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APPENDIX I
Questionnaire for Pilot Study
Please identify the issues and challenges in context of outbound logistics activities of
Indian Apparel Exports.
Stage I
Section 1: Customs Clearance
Issues and Challenges Yes/No Remarks, if any
Technical challenges in EDI systems
Number of staff/officers/resources at customs
Wrong declaration by shipper
Corruption/ bureaucracy/non-cooperation of
customs officers
Understanding of valuation and supporting
procedures/policies of customs officials
Missing documents/error in documents or in
registered data at customs
Manual /physical inspection at customs
Heightened security initiative like CSI, CTPAT
at customs
Appeal process against decisions at customs
Product/tariff classification issues at customs
Limited working hours of customs officials
Please add if any other issue or challenge
Section 2: Export Documentation
Issues and Challenges Yes/No Remarks, if any
Partial automation/integration of systems for
export documentation at various export related
agencies
Level of clarity in export sales contract/
international practices and guidelines
Clerical errors in export related documents
Number of documents required in existing
process
Level of complication involved in export
documentation
Please add if any other issue or challenge
269
Section 3: Port warehousing and material handling
Issues and Challenges Yes/No Remarks, if any
Space for seaport operations/storage/internal
movement
Berthing space and quay infrastructure
Seaport information technology (IT) system
Number of cargo handling equipment at sea port
Number of vehicle entry points at seaport
Bureaucratic issues at seaport operations
Labour related issues at seaport
Coordination between various parties involved at
seaport operations
Increased security regulations at seaport
Level of maintenance practices at seaport
Unfavourable weather conditions / acts of God at
port
Please add if any other issue or challenge
Section 4: ICD/CFS warehousing and material handling
Issues and Challenges Yes/No Remarks, if any
Number of cargo handling equipment at
ICD/CFS
Number of vehicle entry points at ICD/CFS
Availability of storage space at ICD/CFS
Number of rail sidings at ICD/CFS
Technology level of warehousing systems at
ICD/CFS
Level of training and experience of people at
ICD/CFS
Coordination between various intermodal
players involved at ICD/CFS
Level of maintenance practices at ICD/CFS
Increased security regulations at ICD/CFS
Please add if any other issue or challenge
Section 5: Road Transportation
Issues and Challenges Yes/No Remarks, if any
Quality /condition of roads
Availability of trucks/trailers for road transit
Level of efficiency /technology (GPS, etc.)
inbuilt in trucks /trailers for road transit
270
Level of expansion of road network
Level of professionalism/skills of truck driver
Time involved in interstate regulatory check
points
Waiting time due to vehicle entry restrictions in
cities
Level of maintenance practices of trucks/trailers
Unfavourable weather conditions / acts of God
during road transit
Please add if any other issue or challenge
Section 6: Rail Transportation
Issues and Challenges Yes/No Remarks, if any
Availability of rakes/wagons for rail
transportation
Number of dedicated tracks for container rail
transportation
Frequency of container rail services due to
evacuation constraints
Level of planning and coordination in cargo rail
services
Level of priority to passenger trains over
container trains
Unfavourable weather conditions / acts of God
Please add if any other issue or challenge
Section 7: Export Packaging (Containerisation)
Issues and Challenges Yes/No Remarks, if any
Availability of containers for garment stuffing
Time involved in LCL consolidation
Please add if any other issue or challenge
271
Please identify the cost implication factors to Indian apparel exporters due to delay
in apparel export shipments caused by logistics issues and challenges.
Cost Implication factors Yes/No Remarks, if any
Increase administration workload and costs
Increase transport costs
Affect sales and promotion plans (Company’s
image)
Inventory costs
Account receivable and cash flow
Custom-port costs (inspection, storage,
clearance, etc.)
Please add if any other issue or challenge
272
Stage II
Please advise gateway seaports for following apparel clusters
Delhi NCR Jaipur Ludhiana Bangalore Tirupur
Seaports
Please advise cycle time (in number of days) for below logistics activities in no
delay scenario (The cycle time of an activity is defined as elapsed time span from
start till end of activity)
Please consider FOB Sea mode for apparel export shipments (from ex-factory till ex-
county node)
Delhi NCR Jaipur Ludhiana Bangalore Tirupur
Export
Documentation
(with external
agencies)
Export Packaging
(Containerisation)
Customs
Clearance
ICD/CFS related
activities
Road
Transportation
Rail
Transportation
Seaport related
activities
Please suggest number of days of delay which can be managed for loading of
apparel shipments on the planned vessel.
