Declaration

I, Miss Harpreet Kaur hereby declare that the information and data given
in this project report is authentic to the best of my knowledge. THIS SUMMER
TRAINING REPORT IS NOT BEING SUBMITTED TO ANY OTHER
UNIVERSITY FOR AWARD OF ANY OTHER DEGREE, DIPLOMA AND
FELLOWSHIP.

(HARPREET KAUR)
 Acknowledgement

It is the matter of great pleasure and privilege to be able to present this

project report on import/export procedure and documentation.

The compilation of the project is a milestone in the life of the management

student and its execution is inevitable with the co-operation of the project guide. I
wish to record a deep sense of respect and gratitude, Mr. Tejinder Sharma
(Professor in commerce department) for his encouragement to course of my work.

I am thankful to Mr. M. M. Gulati (senior officer) and Mr. V.P.Singh

(secretary) working in Liberty shoes, head office, Karnal who provided me his
expert advice, inspiration and moral support inspite of his busy schedules. It is due
to the enduring effort and guidance of my guide that ultimately made it success.

I also extend by sincere appreciation to various authors for making use of

valuable information liberally.
 Executive Summary

This project is aimed at understanding Import-Export procedure &

documentation .it begins with what Import and Export is all about and which
documents are required for Import and Export.

Methodology used for the data collection is secondary which is collected

through Invoices and Sales report of company.

All the data collected is kept in a systematic manner starting from procedure
to documents required for the carried out this activity.

Then the different terms of shipment and international commercial terms

that are discussed in detail on which business deals are done like FOB,CIF,FCA
etc. and then covering different types of risks involved in export like currency risk,
credit risk ,country risk and carriage risk is discussed.

Import Export document which are required are divided into 3 parts:-

A. Commercial documents
B. Auxiliary documents
C. Regulatory documents

Further, Octroi which is the local tax levied by the civic body on goods
entering into the city. Export (Quality control and pre-shipment inspection) act
1963 was compulsory. Quality Control and Pre-Shipment Inspection of over 1050
items of export, system of quality control: Self-certification, In-process Quality
Control, Consignment Wise Inspection. And then, Shipping and Customs
formalities (As per the prevailing Law i.e., ICA 62) the goods cannot be loaded on
board the ship unless a formal permission is obtained from the custom authorities.
There are different methods of payment depending upon the terms of payment and
each method of payment involves varying degrees of risks for the exporter.
The methods are :-

Payment in advance, Documentary bills, Letter of credit, Open

Account, Counter Trade.
INTRODUCTION
 International Trade, Its Pros and Cons

International trade is the exchange of goods and services between countries.

Total trade equals exports plus imports. In 2017, world trade was $34 trillion.
That's $17 trillion in exports plus $17 trillion in imports. One-quarter of trade was
in electrical machinery, computers, nuclear reactor parts, and scientific
instruments. Automotive contributed 9 percent. Commodities like oil, iron, and
diamonds added 19 percent.

In 2017, global trade grew 10.5 percent. In 2016, it had contracted 4 percent.
It had grown 2 percent in 2015, and 3.4 percent in 2014. It's returning to the
average annual 10 percent growth rate between 1961 and 2013.

International trade contributes about 27 percent to the global economy. Until

the 2008 financial crisis, world trade grew 1.9 times faster than economic growth.
Until 2017, trade grew more slowly than the global economy.

Advantages of International Trade: Exports create jobs and boost

economic growth. They give domestic companies more experience in producing
for foreign markets. Over time, companies gain a competitive advantage in global
trade. Trade also makes companies more efficient. Research shows that exporters
are more productive than companies that focus on domestic trade.

Imports allow foreign competition to reduce prices for consumers. It also

gives shoppers a wider variety of goods and services. Examples include tropical
and out-of-season fruits and vegetables.

