A

PROJECT REPORT
ON
WORKINGS OF SHIPPING AGENT
AT
KOTAK LOGISTICS

SUBMITTED
BY
ANJUM M. GHANCHI
B.K. SCHOOL OF BUSINESS MANAGEMENT
MBA(MMS)-2011-13
SEMESTER-3
ROLL NO-31107
ON 25TH OCTOBER,2012
CONTENT PAGE NO.

1. AKNOWLEDGEMENT 3
2. PREFACE 4
3. COMPANY PROFILE 5
4. IMPORTANT ABBREVIATIONS RELATED TO SHIPPING AGENCY 11
5. IMPORTANT TERMINOLOGIES 13
6. STAKEHOLDERS INVOLVED IN PORT PROCES 18
7. INFORMATION ABOUT SHIPPING AGENT 19
8. INVOLVEMENT OF SHIPPING AGENT IN IMPORT EXPORT CYCLE 21

1 IMPORT CYCLE 22
2 EXPORT CYCLE 25
3 DETAIL INFORMATION 30
4 SCOPE OF SHIPPING AGENT 32

9. CERTIFICATES REQUIRED IN THE PROCEDURE 34

10. ISSUING AUTHORITY OF DOCUMENTS 36
11. CUSTOM CLEARANCE DOCUMENTS OF BULK CARGO 38
12. DUES AND CHHARGES 39
13. OVERVIEW OF CURRENT COMMUNICATION SYSTEM 41
14. PROBLEM WITH CURRENT SYSTEM 43
15. SUGGESTION FOR PROBLEM 46
16. BIBLIOGRAPHY 48

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 ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the possibility to
complete this Project Report. I owe a great many thanks to a great many people
who helped and supported me during the Summer Internship.

I express my thanks to the Principal of, B.K. School of Business Management, for
extending her support. I would also thank my Institution and my faculty members
without whom this project would have been a distant reality.

My deep sense of gratitude to Ms. Purvi Kotak, Sole Proprietor, KOTAK LOGISTICS
and Mr.Viraj Mehta, Tuscan Shipping for their support and guidance. Thanks and
appreciation to the helpful people at KOTAK LOGISTICS for their support.

My deepest thanks to Mr. Hasib sheikh, Manager of KOTAK LOGISTICS, the Guide
of the project for guiding and correcting various documents of mine with attention
and care. He has taken pain to go through the project and make necessary
correction as and when needed.

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 PREFACE

The reason behind writing this report and choosing this subject is to give the
student some knowledge about the stakeholders involved in the Maritime
transportation and Logistics chain.

This report specifically focuses on the SHIPPING AGENT(KOTAK LOGISTICS) and

there workings which are very much important to complete the logistics chain. It
will give brief information about the works of a shipping agent in the Import –
Export process.

Also there is some essence of information about PCS(Port Community System)

which was introduced in the year of 2005 but still have a long way to be used on
regular basis at some major and minor ports. At the ports of Gujarat, Mundra
(Adani) Port, it has been installed recently.

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INFORMATION ABOUT THE
COMPANY
KOTAK LOGISTICS

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 COMPANY’S PROFILE
 Name Of The Company:-

KOTAK LOGISTICS

 Basic services:-
o Shipping
o Clearing
o Forwarding
o Cargo handling

 Registered address of the Company:-

Office: 2 & 3,second Floor, Metro Commercial Centre,

Old High Court Lane, Income tax, Ashram Road,

Ahmedabad-380 009, Gujarat, India.

Tel: +91-79-4007 0704

Fax: +91-79-4007 0704

E-mail: kotak.logistics@yahoo.com

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 PROFILE

Kotak logistics ltd was started in September 2009 to cater to the growing
needs of the industry for Total Logistics Solution by Ms. Purvi Kotak (MBA in
Port Management and MBA in Finance). After working for various
organizations and gaining experience in the fields of Freight Forwarding,
stevedoring, Port Operations for 10 years, it was my calling and burning
desire to start up on my own and thus the Birth of Kotak logistics.

Starting in 2009 from a small table space in Mumbai and then shifting to
Ahmedabad with a assistant, the company has grown over the last 3 years
into having its own setup in Ahmedabad (Corporate), Bharuch - Dahej,
Mundra, Kandla and associations in Maharashtra, Karnataka.

Today we have a staff of 10 people spread over the Gujarat region with 5
people in the Head office. Today we cater to clientele base of over 50 clients
across the states of the west coast of India.

We have setup total logistics solution for Glass manufacturing industry in

Gujarat right from sourcing the cargo overseas to door step delivery for
them. We oversee all steps of port operations right from Agency for the
vessels, stevedoring supervision and dispatches for the clients, connecting
the final leg with transportation to their doorstep.