No. of days…………………………..
Please add
remarks………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Please validate below identified issue during first stage
Issues and Challenges Yes/No
Lack of availability of Garment on Hanger (GOH) containers
Remarks, if any:
273
Stage III
Please validate below mentioned cycle time (in number of days) of logistics
activities for apparel clusters. Please answer as Yes or No.
Destination ports for North India Apparel Cluster: JNPT Mumbai, Mundra, Pipavav
Destination ports for South India Apparel Cluster: Chennai, Tuticorin
Document-
ation
Customs
Clearance
Container-
isation
ICD/CFS
related
activities
Road
Trans.
Rail
Trans.
Seaport
Related
activities
Total
time
Delhi
NCR 1 0.5- 1 0.5- 1 1 3-4 2-3 1 6-7
Please
validate
Jaipur 1 0.5- 1 0.5- 1 1 2-3 2 1 6-7
Please
validate
LDH 1 0.5- 1 0.5- 1 1 3 4-6 1 7-8
Please
validate
BLR 1 0.5- 1 0.5- 1 0.5- 1 0.5 0.5- 1 1 4-5
Please
validate
Tirupur 1 0.5- 1 0.5- 1 0.5- 1 0.5 1 4-5
Please
validate
Please give your remarks if any
Please validate number of days of delay which can be managed for loading of
apparel shipments on the planned vessel.
No. of days which can be managed for catching the
planned vessel
Please
validate in
Yes or No
North India Cluster 1-3 days (but not certain)
South India Cluster
(Mother Vessel from
Colombo)
1-3 days (but not certain)
Please validate the below remark Please
validate in
Yes or No
If delay exceeds for more than three days then it is highly improbable to
load the cargo on the same vessel unless exporter bears extra transportation
cost (to send the cargo from landlocked origin) till the gateway port
through air mode or with express road services) and other kinds of costs.
Although there is no surety that cargo will certainly get loaded on the
planned vessel
274
APPENDIX II
Questionnaire for Phase II- Stage I study
Name of the organization: _____________________________
Location of your office: _______________________________
Respondent Name: ___________________________________
Designation: ________________________________________
Please rank below outbound logistics activities of Indian Apparel exports in terms of
their severity level of affecting delivery lead time.
(Please rank 1 being most severe)
Section 1: Outbound Logistics activities
Rank
Export Documentation (with external agencies)
Export Packaging (Containerisation)
Customs Clearance
ICD/CFS warehousing and material handling
Road Transportation
Rail Transportation
Seaport warehousing and material handling
Please rank below of issues & challenges involved in outbound logistics activities of
Indian Apparel exports in terms of their severity level of affecting delivery lead
time.
(Please rank 1 being most severe)
Section 2: Customs Clearance
Issues and Challenges Rank
Technical challenges in EDI systems
Number of staff/officers/resources at customs
Wrong declaration by shipper
Corruption/ bureaucracy/non-cooperation of customs officers
Understanding of valuation and supporting procedures/policies of
customs officials
Missing documents/error in documents or in registered data at
customs
Manual /physical inspection at customs
Heightened security initiative like CSI, CTPAT at customs
Appeal process against decisions at customs
Product/tariff classification issues at customs
Limited working hours of customs officials
275
Section 3: Export Documentation
Issues and Challenges Rank
Partial automation/integration of systems for export documentation
at various export related agencies
Level of clarity in export sales contract/ international practices and
guidelines
Clerical errors in export related documents
Number of documents required in existing process
Level of complication involved in export documentation
Section 4: Port warehousing and material handling
Issues and Challenges Rank
Space for seaport operations/storage/internal movement
Berthing space and quay infrastructure
Seaport information technology (IT) system
Number of cargo handling equipment at sea port
Number of vehicle entry points at seaport
Bureaucratic issues at seaport operations
Labour related issues at seaport
Coordination between various parties involved at seaport operations
Increased security regulations at seaport
Level of maintenance practices at seaport
Unfavourable weather conditions / acts of God at port
Section 5: ICD/CFS warehousing and material handling
Issues and Challenges Rank
Number of cargo handling equipment at ICD/CFS
Number of vehicle entry points at ICD/CFS
Availability of storage space at ICD/CFS
Number of rail sidings at ICD/CFS
Technology level of warehousing systems at ICD/CFS
Level of training and experience of people at ICD/CFS
Coordination between various intermodal players involved at
ICD/CFS
Level of maintenance practices at ICD/CFS
Increased security regulations at ICD/CFS
Section 6: Road Transportation
