Port Visit Report [20th Sept to 22nd Sept, 2010]

Under the Supervision of Dr.Rajendra Prasad Sharma,IIFT

2010

Naveen Gupta (27)||Praveen Kumar G(31)||Ritika Yadav(35)||

Shilpa Phadke(45)||Utkarsh Pandey(53)||Zia Zafar Mohammad(56)

[Type the company name] 1/1/2010

Chapter 1: Kolkata Port Visit

Introduction to the Kolkata Port

1. Background:

Kolkata Port is the gateway to Eastern India for the rest of the world. This is the first Major Port in

India, whose appearance in the map of the maritime world dates back to the year 1870 and this is

the 137th year of its existence. It is the oldest operating port in India, having originally been

constructed by the British East India Company. In the 19th century Kolkata Port was the premier port

in British India. After independence its importance decreased because of factors including the

Partition of Bengal (1947), reduction in size of the port hinterland and economic stagnation in

eastern India. In the 21st century due to the East Indian economic recovery and infrastructure

improvements, the port grew swiftly to become the nation's third largest container port. It was one

of India's fastest growing ports in 2004-05.

Kolkata Port is the only riverine major port in India, situated 232 kms upstream from the Sandheads.

It has one of the longest navigational channels in the world. In the 87 kms stretch from Sandheads to

Saugor, vessels are guided through Vessel Traffic Management System (VTMS) of the Kolkata Port

Trust. Thereafter, at Saugor, the Pilots embark the vessels for pilotage, from where the distance of

HDC and KDS are 41 kms and 143 kms, respectively. Being a riverine port, its problems and features

are unique and cannot be compared with other Ports of India.

Kolkata Port has two dock systems - Kolkata Dock System at Kolkata with the oil wharves at Baj Baj

and a deep water dock system at Haldia Dock Complex, Haldia for sea borne trade. It has the most

sophisticated port facilities with extensive storage facility for diverse cargo. With a modern

computerised container terminal, Kolkata port offers a very customer friendly approach.

Haldia Dock Complex (HDC), a modern dock complex of Kolkata Port Trust, came into existence in

1977 for handling large vessels, carrying bulk cargo with optimum economy, keeping Kolkata Dock

System (KDS) primarily for handling break bulk cargo, container etc. Two dock systems of Kolkata

Port viz. KDS and HDC are complementary to each other. Kolkata Port has a vast hinterland,

comprising the entire Eastern India including West Bengal, Bihar, UP, MP, Assam, North East Hill

States and the two landlocked neighbouring countries viz. Nepal and Bhutan. The industrial

development, commerce and trade of this vast hinterland are inseparably linked to the life and

development of Kolkata Port and vice-versa.

2. Organisational Structure:

The Chairman is the executive head of the Port Trust and also the Chairman of the Board of

Trustees. He is responsible for the total administration and management of the Port including KDS

and HDC. Dy. Chairman (K) and Dy. Chairman (H) are responsible for the day-to-day management of

the affairs of KDS and HDC, respectively. There are 14 Departments in KDS functioning under the

respective HODs and 10 Divisions in HDC functioning under two General Managers viz. General

Manager (M&S) and General Manager (Operations).

PORT Physical structure:

1. Connectivity:

Kolkata Port is well connected with national and state highways, railways and national waterways.

KDS is connected with NH-6, NH-2 and NH-34 through city roads. NH-41 connects Haldia with NH-6

and rest of the country. KDS is connected to Eastern Railway through Sealdah and Budge Sections.

HDC is connected to the South Eastern Railway via Panskura. Kolkata Port is connected to National

Waterway No.1 (Ganga), National Waterway No.2 (Brahmaputra) and Waterways through

Sundarban.

2. Dock Systems at Kolkata Port:

The Kolkata Port Trust manages two separate dock agglomerations - the Kolkata Dock System (KDS)

and the Haldia Dock Complex (HDC).

a. Kolkata Dock System (KDS): It is situated on the left bank of the Hooghly River at 22° 32' 53" N,

88° 18' 5" E — about 203 km (126 miles) upstream from the sea. The pilotage station is at

Gasper/ Saugor roads, 145 Kilometres to the south of the KDS (around 58 km from the sea). The

system consists of:

Kidderpore Docks (K.P. Docks) : 18 Berths, 6 Buoys / Moorings and 3 Dry Docks

Netaji Subhas Docks (N.S. Docks): 10 Berths, 2 Buoys / Moorings and 2 Dry Docks

Budge Budge River Moorings : 6 Petroleum Wharves

Anchorages: Diamond Harbour — 1. Saugor Road 2. Sandheads

Apart from this, there are around 80 major riverine jetties, and many minor jetties, and a large

number of ship breaking berths.

b. Haldia dock complex (HDC): It is situated at 22°02' N, 88°06 E — 60 kilometres away from the

pilotage station. The complex consists of:

Impounded Dock. System with 12 Berths

3 Oil Jetties in the River

3 Barge Jetties in the River for handling Oil carried by Barges.

Haldia Anchorage for LASH vessels

All the docks are impounded dock systems with locks from river.