The obvious next step in total logistics was to source ships for carriage of
these bulk cargoes for our clients, which again we now have a setup of
Brokers and Suppliers for both ships and cargoes from overseas.

During these 3 years, we have also diversified into freight forwarding for Air
and Sea cargoes. Also adding clearance of SAD files for clients.

Kotak Logistics is here to stay and grow with the industry and assist our
clients in all their needs with a dedicated team.

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 ANYWHERE ANY TIME LOOK FOR KOTAK LOGISTICS TO BRING YOUR
CARGO HOME.

 MISSION OF THE COMPANY

We, at Kotak Logistics,are well equipped to provide you “COST EFFECTIVE

TOTAL LOGISTICS SOLUTIONS” & have enough experience in Cargo Handling
and Total Supply Chain Management to provide perfect service.

 Associates at:-

Kandla Vishakhapattnam

Mundra Krishnapattnam

Pipavav Baroda

Mumbai Rajkot

Delhi Morbi

Chennai Jaipur

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 SERVICES PROVIDED BY COMPANY

o Containerized Cargo Handling(Export as well as Import)

 Freight Forwarding
Provides competitive Freight rates for Worldwide destinations. Ex-
work, FOB, DDU & DDP shipments are also accepted.

 Custom Clearance
Assurance of our prompt and reliable services for Custom
Clearance of your import and export shipments at Kandla,
Mundra, Pipavav, JNPT as well as ICD Ahmedabad & ICD
Dashrath.

 Transportation
Provides Transportation & Logistic services as a Support Service
for better co-ordination.

 Door to Door Services (Ex-work to Door Delivery)

We provide End to End logistics solution through our Global Agent
Network.

o Domestics Cargo Handling

 Door to Door – By Road and Sea combination

 Door to Door – By Road and Rail combination
 Full/Part Container Rake Movement(registered Agent of CONCOR)

o Air Cargo Handling (export as well as Import)

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  Freight Forwarding
Provides competitive Freight rates for Worldwide Air Ports.Ex-
work, FOB, DDU & DDP shipments are also accepted.

 Custom Clearance
Assurance of our prompt and reliable services fo Custom
Clearance of your import and export shipments at Ahmedabad
& Sahar Airport – Mumbai.
 Transportation
Provides Transportation & Logistic services as a Support Service
for better co-ordination.

 Door to Door Services (Ex-work to Door Delivery)

We provide End to End logistics solution through our Global
Agent Network.

o Bulk & Break Bulk Cargo Handling

 Chartering
 Vessel agency
 Project handling
 Stevedoring
 Custom clearance
 Transportation

o Consultancy Services

 For SAD Refund

 For Drawback Refund
 Marine insurance

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 IMPORTANT ABBREVIATIONS RELATED TO
SHIPPING AGENCY

AF Advance Freight (such as prior to shipment)

AN Advice Note
ANF Arrival Notification Form
AWB Air Waybill
BAF Bunkerage Adjustment Factor on shipping rates
BDI Both Days Included
B/E bill of exchange
BKGE Brokerage
B/L Bill of Lading
BOND guarantee to Customs for payment of duty or tax
CAD Cash Against Documents
CAF Currency Adjustment Factor for sea freight rates
CBD Cash Before Delivery
CCC Customs Clearance Certificate
CC/O Certificate of Consignment/Origin
CD Customs Declaration
C&E Customs & Excise
C&F Cost & Freight
C/I Consular Invoice/Certificate of Insurance
CIF Cost Insurance & Freight
C/N Consignment Note, Cover Note
C/O Certificate of Origin
COD Cash On Delivery
COM/I Commercial Invoice
CRN Customs Registered Number
CTC Customs Tariff Code
DA Documents Against Acceptance
D/A Disbursement Account
DDP Delivered Duty Paid
DDU Delivered Duty Unpaid
D/N Debit Note/Dispatch Note
DWT Dead Weight Tonnage
D/P Documents against Payment, Direct Port

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DO Delivery Order
ETA Estimated Time of Arrival
ETD Estimated Time of Departure
EXW Ex Works
FAS Free Alongside Ship
FCA Free Carrier (named place)
FCL Full Container Load
FOB Free On Board
GA General Average
GA CON General Average Contribution
GRT Gross Registered Tonnage
GSP Generalized System of Preferences
HAWB House Airway Bill
IEC Importer Exporter Code
ICD International Container Depot
ICC International Chamber of Commerce
L/C Letter of Credit, of which there are several forms
LCL Less than full Container Load
MAWB Master Air Waybill
NRT Net Registered tonnage
NOR Notice of Readiness
NDC No Due Certificate
PHO Port Health Officer
PC Port Clearance
S/B Shipping Bill
SEZ Special Economic Zone
SOF Statement Of Facts
VAT Value Added Tax
SA SHIPPING AGENT
CQD Customary Quick Dispatch

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 IMPORTANT TERMINOLOGIES

1. GANGWAY PLACED =
Stares for coming inside the vessel made of wood and rope.

2. Stowaway = a person who illegally or by mistake board the vessel that

person called stowaway.