Issues and Challenges Rank
Quality /condition of roads
Availability of trucks/trailers for road transit
Level of efficiency /technology (GPS, etc.) inbuilt in trucks /trailers
for road transit
Level of expansion of road network
276
Level of professionalism/skills of truck driver
Time involved in interstate regulatory check points
Waiting time due to vehicle entry restrictions in cities
Level of maintenance practices of trucks/trailers
Unfavourable weather conditions / acts of God during road transit
Section 7: Rail Transportation
Issues and Challenges Rank
Availability of rakes/wagons for rail transportation
Number of dedicated tracks for container rail transportation
Frequency of container rail services due to evacuation constraints
Level of planning and coordination in cargo rail services
Level of priority to passenger trains over container trains
Unfavourable weather conditions / acts of God
Section 8: Export Packaging (Containerisation)
Issues and Challenges Rank
Availability of containers for garment stuffing
Availability of containers for hanging garment stuffing
Time involved in LCL consolidation
277
APPENDIX III
Questionnaire for Phase II- Stage II study
Name of the organization: _____________________________
Location of your office: _______________________________
Respondent Name: ___________________________________
Designation: ________________________________________
Please rate below outbound logistics activities of Indian Apparel exports (Scale 1-5)
in terms of their severity level of affecting delivery lead time.
(Please rate 1 being least severe and 5 being most severe)
Please tick for your rating selection
Section 1: Outbound Logistics activities
1 2 3 4 5
Export Documentation (with external agencies)
Export Packaging (Containerisation)
Customs Clearance
ICD/CFS warehousing and material handling
Road Transportation
Rail Transportation
Seaport warehousing and material handling
Please rate below of issues & challenges involved in outbound logistics activities of
Indian Apparel exports (Scale 1-5) in terms of their severity level of affecting
delivery lead time.
(Please rate 1 being least severe and 5 being most severe)
Please tick for your rating selection
Section 2: Customs Clearance
Issues and Challenges 1 2 3 4 5
Technical challenges in EDI systems
Number of staff/officers/resources at customs
Wrong declaration by shipper
Corruption/ bureaucracy/non-cooperation of customs
officers
Understanding of valuation and supporting
procedures/policies of customs officials
Missing documents/error in documents or in
registered data at customs
Manual /physical inspection at customs
278
Heightened security initiative like CSI, CTPAT at
customs
Appeal process against decisions at customs
Product/tariff classification issues at customs
Limited working hours of customs officials
Section 3: Export Documentation
Issues and Challenges 1 2 3 4 5
Partial automation/integration of systems for export
documentation at various export related agencies
Level of clarity in export sales contract/ international
practices and guidelines
Clerical errors in export related documents
Number of documents required in existing process
Level of complication involved in export
documentation
Section 4: Port warehousing and material handling
Issues and Challenges 1 2 3 4 5
Space for seaport operations/storage/internal
movement
Berthing space and quay infrastructure
Seaport information technology (IT) system
Number of cargo handling equipment at sea port
Number of vehicle entry points at seaport
Bureaucratic issues at seaport operations
Labour related issues at seaport
Coordination between various parties involved at
seaport operations
Increased security regulations at seaport
Level of maintenance practices at seaport
Unfavourable weather conditions / acts of God at port
Section 5: ICD/CFS warehousing and material handling
Issues and Challenges 1 2 3 4 5
Number of cargo handling equipment at ICD/CFS
Number of vehicle entry points at ICD/CFS
Availability of storage space at ICD/CFS
Number of rail sidings at ICD/CFS
Technology level of warehousing systems at
ICD/CFS
Level of training and experience of people at
ICD/CFS
Coordination between various intermodal players
involved at ICD/CFS
279
Level of maintenance practices at ICD/CFS
Increased security regulations at ICD/CFS
Section 6: Road Transportation
Issues and Challenges 1 2 3 4 5
Quality /condition of roads
Availability of trucks/trailers for road transit
Level of efficiency /technology (GPS, etc.) inbuilt in
trucks /trailers for road transit
Level of expansion of road network
Level of professionalism/skills of truck driver
Time involved in interstate regulatory check points
Waiting time due to vehicle entry restrictions in
cities
Level of maintenance practices of trucks/trailers
Unfavourable weather conditions / acts of God