Disadvantages of International Trade: The only way to boost exports is to

make trade easier overall. Governments do this by reducing tariffs and other blocks
to imports. That reduces jobs in domestic industries that can't compete on a global
scale. It also leads to job outsourcing. That's when companies relocate call centers,
technology offices, and manufacturing. They choose countries with a lower cost of
living. Countries with traditional economies could lose their local farming base.
That's because developed economies subsidize their agribusiness.
INDIA’S EXPORTS DATA CHARTS (2008-2018)

TYPES OF IMPORT/ EXPORT BUSINESS:

Export Management Company (EMC): An EMC handles export operations for

a domestic company that wants to sell its product overseas but doesn’t know how
(and perhaps doesn’t want to know how).the EMC does it all-hiring dealers,
distributors and representatives, handling and advertising; marketing and
promotions; overseeing marking and packaging; arranging shipping; and
sometimes arranging financing in some cases, the EMC even tales title to the
goods, in essence becoming its own distributor. EMC’s usually specialize by
product, foreign market or both, and unless they have taken title –are paid by
commission, salary or retainer plus commission.

EXPORT Trading Company (ETC): An export trading company is an

independent company that provides support services for firms engaged in
exporting. This may include warehousing, shipping, insuring and billing on behalf
of the client. Additionally, export trading companies may help manufacturers find
overseas buyers and provide them with other pertinent market information. A
group of producers can also form their own ETC.
 IMPORT/ EXPORT MERCHANT: The international entrepreneur is a
sort of free agent. He has no specific client base, and he doesn’t specialize in any
one industry or line of products .Instead, he purchases good directly from a
domestic or foreign manufacturers and then packs ,ships and resells the goods on
his own. This means, of course, that unlike the EMC, he assumes all the risks (as
well as all the profits).
Liberty Symbol
 Type Public, (BSE 526596, NSELIBERTSHOE)

Industry Shoe

Founded 1954

Headquarters Karnal, Haryana [1]

Key people Adesh Gupta (CEO)

Products Footwear

Revenue APRROX 600 CRORE 2015

Parent Liberty Group

Website libertyshoes.com
LIST OF DIRECTORS

1. Sh. Adesh Kumar Gupta (CEO& Executive Director)

2. Sh. Shammi Bansal (Executive Director)
3. Sh. Sunil Bansal (Executive Director)
4. Sh. Adeesh Kumar Gupta (Executive Director)
5. Sh.Ashok Kumar (Executive Director)
6. Sh. Raghubar Dayal (Independent Director)
7. Sh. Amitabh Taneja (Independent Director)
8. Sh .Rameesh Chandra Palhan (Independent Director)
9. Sh. Pushpinder Singh Grewal (Independent Director)
10. Smt. Lovelena Mody (Independent Director)

Registered Office

Libertypuram , 13th milestone,

G.T. Karnal, Kutail, P.O. Bastara ,
Distt. Karnal -132114, Haryana
Tel: (91) - 1748 – 251101 – 03
Fax (91) -1748 -251100
E-mail: lpm@libertyshoes.com
Website: www.libertyshoes.com
CIN: L19201HR1986PLC033185

Corporate Office

Ground floor , Tower – A, Building No. 8,

DLF Cyber City, Phase –II,
Gurugram - 122002,Haryana
Tel: (91) - 124 - 4616200
Fax (91) - 124 – 4616222
E-mail : mail@libertyshoes.com
Company Secretary & Compliance Officer

Munish Kakra (Chief Financial officer & Company Secretary)

Audit Committee
Raghubar Dayal
Rameesh Chandra Palhan
Sunil Bansal

Nomination and Remuneration Committee

Raghubar Dayal
Rameesh Chandra Palhan
Pushpinder Singh Grewal

Management Committee

Adesh Kumar Gupta

Shammi Bansal
Adeesh Kumar Gupta
Ramesh Chandra Palhan
Raghubar Dayal
Bankers
Corporation Bank
DBS Bank Ltd.
HDFC Bank Ltd.
Induslnd Bank Ltd.
Kotak Mahindra Bank Ltd.
State Bank Of India

Auditors

M/s Pradeep Tayal & Co.

Chartered Accountants
Indian Bank Building, G.T. Road
Panipat-132103, Haryana

Website

www.libertyshoes.com

Buy Liberty Foot Fashion Online on

libertyshoesonline.com
EXPORT COUNTRIES :

 UNITED KINGDOM
 USA
 BAHRAIN
 BANGLADESH
 DUBAI
 GERMANY
 GHANA
 HUNGARY
 QUWAIT
 MALAYSIA
 NETHERLAND
 NIGERIA
 QATAR
 SAUDI ARABIA
 SENEGAL
 SRILANKA
 TANZANIA
 THAILAND
 HISTORY

Liberty Shoes Limited (LSL) is an Indian shoes company, based in Karnal,

Haryana.

