o% dishonor o% the *illd) :he signature o% the &otar+ #u*lic.

(!IRD PAR(" D*%MEN('

0. ertificate of *ri@in.

enerall+ the iorter to %urnish to hi a certi%icate stating that thegoods are o% his countr+>s origin -ill call uon an eorter. Indeendent

*odies lie, the <ha*er o% <oerce, andicra%ts Board, Eortinsection <ouncil etc, -ill gie this certi%icateQ Gho Issue theagainst a+ent or noinal %ees a%ter *eing satis%ied o% the origin o%goods. :here a+ *e a re%erential tari%% in %aour o% goods %ro

articular countries and there%ore, it has to *e ensured that the eorter-ho has *rought the into his o-n countr+ %ro soe other lace o%origin has not reshied the goodsF -hich is not eligi*le %or the

re%erence.

3. Black )ist ertificate.

:his is to certi%+ that the shi/aircra%t carr+ing the goods has not toucheda articular countr+ on its 'ourne+ or that the goods are not o% a articular

countr+. :his certi%icate is usuall+ called -here countries hae strained olitical relations -ith another.

4. Packin@ )ist.

:his docuent sho-ing details o% goods contained in each arcel/shient. It sho-s ite!*+!ite the contents o% the containers or arcels shied to ena*le the *u+er / receier o% the shient to checthe shient.

5. ManufacturerJs'upplierJs FualitCInspection ertificate.



:his is a certi%icate to the e%%ect that the goods, -hich hae *eenanu%actured / sulied, are as er the re5uireent o% the contract o%sale.

6. ertificate of Inspection.

Insection certi%icate, indicating that goods hae *een insected *e%oresoe countries need under soe contracts or shient. :his certi%icate isgenerall+ re5uired to *e issued *+ one o% the authoried indeendentInsection Agencies lie Eort Insection Agenc+, :etile <oittee,and <entral Sil Board etc.

7. ertificate of AnalCsis.

<erti%icate regarding the cheical anal+sis o% the goods issued *+ acoetent o%%ice. <erti%icate o% shiing agent that a certain lot o% goodshae *een shied.

8. !ealt1eterinarC'anitarC ertificate.

Ghen the goods iorted are %oodstu%%s, arine roducts, liestoc etc.a certi%icate %ro the health/eterinar+/sanitar+/authorities is called %or.:his is *ecause the iorter desires to no- i% the goods are %it %orhuan consution.

D*%MEN(' RE?%IRED B" E!AN#E *N(R*)

0. #R E!AN#E *N(R*) *P" 'D/ /*RM.

:his is one o% the ost iortant docuents re5uired *+ 7esere *ano% India %or Echange <ontrol #urose. But no- 7/S$4 %ors has

*een -aied o%% incase the total alue o% shient is less S?!2000.

:he 7 %or contains the *rie% details o% shient sae as entioned inthe shiing *ill. :his coes under the 4oreign Echange ManageentAct. But S$4 is a sel%!declaration ade *+ the eorter the reatriationo% the aount -ithin the stiulated tie, under the Indian <ustos E$Is+stes %or Eorts (I<ES/E).

3. P.P /*RM

:his is also one o% the ost iortant docuents %or echange control,

rescri*ed *+ 7BI, i% the eort arcel/shient is routed throughAuthoried 4oreign #ost o%%ice, as a ostal arcel. But no- ## %ors has



*een -aied o%% in case the total alue o% shient is less S?!2000.

IN*(ERM'

anguage is one o% the ost cole and iortant tools o%

International :rade. As in an+ cole and sohisticated *usiness, sall

changes in -ording can hae a a'or iact on all asects o% a *usiness

agreeent.

Gord de%initions o%ten di%%er %ro industr+ to industr+. :his is eseciall+

true o% glo*al trade. Ghere such %undaental hrases as delier+ canhae a %ar di%%erent eaning in the *usiness than in the rest o% the -orld.

4or *usiness terinolog+ to *e e%%ectie, hrases ust ean the sae

thing throughout the industr+. :hat is -h+ the International <ha*er o%

<oerce created I&<;:E7MS in 1=3@. I&<;:E7MS are designed

to create a *ridge *et-een di%%erent e*ers o% the industr+ *+ acting as

a uni%or language the+ can use.

Each I&<;:E7M re%ers to a t+e o% agreeent %or the urchase andshiing o% goods internationall+. :here are 13 di%%erent ters, each o%

-hich hels users deal -ith di%%erent situations inoling the oeent

o% goods. 4or eale, the ter 4<A is o%ten used -ith shients

inoling 7o/7o or container transortF $$ assists -ith situations

%ound in interodal or courier serice!*ased shients.

I&<;:E7MS also deal -ith the docuentation re5uired %or glo*al

trade, seci%+ing -hich arties are resonsi*le %or -hich docuents.

$eterining the aer-or re5uired to oe a shient is an iortant

'o*, since re5uireents ar+ so uch *et-een countries. :-o ites,

ho-eer, are standard9 the coercial inoice and the acing list.