3. Pilotage:

Due to the constraints of the river (like silting, sandbars etc) no sea-going vessel above 200 GRT is

allowed to navigate without a qualified pilot of the Kolkata Port Trust. The total pilotage distance to

KDS is 221 km (comprising 148 km in river and 75 km in sea) and for HDC is 121 km (comprising

46 km in river and 75 km in sea).

The pilot vessel station is maintained at Sagar Roads. The River Pilot embarks on inbound ships at

Middleton Point. Its responsibility is up to Garden Reach (Kolkata). On reaching Garden Reach, the

river pilot is relieved by a Harbour Pilot who takes the vessel inside the lock at KPD or NSD under the

supervision of ASST. DOCK MASTER. Then a BERTHING MASTER goes on board to relive the H.P and

pilotage the vessel up to the scheduled berth KPD / NSD. Under the control of a berthing master the

inward / outward vessel passes through D.E.S.B /D.L.S.B., which is 80 feet narrow only.

OPERATIONS

1. Container Handling at Port

Kolkata Port was the first in the country to develop modern container handling facilities in order to

keep pace with the global technological advancement in the field of transportation. A container

terminal, with quay crane and rail mounted gantry crane, tractor/trailer combination and a

Container Freight Station, was licensed at HDC in 1977.

Containers are handled at Haldia using the ship's gear operated by port workers. Movement

between the quay and the container packing yard is carried out through Port-owned tractor/trailers

and/or by private operators appointed by shipping companies or their agents. Handling at parking

yard is done by port transfer crane or private equipment. HDC presently handles around 7 % of total

container throughput of Kolkata Port and rest is handled at Kolkata Dock System.

The major share (about 95%) of container traffic flowing

through Kolkata Dock System (KDS) is carried by feeder

ships with either Colombo, or Singapore, as the

connecting relay port, and the rest are covered by

Combi-ships, Entire container traffic in Kolkata is

presently handled by gear of the ships, moved to and

from the stacking yard and stacked/unstacked at the

container yard by equipment of various agencies.

Since the commissioning of the port run container terminal at 7 NSD on 18th February, 1992, around

33 percent of the traffic is handled at the terminal and rest 67% at other berths of NSD & KPD where

yard operation is done by private operators. Another terminal berth at 8 NSD, contiguous of 7 NSD,

has been constructed.

The reputed container operators, at Kolkata Port are American President Line, Shipping Corporation

of India, Hapag Llyod, Everett, Gold Star, Nedlloyd, Ceylon Shipping Corporation, Maersk, Mitsui

O.S.K., Yanming, United Arab Shipping, P&O Containers Ltd., Evergreen Marine Corporation,

Neptune Orient Line, Mediterranean Shipping Corporation, Kawasaki Kisen Kaisha Ltd., NYK Lines,

Veb Deutfracht Seereedere Rostok, Fil Container Services, Compagnie Maritime Affreightment,

Seven Star Lines, Frata Container Lines, Llyod Triestino di Navigation, Compagnie General Maritime,

Hanjin, Choyang, Hu undai, Ben Line, Neptune Orient, NSCSA, Euroasia, Samuderi Indonesia,

Mynmar Lines Nor Asia, Cho Yang, Han Jin, Hyundai etc.

Vessel operators at Kolkata include American President Lines, Bengal Tiger Lines, Sea Consortium,

Meng Horne Shipping &aamp Myanmar Lines. Kolkata/Haldia is presently linked with Inland

Container Depots at Amingaon (Guwahati), Tughlakabad, Ludhiana, Wadi Bundar (Mumbai),

Baleswar etc. ISO containers are also being moved by CONCOR from Kolkata to non ICD destinations

at Raxaul, Ongul. Terminal at Kolkata can handle one full rake at a time.Container Corporation of

India is considering developing CFS at Cuttack, Durgapur, Ghaziabad, Jamshedpur, Ranchi and Patna.