3. Crane outreach from ship side =

When the sizes of fenders are big it is hard to use deck crane

4. Wire transfer against delivery=

It is a payment term where BANK TO BANK payment is made against the
delivery of goods.

5. ECC NO. =
Excise control code

6. GSP=
Generalized system of preferences .it is like certificate of origin, but
specifically used in some countries like EUROPE. Formats for documents are
there which everyone have to follow.

7. Phytosanitory certificate =
It is to prove that the goods are agro products. Office is in Gandhinagar to
issue this.

8. Haulage charges =
From origin to loading port whatever inland charges are made also from
discharge port to destination port whatever charges are made.

9. High seas sale agreement =

 When the buying-selling made where the goods are in mid sea in the vessel.
 At that time first buyer endorsed BL in favor of High Seas Buyer.
 Buyer at the destination port will pay custom, stevedoring, cargo handling
charges.
 After transfer of the name of goods Insurance is taken by Buyer.
 There may be chances of cheating as seller can make it after reaching the
destination port to take the tax exemption.

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10. LCL Consolidation=
 Less than Container Load. In this other cargo is also stuffed in the
container to full the container.

11. LOI (LETTER OF INDEMNITY)=

 When the original BL cannot reach to the port of discharge at that time
the cargo receiver give LOI to the shipping co. (vessel owners) to
indemnify in case of any loss & consequence & request to allow
discharging of cargo without presentation of Original BL.

12. Vessel Calling No.(VCN) =

 When vessel allows entering the port this No. is given to ship by port
authority. for that all vessel related certificates have to be submitted.
 When the Vessel is overage or more than 25 year than notification of
arrival should be given to the PORT OF DESTINATIION before the
loading is made at port of origin. (For GMB Port Only)
 When the vessel is of normal age notification before
o Coast guard = before 96 hours
o Port =before 7 days
o Custom = Minimum before 48 hrs & where the voyage is of
short distance before 6 hrs

13. OECD=
 Organization for Economic Cooperation and Development

14. Dispatch money=

 it is always half of the demurrage charges. As per Charterer Party
agreement signed between owners & charterers port authority to the
owner or agent of the cargo if it is taken from the port earlier than the
given time.

15. Container SEAL NO.=

 Factory stuffing= for this permission from the Custom & Excise should
be taken. After that excise will examine the cargo at FACTORY and
give SEAL NO.
 Dock stuffing= Custom will examine and give SEAL NO.
 Shipping Line Bottle seal no.

16. TP Shipment (Transshipment Shipment)=

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  When any foreign vessel is at Indian port and need any repair or need
any particular (equipment) such as pump to wash the vessel, and that
have to be import from the foreign country or from the origin country of
the vessel.
 At that time duty on that import do not have to pay TP BOND have to be
submitted in the CUSTOM by CHA.IN that it is mention that the
IMPORTED EQUIPMENT will be exported again with the export of the
vessel.
 After submitting TP BOND, Custom will give TRANSHIP PERMIT.
 As cargo arrives 1st Custom will check than that equipment load on
vessel, where MASTER will SIGN that he has received the imported
cargo.
 After all these procedure all the DOCUMENTS are SENDING to MAIN
CUSTOM OFFICE. They after checking all documents and conform about
nothing wrong has occurred, they CANCEL the TP BOND.

17. Freight tax exemption(DTAA agreement)=

 According to the agreement when Foreign Vessel comes to INDIAN
PORT for the EXPORT purpose. The OWNER has to pay tax to the
INCOME TAX DEPARTMENT of India as well as to the resident country.
 Without the payment of tax vessel cannot be sail from the port.
 To exempt from the payment of this double tax payment owner give
application under this agreement to the TAX DEPARTMENT of India.
 After verification of all the required documents Income tax will approved
the application and give permission to the vessel to sail from the port.
 For this India must have agreement with the country of origin such as
UK, DENMARK, and GERMANY.
 The 51% share holder of that shipping company must be of country of
resident.

