SUBMITTED BY
SULABH MAHETA
AMIN PATTANI

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EXECUTIVE SUMMRY
As a partial fulfillment of PGDM all students are required to undergo training for 2 months. With respect to that this we have prepared this project report on “Functional Procedure of Custom Clearance” undertaken at Shakti Forwarders Pvt. Ltd., Gandhidham.
We have selected this topic to know about the custom process. This report also tells about present scenario of Indian shipping and also tells about development in shipping in Gujarat. Another objective is to know Documentation process done by CHA (Clearing House Agent) to clear the goods from CUSTOM.
Our secondary objective is to know the relation between CHA and importer as well as exporter. The report also describes that why shipping line invest their amount to purchase ship and type of ship for transportation of goods.
This report also tells that as that how to calculate the DUTY on import-export goods. We also describe that which Documents are useful for CHA, IMPORTER and EXPORTER.
OBJECTIVE OF THE STUDY
 To know the present scenario in Indian shipping line.
 To know the relation between the CHA and exporter as well as importer.
 To know the documentation process done by the CHA.
 To know the future of Indian shipping.
 1. INTRODUCTION
 1.1 Project:
 In view of the rapidly and constantly changing business environment globally and fast evolving trade and commerce scenario in India vis-à-vis global market, there is increasing requirement of reliable and dependable integrated logistics solutions providers who can provide comprehensive, professional and dependable logistics support to the industry, keeping the same in mind and with the vision to provide quality and professional comprehensive logistics solutions to the international & domestic trade.
 In the development of any country’s economy, exports play a crucial role. Export is the most important aspect of earning foreign exchange. A country should have to be equipped with natural resources, so that it can sell these resources into the international market.
 With the opening up of the Indian economy, the international trade has been increased significantly as there are less restriction on exports and imports.
 More and more multinationals are registering their entry into the Indian market. The imported products are now in well reach of Indian customers. The living standard has been improved. This results in substantial amount of growth in both exports and imports.
 The procedure of both the exports and imports are time consuming and complicated. In this regard there are several logistic companies and custom house agents providing their services on the behalf of the exporters and importers to facilitate the trade between them. These custom house agents and logistics companies take over the responsibility of sending the goods from the exporter’s premises to the importer premises, which also includes the most important aspect of custom clearance.
 Shakti Forwarders Pvt. Ltd. is a leading name for custom clearance. Over the years they have operated smoothly with their wide spectrum of personalized services.
 1.2 Industry:
 Indian shipping scenario:
 India has 12 major ports and 185 minor/intermediate ports. Over 90 percent by volume and 70 percent by value of India’s overseas trade, aggregate of exports and imports, is carried out through maritime transport along its 7617 km long coast line. India has the largest merchant shipping fleet among the developing countries and its merchant shipping fleet ranks 18th in the world, in terms of fleet size. Another silver lining is the average age of the India’s merchant shipping fleet is only 12.7 years as compared to the international average of 17 years .but, India’s share, sadly, constitutes only 1.45% of the world’s cargo carrying capacity.
 As on April 1, 2005, India has a total of 686 ships comprising 8.01 Million Gross Tonnage (GT) and 13.28 Million Dead Weight Tonnage (DWT). The shipping corporation of India (SCI), the country’s largest carrier, owns and manages 82 ships with 2.54 million GT and accounts for 40 percent of national tonnage. India is also among the few countries that offer fair and free competition to all shipping companies for obtaining cargo. There is no cargo reservation policy in India.
 Indian shipping has remained a deferred subject till independence. Only after independence, the development of shipping has attracted the state policy. The subject of shipping, in the beginning, has been dealt with by the ministry of commerce, till 1949 and subsequently, in 1951, it has been shifted to the ministry of transport and shipping. In 1947, the government of India has announced the national policy on shipping, aiming at the total development of the industry. In order to accelerate the developmental efforts, the necessity for a centralized administrative organization has been felt. Accordingly in September necessity for a centralized administrative organization has been felt. Accordingly in September 1949, the directorate general of shipping with its headquarters at Bombay has been established with the objectives of promotion and development of Indian shipping industry.
 Introduction to Gujarat port:
 Along the 1600 kms. of coastline of Gujarat, there are 41 ports, of which Kandla is a major port. Out of remaining 40 ports, 11 are intermediate ports and 29 are minor ports under the control of Gujarat maritime board.
 Gujarat, situated on the western coast of India, is a principal maritime state endowed with favorable strategic port locations. The prominence of Gujarat is by virtue of having nearly 1600 kms long coastline, which accounts for 1/3rd of the coastline of India and being the nearest maritime outlet to Middle East, Africa and Europe.
 In 1991, government of India initiated various economic, trade and industrial reforms, through the policy of liberalization to enhance industrial and trading activities. The rationalization of import duties and stress on export promotion has seen imports increasing by 24% and exports by 25%. Gujarat state is one of those frontline states that can take up the policy of liberalization and privatization announced by the government of India through the process of globalization.
 Gujarat itself is experiencing a phenomenal interest in investments both from mega-industrial sectors within the country and also from top multi-national abroad. Investments to the tune of $30 billion are already in the pipeline. From an analysis of the present investments and those that are flowing in, one can perceive a particular trend which is manifesting itself - investments are converging in and around potential port sites. Investments of over Rs.16,000 crores are taking place at Hazira, Rs.15,000 crores are planned at Varga, Rs.20,000 crores are planned in areas near Pipavav and near Jamnagar port locations. The logic of locating these industries is rather clear, viz. The large business houses want to import industrial raw-materials and want access to the international market through sea routes, which is definitely more viable and feasible as against the surface transport or air transport.
 Export of salt and import of coal are other major potential cargo apart from the existing items of import and export. As indicated earlier, the massive spurt in industrialization also opens up scope for import of industrial raw materials and export of finished goods to the global market through ports. The vast coastline of Gujarat, also offers tremendous potential for marine fisheries and subsequent processing and exports. Over and above this, any development in the hinterland state has a direct impact on Gujarat ports.
 In all over India, Gujarat ports are handling more cargo then other states and by the year by year cargo handling is increasing. From the below data we can find that Kandla port is handling more cargo than all over India