I&<;:E7MS -ere created riaril+ %or eole inside the -orld o%

glo*al trade. ;utsiders %re5uentl+ %ind the di%%icult to understand.

Seeingl+ coon -ords such as resonsi*ilit+ and delier+ hae

di%%erent eanings in glo*al trade than the+ do in other situations.

In glo*al trade, delier+ re%ers to the seller %ul%illing the o*ligation o%



the ters o% sale or to coleting a contractual o*ligation. $elier+

can occur -hile the erchandise is on a essel on the high seas and the

arties inoled are thousands o% iles %ro the goods. In the end,

ho-eer, the ters -ind u *oiling do-n to a %e- *asic seci%ics9

<osts9 -ho is resonsi*le %or the eenses inoled in a shient at a

gien oint in the shientKs 'ourne+W

<ontrol9 -ho o-ns the goods at a gien oint in the 'ourne+W

ia*ilit+9 -ho is resonsi*le %or a+ing daage to goods at a gien oint

in a shientKs transitW

It is essential %or shiers to no- the eact status o% their shients in

ters o% o-nershi and resonsi*ilit+. It is also ital %or sellers *u+ersto arrange insurance on their goods -hile the goods are in their legal

ossession. ac o% insurance can result in -asted tie, la-suits, and

*roen relationshis.

I&<;:E7MS can thus hae a direct %inancial iact on a coan+Ks

*usiness. Ghat is iortant is not the acron+s, *ut the *usiness results.

;%ten coanies lie to *e in control o% their %reight. :hat *eing the

case, sellers o% goods ight choose to sell <I4, -hich gies the a good

gras o% shients oing out o% their countr+, and *u+ers a+ re%er to

urchase 4;B, -hich gies the a tighter hold on goods oing into

their countr+.

In this glossar+, -eKll tell +ou -hat ters such as <I4 and 4;B ean

and their iact on the trade rocess. In addition, since -e realie that

ost international *u+ers and sellers do not handle goods theseles,

*ut -or through custos *roers and %reight %or-arders, -eKll discuss

ho- *oth %it into the ters under discussion.

I&<;:E7MS are ost %re5uentl+ listed *+ categor+. :ers *eginning

-ith 4 re%er to shients -here the riar+ cost o% shiing is not aid

%or *+ the seller. :ers *eginning -ith < deal -ith shients -here the

seller a+s %or shiing. E!ters occur -hen a sellerKs resonsi*ilities are

%ul%illed -hen goods are read+ to deart %ro their %acilities. $ ters

coer shients -here the shier/sellerKs resonsi*ilit+ ends -hen the

goods arrie at soe seci%ic oint. Because shients are oing into a

countr+, $ ters usuall+ inole the serices o% a custos *roer and a



%reight %or-arder. In addition, $ ters also deal -ith the ier or docing

charges %ound at irtuall+ all orts and deterining -ho is resonsi*le

%or each charge.

7ecentl+ the I<< changed *asic asects o% the de%initions o% a nu*er o%I&<;:E7MS, *u+ers and sellers should *e a-are o% this. :ers that

hae changed hae a star alongside the.

E2-orks

;ne o% the silest and ost *asic shient arrangeents laces the

iniu resonsi*ilit+ on the seller -ith greater resonsi*ilit+ on the

*u+er. In an ED!Gors transaction, goods are *asicall+ ade aaila*le

%or icu at the shier/sellerKs %actor+ or -arehouse and delier+ isaccolished -hen the erchandise is released to the consigneeKs %reight

%or-arder. :he *u+er is resonsi*le %or aing arrangeents -ith their

%or-arder %or insurance, eort clearance and handling all other

aer-or.

/*B ;/ree *n Board=

;ne o% the ost coonl+ used!and isused!ters, 4;B eans that the

shier/seller uses his %reight %or-arder to oe the erchandise to the

ort or designated oint o% origin. :hough %re5uentl+ used to descri*e

inland oeent o% cargo, 4;B seci%icall+ re%ers to ocean or inland

-ater-a+ transortation o% goods. $elier+ is accolished -hen the

shier/seller releases the goods to the *u+erKs %or-arder. :he *u+erKs

resonsi*ilit+ %or insurance and transortation *egins at the sae

oent.

/A ;/ree arrier=

In this t+e o% transaction, the seller is resonsi*le %or arranging

transortation, *ut he is acting at the ris and the eense o% the *u+er.

Ghere in 4;B the %reight %or-arder or carrier is the choice o% the *u+er,

in 4<A the seller chooses and -ors -ith the %reight %or-arder or the

carrier. $elier+ is accolished at a redeterined ort or destination

oint and the *u+er is resonsi*le %or Insurance.



/A' ;/ree Alon@side '1ip=

In these transactions, the *u+er *ears all the transortation costs and the

ris o% loss o% goods. 4AS re5uires the shier/seller to clear goods %or

eort, -hich is a reersal %ro ast ractices. <oanies selling onthese ters -ill ordinaril+ use their %reight %or-arder to clear the goods

%or eort. $elier+ is accolished -hen the goods are turned oer to

the Bu+ers 4or-arder %or insurance and transortation.