18. SHIP CHANDLER=

 A ship chandler is a wholesale dealer who specializes in supplies or
equipment for SHIPS, known as ship's stores.
 Vessel agent cannot provide the supplies due to rules and regulation
that work have to be done by the ship chandler.
 Chandlers deal more in goods typical for fuel-powered commercial ships,
such as oil tankers, container ships, bulk carriers.
 They supply the crew's food, ship's maintenance supplies, cleaning
compounds, rope etc.
 If any heavy equipment is supplied at that time SHIPPING BILL have to
be submitted in the port.
 Before boarding the supplies, NOC from the vessel agent have to be
taken.

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19. CUSTOMARY QUICK DISPATCH(CQD)=
 In general there is some contract or commitment by port or stevedore
about the dispatch of cargo. For e.g. 8000 mts per day.
 But in CQD no commitment is there about discharging by cargo by port
authority or stevedore.

20. Sea of Protest =

 In any situation where port or stevedore wants to justify about there is
no fault of there. They issue SEA OF PROTEST.
 When the cargo is found damaged at that time STEVEDORE issue this
document and also make it signed by master also.
 In case where vessel got damaged at that time MASTER issue this
document.
 Vessel agent informs the owner about the damage.
 Also at the time where vessel is idling without cargo operations where
discharging work slow down.

21. Port Community System (PCS)

Centralized Port Community System (PCS) will provide a single window

for the port Community in India to securely exchange the documents and
information electronically across its stakeholders involved in the maritime

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transport and logistics chain including the trading partners and government
agencies. It also will provide global visibility and access to the central database
to all its stakeholders through internet based interfaces.

The following are the key components of PCS:

 A centralized intelligent messaging system for the stakeholders to exchange
messages in XML, UN/EDIFACT and proprietary standards in multiple
protocols.
 A centralized database to provide effective track and trace facility to all
stakeholders and also acts as data repository for research, analysis and
reports.
 A web based application that acts as a single electronic window for ports and
stakeholders to access and maintaining the central database.
 An e-commerce portal for the port community that facilitates electronic
payment options for the stakeholders.

PCS OVERVIEW

PCS Message Hub, the centralized intelligent messaging component in PCS,

will streamline the exchange of business documents and information between
port community stakeholders and the government agencies involved.
PCS Web, the single window internet application, will provide global
visibility and access to the central database populated from the messages
exchanged between the stakeholders.
PCS Portal, the e-commerce portal for the port community, will provide the
interface for the stakeholders to interact with PCS and also provide a
platform for publishing general information to public and the stakeholders

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 STAKEHOLDERS INVOLVED IN PORT PROCESS

The following are the stakeholders of the whole port or marine transportation
without them work can not be completed:-

 Port Authority
 Shipping Line/Agent
 Terminal Operator
 Importer/Exporter/Custom House Agent
 Stevedores
 Container Freight Station Operator
 Rail Transport Operator (CONCOR)
 Surveyor
 Transporter
 Bank
 Customs
 PHO
 Immigration

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 SHIPPING AGENT
The ship’s agent is the local expertise who will represent the owner in
every port the ship visits. To the owner of an international trading ship, which
rarely calls at her “home” port, the appointment of an agent in every foreign port is
essential, ensuring that the visit to the port will go smoothly. The ship and those
aboard her may never have visited that port before, they may not speak the
language or even understand it, but the agent will ensure that everything they will
need will be delivered.

The agent will ensure that the paperwork is perfect, that the tugs and
the linesmen are on hand, and that the pilot is booked, that the berth is ready and
the stevedores alerted. The agent will have told the Master about any special
problems of the port approaches, or any “customs of the port” which might be
unusual. He will have given some rough idea of the disbursements - the costs -
which that ship will incur during her visit. He may have the job of selling cargo
space and will have some responsibility for ensuring that the cargo and the ship
arrive in the port at the same time!

The agent will be one of the first persons aboard the ship upon arrival,
smoothing the path of the Master with the customs, port health and other official
visitors. Agents will be hugely welcome for the mail they will bring, and local
currency to enable the crew to have a couple of trips ashore. The agent will
invariably have a long list of demands from the ship to fulfill. The Chief Officer
wants 300 tons of fresh water. The Chief Engineer wants 100 tons of gasoil, 400
tons of heavy fuel oil, oily waste to be landed and a list of engine room spares as
long as the agent’s arm. The ship is running out of eggs and needs fresh
vegetables.

There will be two crew members going on leave, who will have to be
paid off, helped to the airport and seen off, with their replacements met, delivered
to the ship and signed on. The Master’s wife would like to go to the shops. A list of
stores preceded the ship and there is necessary liaison with the chandlers over
their delivery. The agent knows his port and its community thoroughly, and is able
to help with everything from the best place to get a haircut, why the stevedore
appears to have ignored the stowage plan and when the vessel is likely to sail.
Problems are his business.