All these places have got linkage with Kolkata/Haldia.

Principal commodities being carried in containers include tea, jute and jute products, cast iron

goods, mica, leather products, cotton products, iron & steel, machinery, shellac, tobacco, carpet

materials, glass sheets and reefer cargo, aluminium ingot, carpet chemicals etc. Meanwhile, customs

approved public CFS-S a/c Central Warehousing Corporation and Balmer Lawries have started

operation. Few other private CFS-S (Eight in no.) are engaged in export operation.

2. Existing Container Terminal Facilities at Kolkata Dock System

A modern Container Terminal has been built at 7 Netaji

Subhas Dock at a cost of Rs. 24.37 crores. The annual

throughput of the container terminal is 75,000 TEUs. The

stacking area is 50,000 sq. m. along with a CFS measuring

9,000 sq.meters to 50,000 square meters parking yard of

the terminal has 1284 ground slots with 3.5 stack high.The

container park and adjourning facilities are served by modern container handling equipment,

including 3 rubber-tyred gantry cranes, 17 heavy duty tractors, 14 trailors of 40 ft length & 6 trailors

of 20 inch length and reefer facilities which provide ground slot of 48 TEUs. The Terminal has a

dedicated on-line computer system equipped with 2 medium duty (8 T.) forklift trucks & 2 (35 T) top-

lift trucks.

3. List of Container Handling Facilities at KoDS

Kolkata Dock System

Item *8

NSD 7 NSD

** 4

NSD 5 NSD 3 KPD 6 KPD

Quay length (m) 225 192 183 128 118

Apron width (m) 15.72 12.3 12.3 12.3 18.29 15.24

Depth along berth (m) 8 7.8 7.6 6.5 6.5 7.6

Open area of berth in sq.

Metre 50,000 15,000 3,300 8,800

Covered Storage area in sq.

Metre 9,000 6,000 - 3,345

Maximum size of Ship to be

accomodated 565' X 80' 565' X 80' 515' X 70' 515' X 70'

Ground Slot Capacity 1284+

48 Reefer 1200 300 800

Location C.F.S 7 NSD 4 NSD 1 KPD 6 KPD

Storage Capacity 1284 X 3.5 2200 600 1600

No of Reefer Points (Can be

extended if required) 48 X 3 16 3

Stuffing/Destuffing done by KoPT/CDLB KoPT/Steve

dores

KoPT/Steve

dores

KoPT/Steve

dores

* Contiguous to 7 NSD with common book-up & CFS facilities

** Other facilities are common with those of 5 NSD

4. Development Plans for Kolkata Dock System

a. Development of additional stacking area in the terminal thereby creating additional ground

slots has been planned. The area earmarked is old D NSD shed, eastern side of 8 NSD berth

and east of CFS.

b. Procurement of additional container handling equipment has been planned.

5. List of Container Handling Facilities at HDC

Quay length (m) Apron Width (m) Depth (m)

Berth No. 9 220 37 13.7

Berth No. 10 220 37 11.5

Berth No. 11 260 37 11.5

Covered Storage Area 9,300 sq. m. (Behind Berth No 9)

Open Storage Area 10,000 sq. m. (Behind Berth No 10)

11,000 sq. m. (Behind Berth No. 11)

Ground Slot Capacity of

Container Parking yard 1600 TEUs

Equipments 30 tonnes Transtainer Crane (RMG) / Fork-lifts / Tractor-trailers /

Top-lift trucks / Reach-stacker

No of Reefer Points 12 (can be extended if required)

Maximum size of ship to be

accommodated

3or more vessel can be berthed simultaneouosly along the

continuous Quay face of Berth No. 9, 10 and 11 (646 m)

Stuffing/Destuffing Done by Port labour

6. Crisis unfolding at Kolkata Port due to Sand bars:

Silt deposits at the mouth of the Hooghly River have rendered Haldia port nearly unnavigable, raising

fears that India’s second largest container port might soon be shut down. The formation of sandbars,

largely due to inadequate dredging, has raised the riverbed, making the shipping channel shallow. At

two locations in the channel the depth is less than the minimum required for loaded cargo ships to

navigate their way to the port in West Bengal from the Bay of Bengal. The ideal navigable depths at

these two locations, named after sandbars Jellingham and Auckland, are 6.1 metres and 6.3 m

respectively at zero tide, the average low-tide height there. A Kolkata Port Trust survey found that

the depths at the two locations had decreased to 3.9 m and 4.3 m respectively. With this the

approach to the port from the south is in danger of getting blocked. The approach from the north

was blocked in 1986 due to the formation of sandbars or shoaling.