Liberty Shoes was incorporated in 1954 by three visionaries Mr. D P

Gupta, Mr. P D Gupta and Mr. R K Bansal from Karnal (Haryana).

It is the only company Indian company to be among the top 5 manufacturers

of leather footwear in the world with a turnover exceeding U.S. $100 million.

The company operates state of the art manufacturing facilities located at

Gharaunda, Libertypuram, Karnal, Uttaranchal, Ponta Sahib and Roorkee.

The company has a production capacity of 50,000 pairs of footwear a day.

Liberty shoes markets its products through a channel of 150 distributors,

350 exclusive showrooms and over 6000 multi–brand outlets, with a presence in
over 25 countries including France , Italy and Germany.

The company has two subsidiaries namely liberty retail revolutions (LRRL)
Engaged in footwear retailing and Liberty.

Foot Fashion Middle East FZE, Dubai set up for global retailing LRRL has
33 retail stores spread over the major cities in India.

The company has commenced its commercial production for non leather
shoes on 25th December 1993. Initially one direct injection soiling machine was
installed with a capacity of 240000 pairs per annum on single shift basis .The
second direct injection soiling machine was installed in March 94.From the
commencement of commercial production till 31st March 1994, the company has
been operating on full capacity. As the promoters are in this line for the last five
decades, the company is confident of maintaining this level of operations in the
future. Liberty Group has completed Five decades of its existence in the shoe
industry in 1994.
 VISION OF THE COMPANY

LIBERTY SHOES IS A RS. 1,000 CRORE VISION COMPANY

Values that we live by:

 To follow the highest standards of honest workmanships in whatever we

make
 To walk the extra mile to ensure customer satisfaction, worldwide
 To remain a true cosmopolitan to the spirit
 To remain a great corporation to associate with and to work for
 To know that, ’we are about people’

“ we are about people ”

MISSION OF THE COMPANY

“ Always one step ahead ”

Enriching the lives of our customers globally by our commitment to the industry
and by making available products and services that truly match their desires in
terms of style, comfort and value.
Products
Company manufactures stylish footwear for all age group and gender. Its in–house
research and development team focuses on developing new design for footwear
segment.

Company has created brands like Coolers, Freedom, Footfun, Fortune, Gliders,
Senorita, Tiptopp, Perfect, Fortune, Force 10, Healers are among others.
Brands

 FOR MEN: Healers, Rebounce , Coolers, Fortune, Force 10, Gliders, Windsor
and AHA

 FOR WOMEN: Healers, Force 10, Gliders, Senorita, Tiptop and AHA

 FOR KIDS: Footfun, Force 10, Gliders and Prefect

  SAFETY SHOES: Freedom, Warrior and Workman

HEALERS

The stylishly designed healers range covers the entire gamut of fashion footwear
from chic and formal to dressy casual while ensuring the sole provides the right
protection, support and comfort. Its innovative construction along with the
anatomical orthotic insoles aim to help millions of users improve mobility,
enhance comfort from heel to toe, and get relief of being stress free.

FORTUNE

The ultimate fashion statement for men, Fortune brings you a classy combination
of comfortable, suave and smart footwear options in pure leather and non leather.

FORCE10

A stunning range of performance-driven shoes, Force 10 combines excellence in

technology and an uber cool style with comfort features that allow for long
duration wear with ease. The brand has a dedicated range for ladies in the pastel
colors that add the oomph factor to the shoes.

SENORITA

A range available in trendy, hot and vibrant colors making it a perfect match for
the modern contemporary woman.
 LUCY LUKE

Join Lucy and Luke on their magical adventures across the universe. And make the
madness a part of your world with the all new collection of colourful and trendy
sandals & shoes for kids.

GLIDERS

A versatile range of casual footwear the Gliders range is suitable for different
occasions. From the casual and stylish lace ups with contrasting white souls for the
busy daily schedules of men and women to pumps and sandals with bright colors
for hangouts with friends. The range has a trending set of footwear for ladies too.

AHA

Colorful fun with AHA slippers. Go AHA this season with our attractive range of
colorful slippers

COOLERS

Keep the coolness quotient up in summers with Coolers!