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 With the ship ready to depart and the agent having shaken hands with
the Master and been one of the last persons down the gangway, the next phase of
the job begins with the bills that require to be paid on behalf of the owner; all the
costs that have been incurred during the visit. Hopefully, it will have been a
positive outcome, with Master and agent getting on well, the complications
unraveled and the ship full of well-paying cargo, a good relationship established.
But as the departing vessel sounds her siren in farewell, He is already thinking of
the next customer, even now arriving in the roadstead with her different set of
demands to be fulfilled and problems to be fixed. A good steamship agent is never
idle for long.

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INVOLVEMENT OF SHIPPING
AGENT IN IMPORT-EXPORT
CYCLES

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 Some important information about the cycles
 First the owner of the vessel sends Proforma D/A (Disbursment Account)
request, it is like a tender to many agents where he ask to give PDA about
how much expense can occurred at port.

 Agent, who gives the best price, owner confirms him as Agent.
 Agent get all the documents from the owner of the vessel.
 Vessel agent file IGM on the base of documents
o If voyage is of more than 4 days = before 48hrs IGM must file
o If voyage is of less than 4 days = before 10 hrs must be file

 After submitting all the documents BERTHING Application is given to the

port.
 Port gives VESSEL CALLING NO.(VCN)
 Port give vessel Declaration Report
 At the time of arrival ,booking of PILOT (Inward Memo) is made
 As vessel comes to anchorage point and all thing go well MASTER gives
NOR(NOTICE OF READINESS)
 With the help of pilotage ,vessel ARRIVE at the berthing point and take berth
 Receiver have to give ORIGINAL BL to Master to start discharging operation
without that discharging cannot happen except LOI
 If ORIGINAL BL is not there LETTER OF INDEMNITY is given by charter to the
owners.
 Discharging process starts
 The difference between the VESSEL BERTHING & DISCHARGING
COMMENCED should not exceed 2 hours otherwise PENALTY is levied.
 After that NO DUE CERTIFICATE (NDC) is given by the PORT or STATE
MARITIME BOARD.
 After paying all the dues CUSTOM gives PORT CLEARANCE CERTIFICATE with
the validity of 72 hrs. Without PCC vessel cannot sail from the port.
 After PCC, VESSEL MEMO/SAILING MEMO is given which is signed by
MASTER that after these much time vessel will sail.
 On the bases of SAILING MEMO, OUTWARD PILOT BOOKING is made.
 As all the process completed EGM is filed to the custom. (Have to file within
7 days after sailing)
 After EGM is filed; final D/A is made by the VESSEL AGENCY.
 Light House Dues should be paid upon arrival of vessel – Same would be
valid for 30 Days

 Here demurrage and dispatch money is also calculated

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o Where terms are there such as SSHEX EIU( Saturday Sunday
EXcluded Even If used)
o In ISLAMIC COUNTRIES : FSHEXD EIU ( FRIDAY SATURDAY Excluded
Even If used)

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 SCOPE FOR SHIPPING AGENT

 Prior IGM file.

 Prior arrival to get approval for the vessel from the port about its
seaworthiness and health.
 To declare vessel at Port.
 To give ETA notice to port, receiver and stevedores.
 In case of Export Shipment to obtain INCOME TAX CLEARANCE.
 On arrival issue NOR to receiver, stevedore, port.
 To finalize IGM upon arrival of vessel.
 On arrival to get health certificate for vessel from PHO, in case where the
vessel is coming from YELLOW FEVER ZONE.
 On arrival to pay light house dues.
 Arrangement for custom boarding.
 To arrange pilot for berthing as well as unberthing.
 Port payment on behalf of owner.
 To appoint draft surveyor on behalf of owner if required.
 To issue DO and for this it is necessary to get approval from owner or
charterer to receiver or receiver’s agent .DO is submitted to port by receiver
without that he cannot take delivery.
 To look after loading/discharging process.
 To update daily working report to owner this is signed by Master, stevedore
and vessel agent also.
 To obtain NDC from Port, VTMS and State maritime board as per the rules of
the port.
 To obtain PC from Custom.
 To prepare SOF signed by master, stevedore and agent also.
 To give ETC/ETD to owner or charterer.
 To file EGM within 7 days after sailing of vessel.
 To prepare final D/A.

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 VALUE ADDED SERVICES

 All the services according to the requirement of the vessel owner.