/R ;ost and /rei@1t=

:his ter %orerl+ no-n as <&4 (<4) de%ines t-o distinct and

searate resonsi*ilities!one is dealing -ith the actual cost o%

erchandise < and the other 4 re%ers to the %reight charges to a

redeterined destination oint. It is the shier/sellerKs resonsi*ilit+ to

get goods %ro their door to the ort o% destination. $elier+ is

accolished at this tie. It is the *u+erKs resonsi*ilit+ to coer

insurance %ro the ort o% origin or ort o% shient to *u+erKs door.

ien that the shier is resonsi*le %or transortation, the shier also

chooses the %or-arder.

I/ ;ost Insurance and /rei@1t=

:his arrangeent siilar to <47, *ut instead o% the *u+er insuring the

goods %or the aritie hase o% the o+age, the shier/seller -ill insure

the erchandise. In this arrangeent, the seller usuall+ chooses the

%or-arder. $elier+ as a*oe, is accolished at the ort o%

destination.

P( ;arria@e Paid (o=

In <#: transactions the shier/seller has the sae o*ligations %ound

-ith <I4, -ith the addition that the seller has to *u+ cargo insurance,

naing the *u+er as the insured -hile the goods are in transit.

IP ;arria@e and Insurance Paid (o=

:his ter is riaril+ used %or ultiodal transort. Because it relies on

the carrierKs insurance, the shier/seller is onl+ re5uired to urchase

iniu coerage.



Ghen this articular agreeent is in %orce, 4reight 4or-arders o%ten act

in e%%ect, as carriers. :he *u+erKs insurance is e%%ectie -hen the goods

are turned oer to the 4or-arder.

DA/ ;Deliered At /rontier=

ere the sellerKs resonsi*ilit+ is to hire a %or-arder to tae goods to a

naed %rontier, -hich usuall+ a *order crossing oint, and clear the %or

eort. $elier+ occurs at this tie. :he *u+erKs resonsi*ilit+ is to

arrange -ith their %or-arder %or the ic u o% the goods a%ter the+ are

cleared %or eort, carr+ the across the *order, clear the %or

iortation and e%%ect delier+. In ost cases, the *u+erKs %or-arder

handles the tas o% acceting the goods at the *order across the %oreignsoil.

DE' ;Deliered Ex '1ip=

In this t+e o% transaction, it is the sellerKs resonsi*ilit+ to get the goods

to the ort o% destination or to engage the %or-arder to the oe cargo to

the ort o% destination uncleared. $elier+ occurs at this tie. An+

destination charges that occur a%ter the shi is doced are the *u+erKs

resonsi*ilit+.

DE? ;Deliered Ex ?uaC=

In this arrangeent, the *u+er/consignee is resonsi*le %or duties and

charges and the seller is resonsi*le %or deliering the goods to the 5ua+,

-har% or ort o% destination. In a reersal o% reious ractice, the *u+er

ust also arrange %or custos clearance.

DDP ;Deliered DutC Paid=

$$# ters tend to *e used in interodal or courier!t+e shients.

Ghere*+, the shier/seller is resonsi*le %or dealing -ith all the tass

inoled in oing goods %ro the anu%acturing lant to the

*u+er/consigneeKs door. It is the shier/sellerKs resonsi*ilit+ to insure

the goods and a*sor* all costs and riss including the a+ent o% dut+



and %ees.

DD% ;Deliered DutC %npaid=

:his arrangeent is *asicall+ the sae as -ith $$#, ecet %or the %actthat the *u+er is resonsi*le %or the dut+, %ees and taes.



Chapter-8

Suggestions

Conclusion

Suggestions

:he anageent has to loo a%ter and assign tass to its



elo+ees %ro tie to tie so that things a+ oe %aster

:he ;rganisation a+ roide training and deeloent

rogras %or the eisting elo+ees to deelo ro%essionalsills and talents

:he ;rganisation has greater scoe %or increasing its eorts

*+ eorting ore 5uantities.

Conclusion

:he ;rganisation is ho-eer success%ul in carr+ing on its *usiness

oerations. It ared iroeent in its er%orance oer the

+ears. :here is een greater scoe %or eanding its trade actiities

aing a reara*le ecellence in its %ield o% *usiness. It has *een

roed to *e success%ul in achieing its o*'ecties and %ul%illing its

%unctions e%%ectiel+.



Chapter-9

Bibliography



Bibliography

/& Information ta>en from the 1e! sites of C

To!acco Board K 111&to!acco!oard&com L

Indian To!acco ssociation K 111&smenet1or>&netL

5entral To!acco 'esearch Institute(5T'I) K 111&ctri&or6&in L

& +anual of Export Documentation !y P&Meerareddy H P&

+amathaK 5ommercial "a1 Pu!lications India Pri4ate "imited L

& Export N Policy# Procedures H Documentation !y +&I&+ajan

K 2no1 Jhite Pu!lications Pri4ate "imited L

http://www.tobaccoboard.com/

http://www.smenetwork.net/

http://www.ctri.org.in/

http://www.tobaccoboard.com/

http://www.smenetwork.net/

http://www.ctri.org.in/