7. Actions taken by the Port to curtail the threat:

Maintenance dredging is now being carried out in the estuary of the river to provide better draft for

Haldia, 104 km downstream where the deep-water dock system of Kolkata Port is situated. In

addition, capital dredging has been undertaken in the Indian Government's 9th plan for an

estimated expenditure of Rs. 235 crore (US $ 48 million). It comprises "river training" measures,

construction of a southern guide wall, silt trapping and river protection work, including shore

disposal, along with construction of a 2.8 km long guide wall cross-spur at the northern end of

Nayachar Island.

The measures envisage a draft increase of one metre upon completion. With the commissioning of

the Farakka barrage, the bars of the upper reaches 75 kms from Kolkata Port to Diamond Harbour

downstream have stabilised considerably. The problem has now shifted to the channel from

Diamond Harbour to Sandhead 157 km downstream.

Dredging alone cannot be the solution. The port authorities have taken up a massive afforestation

project at Nayachar Island in the downstream and the Haldia River bend. Around 200 hectares have

been brought under the project, in which different types of mangrove, associated species and salt-

resistant varieties are grown. Afforestation, along with environmental upgradation, help check soil

erosion. The port authorities now claim that the draft had increased to above 7m on 157 days in

2001-2002 against 104 days in 2000-2002 at Kolkata dock system and above 8m for 280 days at

Haldia in 2001-2002 as against 246 days the previous year.

Other Modernisation Initiatives:

Kolkata Port has taken up various steps in the recently concluded 10th Five Year Plan and the

ongoing 11th Five Year Plan aiming to reduce waiting of ships inside or outside the Ports. An

ambitious investment programme of Rs.968.67 crores projected in the 11th Five Year Plan (KDS –

Rs.268.69 crores, HDC – Rs.278.93 crores, River Regulatory Works Rs.421.05 crores) including

modernisation, renovation and replacement is currently underway at Kolkata Port, encompassing,

inter-alia, construction of Multipurpose Berths with improvement of back-end facilities; integrated

development of infrastructure facilities including road / rail connectivity; induction of state-of-the-

art equipment, such as Mobile Harbour Cranes, Rail Mounted Quay Cranes, Reach Stackers, Rubber-

Tyred Gantry Cranes, Tractor-Trailers, etc., upgradation of VTMS, procurement of Survey-cum-

Pilotage Craft; River Regulatory Measures for improvement of draft at Hooghly estuary,

modernization of computer facilities, EDI etc. Kolkata Port Trust also plans to develop two state-of-

the-art IWT terminals – one each at Kolkata and Haldia – jointly with IWAI as partner.

Berths, Civic Infrastructure and Deepening of Channel:

In the impounded Dock System at Haldia, two additional berths – Berth no. 2 and Berth no.

13, at a cost of Rs.86.36 crores, are being constructed, which are expected to be completed

by November 2007 and May 2008, respectively. Berth No. 2 at HDC has already been

commissioned on 18.6.07. Besides, action has already been initiated for construction of two

riverine jetties at Haldia at an estimated cost of Rs. 150 crores.

Order placed for improvement of infrastructural facilities at KDS, at a cost of Rs.16.9 crores

viz. development of berths, yards, sheds etc. and development of roads including parking

facility. The scheme is expected to be completed by March 2008.

Another scheme relating to infrastructure facilities inside and outside dock systems (Phase-

II) at KDS including revamping workshop facilities has been sanctioned by the Board of

Trustees at a cost of Rs. 27.4 crores.

Development of road infrastructure including drainage, etc. inside and outside docks at HDC,

at a cost of Rs.30 crores, is in advanced stage of completion. The scheme is expected to be

completed by December 2007.

Improvement of back up area with railway connectivity inside the dock at HDC, at a cost of

Rs.25 crores, is in advanced stage of completion. The scheme is expected to be completed

by Dec’07.

River Regulatory Measures for Improvement of Draft at Hooghly Estuary, at an estimated

cost of Rs.421.06 crores, (to be funded through grant from Govt. of India) has been taken up.

The scheme is awaiting PIB / CCEA clearance. PIB memo has been circulated by the Ministry.

