EXPORT- Import Project Agrocel Industries Limited

Group MEMBERS:
1. Ushakiran Bastikar 2. Swapnil Chavan 3. Khalid Shaikh

Roll No
02 04 33

LETTER HEAD OF AGROCEL INDUSTRIES LIMITED

INDEX
1. Introduction. 2. Divisions of Agrocel Industries Limited. 3. Countries to which Company Exports 4. Export Procedure. 5. Countries to which Company Imports. 6. Import Schemes 7. Modes of Transport 8. Export Documents 9. Special Economic Zones(SEZs) 10. Acknowledgement

INTRODUCTION
Agrocel Industries Limited is part of the Shroff Group of Companies built by Shroff brothers Champraj, Govindji and Kantisen, which includes Excel Industries Limited, Excel Crop Care Limited, Transpek Industries Limited, TML Industries and Hyderabad Chemicals Limited. Agrocel Industries Limited is globally acknowledged as a leader in the manufacture of chemicals and agrochemicals. Even as the Shroff brothers were building their business empire and establishing their irrevocable stamp on the chemical industrial world, their dream was to return to or at least be of service to their homeland the district of Kachchh in Gujarat. Agrocel Industries Limited Companies around the world are India, Belgium, China and Australia. But the company neither has any branches in Pakistan nor export or import goods from or to them.

DIVISIONS OF AGROCEL INDUSTRIES LIMITED

Agrocel Industries Limited is a closely-held limited company comprising two divisions:

1. Marine Chemicals Divisions: The Marine Chemicals Division which took on the challenge of setting up the first-ever industry in the inaccessible salt desert area, uses its world class technical expertise to transform sea bittern into virgin Bromine as well as a wide range of value-added Bromine compounds. As they have chemical industry division they have registered under Chemexcil Promotion Council.

Product Range:
1. Brominating Agents 2. Bromo Acids 3. Alkyl / Acyl Bromide 4. Bromoesters 5. Bromine Compounds 6. Inorganic Bromine Compound

2. Agri- Service Division: The Agri-Service Division seeks to bring prosperity and equity to the small and marginal Indian farmer by involving him in organic and Fair-trade movements and taking care of output marketing with value addition for main as well as rotational crops. As they have cotton industry division they have registered this section under Apeda Promotion Council.

Product Range:
1. Cotton 2. Chick peas 3. Cotton oil 4. Sesame 5. Honey 6. Castor 7. Raisins 8. Cumin 9. Cashew 10. Groundnuts

Countries To which company exports

The following are the countries to which Agrocel exports: 1. Europe 2. Asia: In Asia, a. Hongkong. b. Singapore. c. Korea. 3. Israel.

Export Procedure
The steps in Export Procedure are as follows: 1. Pre-shipment Stage: In this stage exporter studies different types of foreign market and then selects the best ans suitable market. Then he approaches the foreign buyer and places an inquiry & offer to the foreign buyer. After confirmation of the order Letter of Credit is opened & gets Pre-Shipment Finance for production. After Production of the goods exporter gets central excise duty. Then after getting Insurance the are sent to C&F agent for smooth clearance of goods from custom procedures. 2. Shipment Stage: Export, cargo can be exported to the overseas buyer by sea, air or land. However, shipment by sea is the most popular and generally resorted to, as it is comparatively cheaper. Besides, the ships capacity is far greater than other modes of transportation. Nevertheless, transportation by air is utilized for export of expensive items like, diamonds, gold, etc.

3. Post-shipment Stage: C&F agent ends the documents to the agent after inspection. Later, when he goods are shipped to importer exporter gives details tpthe importer and sends him one copy of all documents. Then importer sends the document to bank for negotiation. After negotiating these documents, commercial bank sends the commercial invoice to the exporter. Then exporter gets immediate payment from his bank after submitting the documents by signing a letter of indemnity.

COUNTRIES TO WHICH COMPANY IMPORT

The following are the countries to which they import:

1. Europe 2. China 3. Hongkong 4. Korea 5. Singapore

Import Schemes
The following are the import schemes adopted by Agrocel Company for conducting Import Trading.