 Sign on and Sign off of crew member.
 Renewal of certificates.
 Arrangement of provisions, fresh water, equipments for that ship agent or
owner hires SHIP CHANDLER who supplies the needs. But before boarding
the supply NOC for agent must be taken.
 To provide latest notified admiralty chart/ BA Chart.

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CERTIFICATES REQUIRED IN THE PROCEDURE
 BASIC DOCUMENTS
1. PACKING LIST
2. EXPORT INVOICE
3. SHIPPING BILL
4. BILL OF LADING
5. GSP/CERTIFICATE OF ORIGIN
6. EXAMINATION REPORT FOR THE FACTORY SEALED
PACKAGES/CONTAINER
7. BOOKING CONFORMATION (DO) GIVEN BY SHIPPING LINE

 OTHER DOCUMENTS – FOR VESSEL AGENCY ONLY

o Statement of Facts =all timings about vessel is there
o Port clearance=
 If nil cargo is there in bottom then SAME BOTTOM CARGO NIL
 If no cargo is there then NO CARGO IN BALLAST
o Daily working report= cargo loading and unloading report on vessel
o Draft survey report – at the time of cargo operation commenced & completed
o No damage certificate= where while handling cargo no damage to vessel
happen given by stevedore
o No injury certificate = where no injury to the worker happen given by
stevedore
o Certificate of stevedoring = master give that this stevedore has handle the
cargo given by stevedore
o General declaration application for entry inward (IGM)( form-1),
 ship’s stores declaration(form-2 & form-4)
 form-5 for crew’s effect declaration
 form – 1 for port trust/customs/MMD/health dept./police
o Maritime declaration of health
o Same bottom cargo certificate
o Arrival report
o Departure report
o Seaman book – passport
 VESSEL CERTIFICATES
o Cargo ship registry certificate
o International classification certificate
o Cargo ship tonnage certificate=
 where the GRT,NRT,DWT of the vessel is given
o Cargo ship Radio and Telegraphy certificate=

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  where the all communication equipments are working is given
o Cargo ship safety equipment certificate=
 where the safety tug, fire machine are in working condition is mention
there
o Cargo ship security certificate=
 where no hazardous material or equipment is there is mention
o Cargo ship sanitation exemption certificate=
 here the ship is free from the infection and yellow fever kind of viruses
is mention
o Cargo plan=
 if any hazardous material is there it has to be mention here so that
which crane and cargo handling machine to use can be decided
o Notice of readiness=
 given by master of vessel that the ship is ready for berthing as well
loading/discharging
o Provision and stores inventory list=
 Where the things which are stored are given such as food, fuel,
equipment etc.
o IMO crew (including personal effect) list =
 here personal effect such as laptops, mobile including cash contain by
each crew member is given
o IMO crew list
o NIL list =
 This gives that there is no animal, no weapon, no passenger and no
stowaway is there. It is given by the master.
o Ship cash=
 given by master that there is cash or not on board
o Last 10 port of call
o Cargo manifest=
 EGM/IGM ,
 where master declare about the cargo on board to the custom before
arrival or some time at the time of arrival
o Grain loading plan and stability certificate
o Report of inspection=
 where all the documents and vessel are inspected,
 in accordance with the Memorandum of Understanding on port state
control in the Mediterranean Region ,
 Copy to :master/head office/PCS office ,
 If ship is detained copy to : Flag state, recognized organization(if
applicable) , If deficiency found attach it in with cert. or report

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 ISSUING AUTHORITY OF DOCUMENTS

 Check before making the REPORT OF INSPECTION

No. Documents/certificates Issuing

authority
1 Certificate of cargo ship safety equipment Class
2 Cargo ship safety Class
3 Passenger ship safety cert. -
4 Cargo ship safety radio cert. Class
5 Document of compliance/ISM (international safety Class
mgmt.) code
6 Safety mgmt. cert./ISM code Flag
7 Load line cert. Class
8 Cargo gear record book Class
9 Minimum safe manning document Flag
10 Dangerous chemical in bulk Class
11 International oil pollution prevention cert.(IOPP) Class
12 International sewage pollution prevention cert. Class
13 International ship security cert.(ISSC) Flag
14 Continuous synopsis record(CSR) flag
15 International Air pollution prevention cert.(IAPP) Class
16 Registry certificate Flag
17 Classification cert. Class
18 Bunker insurance cert. Flag
19 Anti fouling system cert. Class

o Certificate of insurance
o Ship sanitation control exemption certificate – Valid for 6 months from the
date of issuance
o Booking of Pilot memo – As per port formats
o Certificate of particulars change
o Interim international tonnage certificate
o International load line certificate
 May be one side of the ship or both the side