In order to avail of higher draft in the navigable channel, construction of three riverine

jetties at Diamond Harbour at an estimated cost of Rs.360 crores has been initiated. A

Techno-Economic Feasibility Study has been completed. The same has been accepted by the

KoPT Board and proposal for in principle approval of the scheme by Public Private

Participation Appraisal Committee (PPPAC) has already been forwarded to Ministry.

Offers have been received regarding the Expression of Interest (EOI) invited for transloading

of dry bulk cargo at Sandheads / Konica Sand Anchorage. A Working Group has been formed

by Ministry of Shipping, Road Transport and Highways to examine the territorial issues.

Lock Gate :

Lock gate is the gate which connects the navigable river channel and the pork dock waters. Lock

gates are generally used to bring in large ships in to the port where the draft is normally low. It is a

mechanism of adjusting/maintaining the port draft separating it from the river draft.

1. Types of Lock Gates:

Images from left to right: Flap Gate – Propped, Floating Caisson Gate, Sliding Gate, Intermediate

Gate – Lambda

Flap gates are supported by hinges to the entrance sill of a dock or basin and are opened by

lowering them down into the water so they lie on the seabed below the sill. Flap gates are usually

provided with buoyancy tanks to minimise the operating load on the winches or hydraulic rams. This

type of gate can be used to maintain water levels in a wet dock during low tide. Larger gates are

usually installed in modern ship repair docks where speed of operation is important. Flap gates can

be designed to either span an entrance (up to around 80m) or are cantilevered or propped off the

sill.

Floating caisson gates are one of the most common forms of dock gate. Because they have to be

pumped out, floated and manoeuvred, they are not generally considered for modern ship repair

docks, but used mainly for shipbuilding dock entrances where the time to open and close the gate is

not critical. We have developed the inverted ‘T’ shaped floating gate design especially for very wide

shipbuilding docks. As a gravity-stabilised gate, there is no limit to entrance width it can be designed

for. The widest at present is 131m. The unique feature of this gate is that it can be fully maintained

while in service.

Intermediate gates are used in large dry docks to subdivide the dock into two sections. Generally the

gates comprise either inverted ‘Y’ or Lambda shaped modular steel units which are erected ‘in the

dry’ at fixed locations on the dock floor.

Sliding and rolling caisson gates are generally used for large ship locks and are opened by

withdrawing them into a chamber on one side of the lock entrance. The caisson is lightly ballasted so

it can be slid or rolled on a track to and from its closed position across the entrance. These caissons

are usually moved using winches with continuous chains or wire ropes.

Sector gates are usually installed in small locks often at an entrance to a marina. They are installed in

pairs or as a single gate and actuated by hydraulic rams which rotate them on a vertical axis. Their

two main advantages are that they can be operated when there is a water head differential across,

so they can be used for sluicing, and resist a water head on either side and hence protect against

high tides and storm surges.

Mitre gates are one of the oldest types of gate, used as impounding gates in ports and dry dock

entrance gates. They are used particularly in small canal locks, where they are only required to resist

water pressure from one direction. Historically constructed in timber, larger modern examples are

fabricated in steel. A particularly economic form of gate design, they are arranged in pairs and hinge

on vertical axis.

DRAFT

The draft of a ship's hull is the vertical distance between the waterline and the bottom of

the hull (keel), with the thickness of the hull included; in the case of not being included the draft

outline would be obtained. Draft determines the minimum depth of water a ship or boat can safely

navigate. The draft can also be used to determine the weight of the cargo on board by calculating

the total displacement of water and then using Archimedes' principle. A table made by the shipyard

shows the water displacement for each draft. The density of the water (salt or fresh) and the content

of the ship's bunkers has to be taken into account.

Parameters K.P. Docks -I K.P. Docks –II N.S. Docks H.D.C.

Designed Draft 40 feet 40 feet 40 feet 8 m.

Quay Length 2700 feet 4500 feet 4200 feet

Dock Width 600 feet 400 feet

Equipment and Craft Profile:

Two Mobile Harbour Cranes along with nine Reach Stackers have been installed at Kolkata

Dock System on Own-Operate-Maintain basis, for improvement of productivity of

containers.

Two Rail Mounted Quay Cranes (RMQC) for Container handling, at a cost of Rs.50 crores,

have been commissioned at Haldia Dock Complex recently.

A Stand Alone Vessel Traffic Management System (VTMS) along with Automatic

Identification System (AIS) was installed in March 2005 at a cost of Rs.6 crores (approx).