PREFECT

The hard working school shoes that have found favor with numerous managements
of schools for their sturdy quality and comfort. They are also the favorite choice of
the parents and the school going children as they are a perfect match for the hefty
activity that the children indulge in.

Outlook

The company focuses on developing new designs, explore new markets and reduce
its dependence on the imported contents of raw materials.
COMPETITION WITH PEERS
Period 1 year

 Comparative remuneration profile as per published

information with respect to industry, size of the company,
profile of the position and person :

Sr. Particulars 1 2 3
No.
1 Name of the Bata India Ltd. Relexo Footwear Mirza
company Ltd. international
Ltd.
2 Type of industry Footwear Footwear Footwear
3 Financial year March,2016 March,2016 March,2016
ended
4 Annual Turnover Rs.2451.25 Rs.1715.27 RS.925.74
(Net of excise Crores Crores Crores
duty)
5 Designation, CEO &MD,B.E 1)MD, graduate, 1) MD ,diploma
personal and (mechanical),51 London 62 years in leather
remuneration years old, having old, having more technology,
profile (2016) 25 years of than 38 years o London, 60
experience in experience in years old,
similar similar field at a having 40 years
field/industry at remuneration of experience in
a remuneration comprising of similar field at a
comprising salary and remuneration
salary, commission comprising
allowances and totaling to Rs. salary and
prerequisites 879.88 Lakh p.a. prerequisite
totaling to totaling to Rs.
Rs.446.20 Lakh 146.38 Lakh
p.a. p.a.

2)Director 2) Whole time 2) Whole time

finance, director, director diploma
commerce graduate, 66 in leather goods
graduate,CA,57 years of age, technologies
years old ,having having more than UK, 59 years
more than 30 43 years of old 37 years of
years of experience in experience in
experience in similar field at a similar industry
similar field at a remuneration at a
remuneration comprising salary remuneration
comprising and commission comprising
salary and totaling to salary and
allowances and Rs.879.88 Lakh prerequisite
pre requisites p.a. totaling to Rs.
totaling to 118.27 Lakh
Rs.107.00 Lakh p.a.
p.a.
Objectives of the study:
 To know what is import and exports
 To understand about all different documents required for import and exports
 To understand the procedure of import and export

Limitations of study:
 The study is conducted only at company’s head office
 Many of the documents are very confidential so I cannot present those
documents here.

Common Import / Export Documents

There are many documents involved in international trade, such as commercial
documents, financial documents, transport documents, insurance documents and
other international trade related documents. In processing the export consignment,
documentation may be executed in up to four contracts: the export sales contract,
the contract of carriage, the contract of finance and the contract of cargo insurance.
It is therefore important to understand the role of each document and its
requirements in international trade.

1. Commercial Documents

 Quotation
An offer to sell goods and should state clearly the price, details of
quality, quantity, trade terms, delivery terms and payment terms.
Prepared by: exporter

 Sales Contract
An agreement between the buyer and the seller stipulating every detail
of the transaction. Since this is a legally binding document, it is therefore
advisable to seek legal advice before signing the contract.
Prepared by: exporter and importer
 Pro Forma Invoice
An invoice provided by a supplier prior to the shipment of
merchandise, informing the buyer of the kinds and quantities of goods to be
sent, their value, and importation specifications (weight, size and similar
characteristics). This is not issued for demanding payment but may be used
when applying for an import license / permit or arranging foreign currency
or other funding purposes.
Prepared by: exporter

 Commercial Invoice
A formal demand note for payment issued by the exporter to the
importer for goods sold under a sales contract. It should give details of the
goods sold, payment terms and trade terms. It is also used for the customs
clearance of goods and sometimes for foreign exchange purpose by the
importer.
Prepared by: exporter

 Packing List
A list with detailed packing information of the goods shipped.
Prepared by: exporter

 Inspection Certificate
A report issued by an independent surveyor (inspection company) or
the exporter on the specifications of the shipment, including quality,
quantity, and / or price, required by certain buyers and countries.
Prepared by: inspection company or exporter

 Insurance Policy
An insurance document, with full details of the insurance coverage,
evidencing insurance has been taken out on the goods shipped.
Prepared by: insurer or insurance agent or insurance broker
 Insurance Certificate
This certifies that the shipment has been insured under a given open
policy and is to cover loss of or damage to the cargo while in transit.
Prepared by: insurer or insurance agent or insurance broker

 Product Testing Certificate

This certifies the products are conformed to a certain international /
national technical standard, such as product quality, safety and
specifications.
Prepared by: accredited laboratories
2. Transport Documents

 Shipping Order S/O

A document with details of the cargo and the shipper's requirements,
and is the basic document for preparing other transport documents such as
bill of lading, air waybill, etc.
Prepared by: shipper / transport companies.