during road transit
Section 7: Rail Transportation
Issues and Challenges 1 2 3 4 5
Availability of rakes/wagons for rail transportation
Number of dedicated tracks for container rail
transportation
Frequency of container rail services due to
evacuation constraints
Level of planning and coordination in cargo rail
services
Level of priority to passenger trains over container
trains
Unfavourable weather conditions / acts of God
Section 8: Export Packaging (Containerisation)
Issues and Challenges 1 2 3 4 5
Availability of containers for garment stuffing
Availability of containers for hanging garment
stuffing
Time involved in LCL consolidation
280
APPENDIX IV
Questionnaire for Phase III study
Name of the Organisation ____________________________________
Name of the Respondent_____________________________________
Designation _______________________________________________
Gateway Port______________________________________________
Freight Forwarders you work
with________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
________________________________________________________
Rank the below outbound logistics activities in terms of their severity level of
affecting delivery lead time of Indian Apparel Exports
Rank below logistics activities with 1 being most severe
(Please consider only for Sea Mode shipment, INCO Term – FOB, Port)
Documentation Customs
Clearance
Export
Packaging
ICD/CFS
related
activities
Road
Transportation
Rail
Transportation
Seaport
related
activities
Frequency of delays due to issues and challenges in Outbound Logistics activities
(from ex-factory to ex-country)
(Please allocate frequency weightage out of 100, total weightage distributed should
be 100%)
NOTE: For example on an average, an exporter may face no delay (15% times),
delay of 1 day (20% times), 2 days (15% times), 3 days (15% times), 4 days (10%
times), 5 days (10% times), 6 days (5% times) and 5% times more than 7 days due to
problems in documentation, consolidation, trucking, customs, transportation, etc.
Delay in number of days
1 day 2 days 3 days 4 days 5 days 6 days 7 days More than 7
days
281
Cost Implication due to Outbound Logistics delays
(Please allocate frequency weightage out of 100, total weightage distributed should
be 100%)
NOTE: For example, on an average an exporter may incur extra cost like increase
administration workload ( 10% of the extra cost), transport costs (30% of extra cost),
affect sales and promotion plans (company’s image)(25% extra cost), inventory
costs (10% of extra cost), account receivable and cash flow (10% of extra cost)
Custom-port costs (15% of extra cost) due to issues and challenges in consolidation,
trucking, documentation, transportation, customs, etc.
Logistics delays related costs
Cost Implication Factors
Increase administration workload and costs
Increase transport costs
Affect sales and promotion plans (Company’s
image)
Inventory costs
Account receivable and cash flow
Custom—port costs (inspection, storage,
clearance, etc.)
282
APPENDIX V
List of proposed training programs
Export Documentation
Training on customs documentation and compliance procedures
Training on commercial documentation and procedures
Training on shipping document and procedures
Training on document on third country transactions
Training on country specific requirement of documentation
Training on buyer specific requirement of documentation
Customs Clearance
Proposed training programs by AEPC on both apparel and textiles
Training on technical knowledge of apparel and textiles
Valuation Policies of apparel product categories
Duty structure and knowledge of advance licensing (import of raw materials)
283
APPENDIX VI
INCOTERMS 2010 Guideline
The International Chamber of Commerce has released the table of contents to the
Incoterms 2010. Incoterms 2010 consists of only 11 Incoterms, a reduction from the
13 Incoterms 2000.
The Incoterms 2010 are organized into two categories:
Incoterms for any Mode or Modes of Transport:
EXW - Ex Works
FCA - Free Carrier
CPT - Carriage Paid To
CIP - Carriage and Insurance Paid
DAT - Delivered At Terminal (new)
DAP - Delivered At Place (new)
DDP - Delivered Duty Paid
Incoterms for Sea and Inland Waterway Transport Only:
FAS - Free Alongside Ship
FOB - Free On Board
CFR - Cost and Freight
CIF - Cost, Insurance and Freight
EXW (Ex Works)
The buyer bears all costs and risks involved in
taking the goods from the seller's premises to the
desired destination. The seller's obligation is to
make the goods available at his premises
(works, factory, warehouse). This term
represents minimum obligation for the seller.
This term can be used across all modes of
transport.
FCA (Free Carrier)
The seller's obligation is to hand over the goods,
cleared for export, into the charge of the carrier
named by the buyer at the named place or point.