Upgradation / replacement of three Radar Stations with replacement / renovation of

infrastructure facilities including installation / commissioning of AIS at Frasergunj and Haldia

have also been completed in August 2006.

Five Rubber Tyred Gantry (RTG) Cranes at Kolkata Port (KDS-1, HDC-4) have been inducted

recently at a cost of Rs.27.5 crores.

Additional equipment fleet viz. RTG Cranes, Reach Stackers (two already delivered),

Hydraulic Cranes, Tractor-Trailer combination etc. are being procured at KDS at a cost of

Rs.32 crores.

Chapter 2: Guest Lectures

Export-Import Documentation & their processing etc. by Mr. Subrata

Mukherjee, Supdtt. of Customs.

Export-Import Process

1. Bill of Entry – Cargo Declaration

2. If the goods are cleared through the EDI system no formal Bill of Entry is filed as it is

generated in the computer system, but the importer is required to file a cargo declaration

having prescribed particulars required for processing of the entry for customs clearance.

3. The Bill of entry, where filed, is to be submitted in a set, different copies meant for different

purposes and also given different colour scheme, and on the body of the bill of entry the

purpose for which it will be used is generally mentioned in the non-EDI declaration.

4. In the non-EDI system alongwith the bill of entry filed by the importer or his representative,

a lot of other documents are also generally required.

5. Stages for processing a bill of entry

6. Assessment of duty essentially involves proper classification of the goods imported in the

customs tariff having due regard to the rules of interpretations, chapter and sections notes

etc., and determining the duty liability.

7. The assessing officer processes the cargo declaration on screen with regard to all the

parameters as given above for manual process. However in EDI system, all the calculations

are done by the system itself. In addition, the system also supplies useful information for

calculation of duty, for example, when a particular exemption notification is accepted, the

system itself gives the extent of exemption under that notification and calculates the duty

accordingly. Similarly, it automatically applies relevant rate of exchange in force while

calculating. Thus no comptist is required in EDI system. If assessing officer needs any

clarification from the importer, he may raise a query. The query is printed at the service

centre and the party replies to the query through the service centre.

8. Green Channel: Some major importers have been given the green channel clearance facility.

It means clearance of goods is done without routine examination of the goods. They have to

make a declaration in the declaration form at the time of filing of bill of entry. The

appraisement is done as per normal procedure except that there would be no physical

examination of the goods. Only marks and number are to be checked in such cases.

However, in rare cases, if there are specific doubts regarding description or quantity of the

goods, physical examination may be ordered by the senior officers/investigation wing like

SIB.

9. Execution of Bonds: Wherever necessary, for availing duty free assessment or concessional

assessment under different schemes and notifications, execution of end use bonds with

Bank Guarantee or other surety is required to be furnished. These have to be executed in

prescribed forms before the assessing Appraiser.

10. Amendment of Bill of Entry: Whenever mistakes are noticed after submission of documents,

amendments of entry is carried out with the approval of Deputy/Assistant Commissioner.

The request for amendment may be submitted with the supporting documents. For

example, if the amendment of container number is required, a letter from shipping agent is

required. Amendment in document may be permitted even after the goods have been given

out of charge i.e. goods which have been cleared, on sufficient proof being shown to the

Deputy/Assistant Commissioner.

11. Export Promotion Capital Goods Scheme (EPCG): According to this scheme, a domestic

manufacturer can import machinery and plant without paying Customs duty or settling at a

concessional rate of Customs duty. Suppose the Importer avails 5% concessional rate of

Customs Duty then his export obligation may be six times exports of CIF value of the

machinery.

12. Manufacture under Bond: This scheme furnishes a bond with the manufacturer of adequate

amount to undertake the export of his production. Against this the manufacturer is allowed

to import goods without paying any customs duty, even if he obtains it from the domestic

market without excise duty. The production is made under the supervision of customs or

excise authority.

CAPEXIL: Export promotion efforts by trade promotion councils: A case study by

Mr. Mr. Tapan Chattopadhyay.

CAPEXIL, a non-profit making organization, was setup in March 1958 by the Ministry of Commerce,

Government of India to promote export of Chemical and Allied Products from India. And since then

has been the voice of Indian business community. With the headquarters at Kolkata, and regional

offices at New Delhi, Mumbai, Kolkata and Chennai, CAPEXIL has more than 3500 members across

the country. One of the fascinating aspects of CAPEXIL is the overwhelming variety of products it

deals with. CAPEXIL is an ardent advocate of exporters to the Government and the primary focus is

to provide export assistance to its member exporters. CAPEXIL sends trade delegation to all major

and developing markets around the world, showcases Indian exports all over the world through

exhibitions, fairs. Capexil can help the sourcing needs of an importer anywhere in the world, and

also the selling needs of Indian exporters.