 Dock Receipt D/R or Mate's Receipt

A receipt to confirm the receipt of cargo on quay/warehouse pending
shipment. The dock receipt is used as documentation to prepare a bill of
lading. It has no legal role regarding processing financial settlement.
Prepared by: shipping company

 Bill of Lading (B/L)

An evidence of contract between the shipper of the goods and the
carrier. The customer usually needs the original as proof of ownership to
take possession of the goods. There are two types: a STRAIGHT bill of
lading is non-negotiable and a negotiable or shipper's ORDER bill of lading
(also a title document) which can be bought, sold or traded while goods are
in transit and is used for many types of financing transactions.
Prepared by: shipping company
 Air Waybill (AWB)
A kind of waybill used for the carriage of goods by air. This serves as
a receipt of goods for delivery and states the condition of carriage but is not
a title document or transferable / negotiable instrument.
Prepared by: airline

 House Air Waybill (HAWB)

An air consignment note issued by an air freight agent to provide the
cargo description and records. Again, it is not a title document.
Prepared by: forwarding agent
 Packing List (sometimes as packing note)
A list providing information needed for transportation purpose, such
as details of invoice, buyer, consignee, country of origin, vessel / flight date,
port / airport of loading, port / airport of discharge, place of delivery,
shipping marks / container number, weight / volume of merchandise and the
fullest details of the goods, including packing information.
Prepared by: shipper

3. Financial Documents

 Documentary Credit D/C

A bank instrument (issuing or opening bank), at the request of the
buyer, evidencing the bank's undertaking to the seller to pay a certain sum of
money provided that specific requirements set out in the D/C are satisfied.
Prepared by: the issuing bank upon an application made by the importer

 Collection Instruction
An instruction given by an exporter to its banker, which empowers the
bank to collect the payment subject to the contract terms on behalf of the
exporter.
Prepared by: exporter
 Bill of Exchange (B/E) or Draft
An unconditional written order, in which the importer addressed to
and required by the exporter to pay on demand or at a future date a certain
amount of money to the order of a person or bearer.
Prepared by: exporter

 Trust Receipt (T/R)

A document to release a merchandise by a bank to a buyer (the bank
still retains title to the merchandise), the buyer, who obtains the goods for
processing is obligated to maintain the goods distinct from the remainder of
his / her assets and to hold them ready for repossession by the bank.
Prepared by: importer

4. Government Documents

 Certificate of Origin (CO)

This certifies the place of manufacture of the exported goods to meet the
requirements of the importing authorities.
Prepared by : Trade and Industry Department and five Chambers of
commerce [1]

 Certificate of Origin Generalized Systems of Preferences (GSP)

Form A (or as Form A)
A CO to support the claim for preferential tariff entry (a reduced or
zero rate) of the exporting country's products into the GSP donors under the
GSP they operate. In general, a Form A is issued only when the goods
concerned have met both the origin rules of the preference receiving country
as well as the origin criteria of the respective donor country's GSP.
Prepared by: Trade and Industry Department and five Chambers of
Commerce
  Certificate of origins ( new procedure of allotment i.e, REX no.)
For the purpose of schemes of generalised tariff preferences of the
European Union, Norway, Switzerland and Turkey is now required to
become a Registered Exporter with allotment of REX NUMBER.

ACCORDINGLY, LIBERTY SHOES LTD. HAVING A REX NO.

INREX3391001470DG033 DATE-20.07.18
 RESEARCH

Research is a collection, analysis and interpretation of data to answer a

certain question or solve a problem. It is an art of scientific investigation. Research
is an organized and systematic study of material and sources in order to discover
new things and establish facts and reach new conclusion.

“RESEARCH IS SEARCH FOR KNOWLEDGE”

OR
“RESEARCH IS SYSTEMATIC EFFORTS TO GAIN KNOWLEGDE”.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It

may be understood as a science of studying how research is done scientifically. In
fact, research is an art of scientific investigation.