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  Types of load line
 Tropical(T)
 Summer(S)
 Winter(W)
 Winter north Atlantic(WNA)
 Timber Tropical(LT)
 Timber Summer(LS)
 Timber Winter (LW)
 Timber Winter North Atlantic(LWNA)
o PANS (Pre Arrival Notification of Security)= submitted to port authorities at
least 24hrs prior to the arrival of vessel
o Declaration of Garbage= Waste food stuff, plastic etc. under MARPOL Act.
o Berthing application =to take berth
o Vessel cargo particulars = As per port format

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 CUSTOM CLEARANCE DOCUMENTS
FOR BULK CARGO
 PD Bond drafted attach= kind of guarantee given by customer to custom.
 It is for BULK CHEMICAL CARGO.
 Where Custom will take the sample from the bulk and send it to the
laboratory for the checking and inspection.
 In lab they check the sample and compare with the data given in documents
by customer about cargo.
 If any different material found for that extra duty have to be paid to custom.

 Bill of lading
 Invoice
 Insurance copy
 Freight and invoice value break up detail for unit rate of material
 Certificate of origin
 Analysis certificate =sample from the bulk is taken for lab testing and
analysis is made
 Sales contract/Agreement copy
 LC copy
 Duty calculation sheet – For Manual BoE only
 Sample detail = Sample which have taken to laboratory for checking
 Test memo drafted ready
 Declaration
 Authority letter=given by the customer that he has given the authority to the
agent , one copy to CHA and other to Customs
 Request letter for provisional assessment
 Annexure GAAT declaration
 Copy of “ ONE time permission” – For captive jetty only
 KYC= Know Your Customer Certificate which gives proof about the customer
who signed the documents
 IEC
 PAN

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DUES/CHARGES
 PORT DUES =PER GRT
 PILOTAGE CHARGES = PER GRT
 BERTH HIRE= ON GRT @ HRS USED
 SERVICE TAX
 ILH DUES=LIGHT DUES (8 X NRT) Validity 30 Days
 WATCHMEN WAGES
 DRAFT SURVEY
 SUPERVISION WAGES
 AGENCY FEE
 COVEYANCE
 PROFORMA PORT DISBURSEMENT ACCOUNT - PDA

IN DETAIL
 Vessel related charges
o Port dues
o Pilotage = for port convenience shifting no charges are levied
o Detention charges of vessel
o Berth hire charges = according to type of vessel
 Schedule of wharfage charges
o For using landing places
 Break bulk cargo
 Bulk cargo
 Container charges
o Wharfage charges
o Storage charges
o Restow charges
o Hire charges of spreaders for container handling
o Container handling charges
o Electricity and monitoring charges for reefer container
 Demurrage
o Imports
 Free days- normally of 7 days. As per the port policy
 free period
 survey of goods
 empty or partially empty packages demurrage charges on
Sundays and port holidays
 delivery of goods
 congestion of goods

Exports

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  free days
 shut out cargo=at that time it is added to the free days
 free period
 congestion of goods
 transshipment of goods

 Other charges
o for supply of Fresh water
o for use of bunkering facility alongside berths
o marshalling yard usage charges
o fees for issue of license to C&F agency
o fees for issue of license to steamer agency
o for hire of launches and tugs within the limits of the port
o hire charges for cargo handling equipment
o charges for use of harbor mobile cranes installed by the private
operators

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 OVERVIEW OF THE CURRENT SYSTEM FOR
COMMUNICATION BETWEEN SHIPPING AGENT AND
OTHER STAKEHOLDERS

All the major ports in India handle bulk break bulk, containerized and liquid
cargo. The port operations in various ports are not same, though similar, due to the
different kind of cargo they handle, different players manage the cargo related
activities and different pace and levels of automation of operations.
Many of the major Ports use Terminal Operating systems like Navis,
IPOS and CETOS for managing their terminal operations. They exchange EDI
messages with Customs. Some of them even exchange few electronic messages
with some of the big Shipping Agents and more advanced private Terminal
operators.
Though there exist different IT systems deployed by Ports and other
different Port Community players but these IT systems only provide limited
interfaces to others. The community at large has no single point of information
consolidation and retrieval Shipping goods from one port to another port in India
makes it even more difficult for the stakeholders since they will have to liaise with
multiple systems to do transactions over different ports.
In general, documentation and processing is still manual for most of
the stakeholders in the ports community, except few international players.
Therefore, exchanging data or information, getting status updates from trading
partners or business transaction with other members of the community take place
manually resulting in re-entry of data into their internal systems and the increase in
the dwell time for the vessels visiting the ports.