Promotional Activities:

CAPEXIL in its continuous endeavour to promote the business activities of its members, undertake

the following activities throughout the year:

Participates in general and product specific international trade fairs

● Organizes Buyer Seller Meets and Trade Delegations abroad

● Organizes buyer contact programmes in India popularly termed as Reverse buyer Seller Meets

● Awareness Programmes, Seminars and other activities in India to build awareness and to boost

entrepreneurs in the area of exports

● Acts as a forum for representation of the trade related issues and acts as a liaison between the

exporting community and the government, policy planners, quasi government organizations

● Liaisons with Indian Diplomatic Missions abroad and Foreign Diplomatic Missions in India for

promotion of business events and other activities

● Facilitates short term training courses on International Marketing

Products

1. Animal By Products

2. Auto Tyres and Tubes

3. Books, Publications and Printing

4. Bulk Minerals and Ores

5. Cement and Clinkers

6. Ceramics and Refractory’s

7. Glass and Glassware

8. Granite, Marble, Natural Stones and Products

9. Graphite and Explosives

10. Miscellaneous Products

11. Ossein and Gelatine

12. Paints and Allied Products

13. Paper and Products

14. Plywood and Products

15. Processed Minerals

16. Rubber Manufactured Products

Services Offered

1. Indispensable information gateway and helping hand for exporters.

2. An interface between the government and the members regarding trade and policy related

matters such as DEPB, Duty Drawback, Banking etc.

3. Organizing Buyer Contact Programmes

4. Participation in National and International Trade Fairs and Exhibitions

5. Financial Assistance to members through Market Development Assistance (MDA) Scheme

and Market Access Initiative (MAI) Scheme for participation in international exhibitions,

buyer-seller meets

6. Organizing export awareness programmes, seminars and workshops

7. Excellent liaison with government and quasi government agencies including Indian

diplomatic missions abroad

8. Dissemination of trade contacts and enquiries

EDI

Electronic data interchange (EDI) is the inter-organisational exchange of business documents in

structured, machine processable form. Electronic data Interchange can be used to electronically

transmit documents such as purchase orders, invoices, shipping bills, receiving advices and other

standard business correspondence between trading partners. EDI can also be used to transmit

financial information and payments in electronic form. Payments carried out over EDI are usually

referred to as Electro- nic Funds Transfer (EFT).EDI should not be viewed as simply a way of replacing

paper documents and traditional methods of transmission such as mail, phone or in-person delivery

with electronic transmission. But it should be seen not as an "end" but as a means to streamline

procedures and improving efficiency and productivity.

Computers have speeded up the production of invoices, purchase orders, receiving tickets and the

like. When these documents are produced by high speed printers, however, they still must be

bursted, inserted and distributed (usually mailed) and copies must be filed by the originating

organisation. The originals must be physically transported to the addressee, opened, carried to the

appropriate individual within the addressee organization and processed, which actually means

manually keying the data into an MIS system.

In EDI, in the place of traditional methods for the transmission of for e.g. a purchase order between

a buyer and a seller, data is entered into the buyer's computer system, the same data is electro-

nically sent into the seller's computer without the need for rekeying or re-entry. This is normally

referred to as application -to-application EDI. When EDI is fully integrated with application programs,

not only does data flow electronically between trading partners without the need for rekeying, but

data also flows electronically between internal applications of each of the trading partners.

Chapter 3: Manikanchan SEZ Visit

SEZ can be defined as “Specifically delineated duty-free enclave and shall be deemed to be foreign

territory for the purposes of trade operations and duties and tariffs.”

History of SEZ in India

Export promoting zones were first set up in India. The first such EPZ was set up in Kandla in 1965

followed by SEEPZ in 1972. Based on reviews of working, such initiatives were further taken in

Cochin, Falta, Madras (Chennai) and NOIDA in 1984 and Vizag in 1989. These EPZ were of very small

size which was a major problem with SEZ policies in India at that time. The size of these EPZ’s is given

as below.