The procedure adopted for conducting the research requires a lot of

attention as it has direct bearing on accuracy, reliability and adequacy of result
obtained. Research methodology is a way to systematically solve the research
problems.

Collection of data:
There are several ways of collecting the appropriate data which differ
considerably in context of money ,cost, time and other sources at the disposable of
the researcher.There are two types of data:

o Primary data
o Secondary data

Primary data

Primary data are those which are collected a fresh for the first time andthus
happen to be original in character.
 Observation
 Direct communication with respondent
 Personal interview

Secondary data

Secondary data are those which have already been collected by someone else
and have already been passed through statistical process.

In this project report secondary data is used

Methods of data collection

 Invoice
 Sales report
 FINDINGS

According to foreign trade policy 2015-20

Mandatory documents required for export of goods from India

 Bill of lading

 Commercial invoice cum packing list

 Shipping bill

Mandatory documents required for import of goods into India

 Bill of lading

 Commercial invoice cum packing list

 Bill of entry

THE TERM ON WHICH BUSINESS DEALS ARE DONE

FREE ON BOARD (FOB)

FOB, "Free On Board", is a term in international commercial law specifying at
what point respective obligations, costs, and risk involved in the delivery of goods
shift from the seller to the buyer under the Incoterms standard published by
the International Chamber of Commerce. FOB is only used in non-containerized
sea freight or inland waterway transport. As with all Incoterms, FOB does not
define the point at which ownership of the goods is transferred.
CIF
CIF - Cost, Insurance, Freigh ,the seller delivers when the goods pass the ship's rail
in the port of shipment. Seller must pay the cost & freight necessary to bring goods
to named port of destination. Risk of loss & damage same as CFR. Seller also has
to procure marine insurance against buyer's risk of loss/damage during the
carriage. Seller must clear the goods for export. This term can only be used for sea
transport
.

FCA - Free Carrier

This term means that the seller delivers the goods, cleared for export, to the carrier
nominated by the buyer at the named place. Seller pays for carriage to the named
place.

RISK INVOLVED:

Political and security risk

Political instability, including wars or other conflict, can affect business through
defaults on payments, shipping delays or loss of product. Civil disorder may affect
the safety of your staff and in-market partners, or even your own personal safety
when travelling.

Check Trade travel advisory website before travelling or entering into any export
agreement. Note that some large countries may have particularly unstable or
dangerous regions, while other parts of the country may be safer to trade in.

Cultural and language differences

Overseas customers won’t necessarily like or value the exact same things as the
local customers – and there’s no bigger export risk than having a product nobody
will buy.

Make sure, the cultural habits of a target country or region to assess the
acceptability of your product or service. Company might need to adapt new
product for the market, or redesign packaging, logos or corporate colors to suit
local preferences. Traders also need to find out how other cultures negotiate and
make their business decisions, to communicate effectively and reduce risk.

Financial risks

Financial risks to export business can include:

 non-payment or late payment by export customers
 loss or damage of goods in transit
 Currency risk is one of the biggest of these challenges. Fluctuating exchange
rates are difficult to budget for – if currency risk is not taken into account,
currency moves can swallow profits.

Intellectual property risk

Intellectual property (IP) may be one of the most valuable assets in your business –
whether it’s a unique design, formula, invention, process or system.

If it’s carefully protected, it can form powerful barrier to competitors – but if it’s
stolen or disclosed without your permission, company’s entire business may be at
risk.
METHODS OF PAYMENT
Documentary Collection
A documentary collection is a process in which a seller instructs their bank to
forward documents related to the export of goods to a buyer's bank with a request
to present these documents to the buyer for payment, indicating when and on what
conditions these documents can be released to the buyer.
The buyer may obtain possession of goods and clear them through customs, if the
buyer has the shipping documents (original bill of lading, certificate of origin,
etc.). The documents, however, are only released to the buyer after payment has
been made ("Documents against Payment") or payment undertaking has been given
- the buyer has accepted a bill of exchange issued by the seller and payable at a
certain date in the future (maturity date) ("Documents against Acceptance").

Letter of Credit

A letter of credit is a document from a bank that guarantees payment. There are
several types of letters of credit, and they provide security when buying and
selling.