If no precise point is indicated by the buyer, the
seller may choose within the place or range
stipulated where the carrier shall take the goods
into his charge. When the seller's assistance is
required in making the contract with the carrier
the seller may act at the buyers risk and expense.
This term can be used across all modes of
transport.
284
CPT (Carriage Paid To)
The seller pays the freight for the carriage of
goods to the named destination. The risk of loss
or damage to the goods occurring after the
delivery has been made to the carrier is
transferred from the seller to the buyer. This
term requires the seller to clear the goods for
export and can be used across all modes of
transport.
CIP (Carriage & insurance Paid to)
The seller has the same obligations as under
CPT but has the responsibility of obtaining
insurance against the buyer's risk of loss or
damage of goods during the carriage. The seller
is required to clear the goods for export however
is only required to obtain insurance on minimum
coverage. This term requires the seller to clear
the goods for export and can be used across all
modes of transport.
DAT (Delivered At Terminal)
New Term - May be used for all transport
modes
Seller delivers when the goods, once unloaded
from the arriving means of transport, are placed
at the disposal of the buyer at a named terminal
at the named port or place of destination.
"Terminal" includes quay, warehouse, container
yard or road, rail or air terminal. Both parties
should agree the terminal and if possible a point
within the terminal at which point the risks will
transfer from the seller to the buyer of the
goods. If it is intended that the seller is to bear
all the costs and responsibilities from the
terminal to another point, DAP or DDP may
apply.
Responsibilities
Seller is responsible for the costs and
risks to bring the goods to the point
specified in the contract
Seller should ensure that their
forwarding contract mirrors the contract
of sale
Seller is responsible for the export
clearance procedures
Importer is responsible to clear the goods
for import, arrange import customs
formalities, and pay import duty
285
If the parties intend the seller to bear the
risks and costs of taking the goods from
the terminal to another place then the
DAP term may apply
DAP (Delivered At Place)
New Term - May be used for all transport
modes
Seller delivers the goods when they are placed at
the disposal of the buyer on the arriving means
of transport ready for unloading at the named
place of destination. Parties are advised to
specify as clearly as possible the point within
the agreed place of destination, because risks
transfer at this point from seller to buyer. If the
seller is responsible for clearing the goods,
paying duties etc., consideration should be given
to using the DDP term.
Responsibilities
Seller bears the responsibility and risks
to deliver the goods to the named place
Seller is advised to obtain contracts of
carriage that match the contract of sale
Seller is required to clear the goods for
export
If the seller incurs unloading costs at
place of destination, unless previously
agreed they are not entitled to recover
any such costs
Importer is responsible for effecting
customs clearance, and paying any
customs duties
DDP (Delivered Duty Paid)
The seller is responsible for delivering the goods
to the named place in the country of
importation, including all costs and risks in
bringing the goods to import destination. This
includes duties, taxes and customs formalities.
This term may be used irrespective of the mode
of transport.
FAS (Free Alongside Ship - named
port of shipment)
The seller must place the goods alongside the
ship at the named port. The seller must clear the
goods for export. Suitable only for maritime
transport but NOT for multimodal sea transport
286
in containers (see Incoterms 2010, ICC
publication 715). This term is typically used for
heavy-lift or bulk cargo.
FOB (Free On Board - named port of
shipment)
The seller must load themselves the goods on
board the vessel nominated by the buyer. Cost
and risk are divided when the goods are actually
on board of the vessel (this rule is new!). The
seller must clear the goods for export. The term
is applicable for maritime and inland waterway
transport only but NOT for multimodal sea
transport in containers (see Incoterms 2010, ICC
publication 715). The buyer must instruct the
seller the details of the vessel and the port where
the goods are to be loaded, and there is no
reference to, or provision for, the use of a carrier
or forwarder. This term has been greatly
misused over the last three decades ever since
Incoterms 1980 explained that FCA should be
used for container shipments.
CFR (Cost and Freight)
The seller must pay the costs and freight
required in bringing the goods to the named port
of destination. The risk of loss or damage is
transferred from seller to buyer when the goods
pass over the ship's rail in the port of shipment.
The seller is required to clear the goods for
export. This term should only be used for sea or
inland waterway transport.
CIF (Cost, Insurance & Freight)
The seller has the same obligations as under
CFR however he is also required to provide
insurance against the buyer's risk of loss or
damage to the goods during transit. The seller is
required to clear the goods for export. This term
should only be used for sea or inland waterway
transport.
Source: http://www.kalgin.net.nz/incoterms.html