1. Advance Licenses:
An Advance License is issued to allow duty free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts etc. which are consumed in the course of their use to obtain the export product, may also be allowed under the scheme. Advance License can be issued for:a) Physical exports:- Advance License may be issued for physical exports including exports to SEZ to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) for import of inputs required for the export product. Intermediate supplies:- Advance License may be issued for intermediate supply to a manufacturer-exporter for the import of inputs required in the manufacture of goods to be supplied to the ultimate exporter/deemed exporter holding another Advance License Deemed exports:- Advance License can be issued for deemed export to the main contractor for import of inputs required in the manufacture of goods to be supplied.

b)

c)

2. Duty Draw Back: Duty Draw Back scheme is administrated by

the Directorate of Drawback, Ministry of Finance. Under this scheme, an exporter is entitled to claim:

Customs duty paid on the import of raw materials, components and consumables. Central excise duty paid on indigenous raw materials, components and consumables utilized in the manufacture of exportable goods. The rates of drawbacks are divided into 3 categories: 1. All Industry Rates. 2. Brand Rates. 3. Special Brand Rates. 3. EPCG schemes: EPCG scheme was introduced by the EXIM policy in 1992-1997 in order to enable manufacturer exporter to import machinery and other capital goods for export production at concessional or no custom duties at all. This facility is subject to export obligation. The 4 types of EPCG schemes are: a. Zero Duty EPCG Schemes. b. Concessional 3% Duty EPCG Scheme. c. EPCG for Projects. d. EPCG for Retail Sector.

Modes of Transport
The Company uses all four types of transportation1. Airways, 2. Roadways, 3. Railways and 4. Sea.

The company adopts only those modes which are available at cheaper rates. They generally use Sea routes for doing their export and import trading for chemical products. They even said that different vessels go in different countries. For exporting agricultural products the company mostly uses Airways as these products are perishable in nature.

The Company adopts the following INCOTERMS: 1. Free On Board (FOB) 2. Carriage And Freight (C&F) 3. Carriage, Insurance & Freight (CIF) 4. Ex-Works (EXW)

Export Documents
Agrocel Industries Limited uses the following documents for their business:

1. Letter of Credit: Letter of Credit is a document that is issued by the importers bank in favour of the exporter giving the importer the authority to draw bills up to a particular amount (as per the Export Contract Price) covering specified shipment of goods and assuring the exporter of payment against the delivery of shipping documents

2. Bill of Lading: Bill of Lading is the document issued by a shipping company or its agent acknowledging the receipt of the goods on to the vessel & undertaking to deliver the goods in the order & conditioned as received. It is a document of title to the goods.

3. Commercial Invoice: Commercial Invoice is the basic & most important document. It has got all the details of Export Contract. It is also known as Document of Content. It is basically prepared by exporter after forming export contract.

4. Packing List/ Weight List: The exporter prepares the packing list to facilitate the buyer to check the shipment. It contains the detailed description of the goods, packed in each case, their gross & net weights etc. 5. Multimodal Dangerous Goods Form: This form is given by the exporter to the importers countrys government that the goods exporter by him is hazardous in nature and the goods are properly packed for the transport.

SPECIAL ECONOMIC ZONES (SEZs)

In India, SEZs are the special zones created by the Government and run by Government-Private or solely Private ownership, to provide special provisions to develop industrial growth in that particular area. The government of India launched its first SEZ in 1965, in Kandla, Gujarat. The EXIM Policy announced on March 31, 2000 incorporated the idea of creating Special Economic Zones (SEZs) on the model of the Chinese. SEZs the productive units operating in the SEZs will get all types of facilities and will have maximum flexibility of operations. They will be able to import components and raw materials from abroad and also purchase them from the domestic tariff area without payment of Terminal Excise Duty. The units will not be bound by labour laws. The branches of commercial banks operating in SEZs will be free from restrictions relating to CRR and SLR so that they can use a larger part of their resources for lending. They will work like overseas branches of Indians banks. At presents the unit operating in SEZs are given concessions in income tax for 10 years or up to 2009-10 whichever is earlier. But under the EXIM policy of 31 March 2002, the concessions are to be extended permanently.

 Main Objectives of the SEZ:

(a)Generation of additional economic activity (b) Promotion of exports of goods and services; (c) Promotion of investment from domestic and foreign sources; (d) Creation of employment opportunities; (e) development of infrastructure facilities;

Features of SEZ:
a. The zones are proposed to setup by private sector or by State Government in association with Private sector. Private sector is also invited to develop infrastructure facilities in the existing SEZs. b. State Governments have a lead role in the setting up of SEZs. c. A framework is being developed by creating special windows

ACKNOWLEGEMENT

We are very thankful to everyone who all supported us, for we have completed our project effectively and moreover on time. We are equally grateful to our teacher Mrs.Geetha Narayan. She gave us moral support and guided us in different matters regarding the topic. She had been very kind and patient while suggesting us the outlines of this project and correcting our doubts. We thank her for her overall supports. Thanking you