 Seller protection: If a buyer fails to pay a seller, the bank that issued a letter
of credit will pay the seller if the seller meets all of the requirements in the
letter. This provides security when the buyer and seller are in different
countries.
 Buyer protection: Letters of credit can also protect buyers. If you pay
somebody to provide a product or service and they fail to deliver, you might
be able to get paid using a standby letter of credit. That payment can be a
penalty to the company that was unable to perform, and it’s similar to a
refund, allowing you to pay somebody else to provide the product or service
needed.

Cash in Advance
Cash in Advance/Prepayment occurs when a buyer sends payment in the agreed
currency and through agreed method to a seller before the product is manufactured
And/or shipped. Upon receipt of payment this seller then ships the goods and all
the necessary shipping and commercial documents directly to the buyer.
 AVAILMENT OF EXPORT
INCENTIVES ON EXPORTATION OF
GOODS
Besides the above, on export of goods government is providing export incentives
agenda as under:-

1. EXPORT FROM INDIA SCHEMES

The objective of scheme is to provide rewards to exporters to offset

infrastructural inefficiencies and associated costs.

There shall be following two schemes for exports of merchandise and services
respectively:-
A. Merchandise Exports from India Schemes (MEIS)
B. Service Exports from India Scheme (SEIS)

Nature of Rewards
Duty credit scrips shall be granted as rewards under MEIS & SEIS.
The Duty credit scrips and goods imported/domestically procured against
them shall be freely transferable. The duty credit scrips can be used for :

 Payment of basic customs duty and additional customs duty

specified under sections 3(1) ,3 (3) and 3(5) of the customs tariff Act
1975 for import of inputs or goods, including capital goods, as per
DoR notifications, except items listed in appendix 3A.

 Payment of central excise duties on domestic procurement of

inputs or goods,

 Payment of basic customs duty and additional custom duty

specified under Section 3(1), 3(3) and 3(5) of the customs tariff Act
1975 and fee as per paragraph 3 .18 of the policy.
Merchandise exports from India scheme (MEIS)

Objective:
Objectives of the MEIS are to promote the manufacture and export of
notified goods/products.

Entitlement under MEIS

Exports of notified goods and products with capital ITC [HS] Code, to
notified markets as listed in appendix 3B shall be rewarded under MEIS. Appendix
3B also lists the rates of rewards on various notifies products {[ITC]( HS)} code
wise.

1. DUTY DRAWBACK

Object and Meaning of “Drawback”

Draw of duties (excise and customs both) has been part of the excise and
customs law since beginning. The idea being that when goods are exported their
shall be relief on the duties suffered by those goods including inputs used in the
manufacture of those goods .The whole purpose is that taxes should not be
exported and taxes have to be neutralized by granting rebate/refund of taxes.
Technically it is termed as “zero rating” of exports.

2. DUTY FREE IMPORT ENTITLEMENT TO REGISTERED EXPORTERS

[ISSUING AUTHORITY COUNCIL FOR LEATHER EXPORTS (CLE)]. THE SAID
CERTIFICATE ARE ISSUED ON YEALY BASED.

LIBERTY SHOES LTD. IS AVAILING EVERY YEAR, ALL THE ABOVE BENEFITS
ON EXPORT OF GOODS.
 SPECIMEN SHEETS OF EXPORT
DOCUMENTS OF LIBERTY SHOES
LTD.
CONCLUSION
After doing study for understanding Export process and Import-Export
documentation, I would like to conclude that globalization is spreading its wings
throughout whole world and India is not remained untouched in anyways. After
liberalization of Indian economy in early 199’s, growth has been remarkable,
especially after introduction of new FDI policies in late 1990’s.

As result export was encouraged and a lot of new players came forward to do
global trade and international business became one of the rapidly growing fields in
India. From past few months growth has been slow down to a little extent because
of global recession but hopefully soon it will pick up the pace again.

Custom house agents are the main chain for Importing- Exporting goods. They
facilitate the documentation part of it which is again very complicated. They also
help to arrange containers and clearing the shipment of imported goods. They have
to remain in continuous contacts with customs and excise.
 BIBLIOGRAPHY

WEBSITES

www.libertyshoes.com

www.libertyfreedom.com

BOOKS

Dr. Tejinder Sharma - - - Export Marketing Management

Dr. Parul Gupta - - - Export Import Management