Other problems which prevailed at that time were.

a. Inadequate Infrastructure

b. Restrictive policies

c. Lengthy procedures- NO single window

d. Location disadvantages.

e. Stringent labour laws

Formats in SEZ

1. SEZ for specific sector

a. Minimum size required is 100 Hectares

b. Contiguous area is required.

c. Minimum size of processing area should be 50 percent.

2. SEZ in port/airport

Location State Size (Sq Miles)

Kandla Gujarat 1.17

SEEPZ Mumbai 0.15

Cochin Kerela 0.16

Surat Gujarat N.A

Noida UP 0.48

Chennai TN 0.41

Vizag AP 0.56

Falta WB 0.44

a. Minimum size required is 100 Hectares

b. Contiguous area is required.

c. Minimum size of processing area should be 50 percent.

3. SEZ in specific sectors in specific states

a. Minimum size required is 100 Hectares

b. Contiguous area is required.

c. Minimum size of processing area should be 50 percent.

4. SEZ for IT, Biotech, Non conventional Energy or Gems or Jewellery

a. Minimum size is 10 Hectares

b. Contiguous area is required.

c. Minimum size of processing area should be 50 percent.

d. Minimum built up space (for IT SEZ) should be 100,000 sq.m.

5. SEZ for free trade and warehousing

a. Minimum size required is 40 Hectares.

b. Contiguous area is required.

c. Minimum built up space (for IT SEZ) should be 100,000 sq.m.

d. May be set up as a part of an SEZ for multi products.

e. May be set up as a part of an SEZ for specific sector, with an area not exceeding Zone

area.

6. International Financial Services centre.

a. GOI may approve the setting up of 1 IFSC in each SEZ.

b. Regulations to be framed by RBI, SEBI, IRDA and other relevant agencies.

Manikanchan SEZ:

Salient points

Manikanchan SEZ is a unique project of the state of West Bengal which serves to tap the immense

growth potential of the Gem and Jewellery industry of West Bengal. The government of West Bengal

has drawn plans to commercially exploit this industry and increase its reserve of foreign exchange.

The idea of the establishment of special economic zones was initiated by the central government of

India while re-examining the export-import policy of 1997-2000.

The term special economic zone incorporates the establishment of an duty-free enclave and the

enclave will be not be considered as an Indian territory and therefore, will have its individual tariffs

rules and the trading operations followed in the special economic zone is also different for example,

any commodity purchased from the Special economic zone is considered as an import in the

Domestic Tariff Area (DTA) and vice versa.

The special economic zone are created for a several purposes such as:

Process Assembling

Manufacture of Silver Jewellery

Repair Works

Rendering of Services

Manufacture of Platinum Jewellery

Remaking Work

Trading Activities

Recondition Processes

Manufacture of Gold Jewellery

The first step towards accomplishment of the Manikanchan SEZ project is the development of the

Gem and Jewellery Park at Salt Lake City in the state of West Bengal. The park is situated at a

strategic location near the International Airport in the city of Kolkata. The projects resulted out of

the collaboration between the government of West Bengal and the Commerce and Industries

department. The responsibility to develop the project has been accorded to the West Bengal

Industrial Development Corporation Limited (WBIDC). The project has received the “in principle”

approval of the central government of India. The Manikanchan SEZ policy framed by the West Bengal

government serves to provide fiscal as well as non-fiscal benefits to give the project an edge in the

international gem and jewellery market.

However, the percentage of tax exemption after the completion of total 7 years will be decided as

per the section 10 A of the Income Tax Act. The special economic zones have the facility to

subcontract the entire manufacturing procedure or apart thereof with the aid of a a number of

zones such as export oriented units, electronic hardware technology park scheme, software

technology park scheme, etc. However, for this purpose they need the prior approval of the Custom

authorities. The zones are facilitated with the opportunity to recover the amount of central sales tax

payment made through the purchase of commodities.

They are allowed to shift their job work to foreign countries and are also allowed to carry on export

trade from that country. The special economic zones are exempted from the payment of customs

duty on the goods received from foreign countries. The category of such exemption is applicable to

spares parts, capital goods and so on. The special economic zones are in a position to take the help

of off-shore banking units for International finance and at international rates. There is special

provision for capital goods that have been imported from outside will be liquidated gradually for a

time span of 10 years. The main advantage of the special economic zones is that they are permitted

to market the gems and jewelleries in exhibitions and can establish outlets in foreign countries to

market the jewelleries and can also approach duty free shops for marketing purpose.

Process of a SEZ approval

END OF REPORT