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(Situation of current system in Information
exchanging process between stakeholders)

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 PROBLEMS WITH THE CURRENT SYSTEM
Though the automation of the terminal operations and other functional
areas are done Or being done to a good extent in many of the Ports, the port and
the stakeholders are Unable to get the expected benefits due to the lack of holistic
approach towards the Automation and the disconnects resulted from the lack of
common platform for Document exchange.

The following are the problems faced by the shipping agent and other
stakeholders of the port due to the current system prevailing.

1. The differences of standards/format used during the document exchange

between some of the stakeholders make the electronic document exchange of little
use to The Partner.
2. There is no centralized system that can do the conversion from one standard
format to another and make the information available to all the players involved.
3. Since Vessel schedules, ETA and Berth allocation details are not published on
real time basis, daily berthing meeting between Port officials and Shipping Agents
becomes necessary for confirming the berth allocation to give transparency.
4. It is quite difficult to locate a container in many Ports’ CFS since no yard plan is
followed currently and if there is any, it’s not updated and conveyed to Agent/CHA
when the containers are shifted from the original location to another.
5. Stakeholders still need to submit paper documents in many counters, though the
functions of the counter is automated, as there is no link between various existing
systems implemented in the Ports.
6. The IGM hard copies are still submitted by SA in almost all the ports since the
IGM (EDI message) from SA or Customs is not used by the port. Port Systems
either don’t have an option to do import the IGM message or it can’t interpret the
messages.
8. IGM is submitted to all the CFS even if only few containers are moved to one
CFS and rest to another CFS. Only the list of those container moved to a CFS
should be send to that particular CFS.

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9. Coastal Vessels need to submit Bill of Entry through hard copy to Customs
though they don’t have any imported cargo and it is not required for any duty
assessment.
10. Up to seven copies of DO to be given at various counters for filing since the
document exchange and book keeping is still manual.
11. Reports from the Labs the samples sent for testing, taking long time. This leads
to the delay in issuing PHO certificate.
12. To issue the LEO, Custom officer checks all the applications, then goes back to
office and enters the details onto the system. Instead, he can use any mobile
device to issue LEO while checking each vessel. The dwell time can be reduced by
at least around 4 hours by this.
13. Once LEO is issued for break-bulk cargo and if part of the break-bulk is
changed to container since all the cargo is not able to be loaded in the vessel, the
CHA needs to cancel the S/B and LEO and need to get another S/B and LEO. It
takes 3 days for the customs to approve the S/B and LEO even if the cargo is still
the same mentioned in the previous S/B and LEO.
14. Collection of DO is totally manual. CHA has to go to different Shipping Agents
for getting DOs for different importers the CHA represents.
15. No option to track bonded containers (containers of foreign origin. The bonded
containers have to be sent back to their origin within 6 months from the arrival day
in India)
16. Many SL/SA doesn’t have message translators to translate the messages to the
format acceptable to customs.
17. The Port systems cannot provide information about the cargo once it leaves its
boundaries. i. e. when the cargo is transported out by rails and trucks.
18. CFS is not linked to Customs and therefore physical examination orders need to
be submitted to CFS. It would be good to connect CFS to the Customs for getting
the most updated B/L details.
19. CHA is required to escort each truck inside the CFS and outside the CFS with
the documents because the gate-officer does not have access to the necessary
information (like Bill of Entry).
20. Import and Export Document goes through lot of small changes / amendments.
Currently it is not easy for the stakeholders to carry out the amendments.
21. Shipping Agent and other stakeholders need to directly enquire with the Port
regarding Vessel Arrival/ Departure information and other vessel, cargo and
container movement status as there is no real time status update or checking
option available in the current system
22. Currently, there is no reminder or notification mechanism in place if there is a
delay in processing or approval.

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23. Gate in and gate out in the port is quite difficult and time consuming due to the
manual verification of the document in the gate. Good amount of the time will be
saved by streamlining the gate in/out passes issuance and verification of the passes
at the gate.
25. IGM hardcopies are submitted still to Port and Customs in some of the ports as
the EDI submission to Customs and port is not totally streamlined.
26. GRT is asked 3 or 4 times in different applications during one import / export
cycle.GRT will change if the vessel profile is changed during the process leading to
Confusion which one is the correct one.
27.. Port users are not getting the details about the yard planning and container
movement.
28. Data is submitted twice, first to the customs and then to the ports by CHA as
some of the EDI messages that are currently being sent from Customs to Ports
(CFS) cannot be interpreted by the Port systems.
29. Vessel Call sign is not unique and some ports it is used to uniquely identify the
vessel.
30. For some of the CFS, the operations are totally manual and the Information
about the containers shifted to CFS is not available through the system.
31. Shipping bill (EDI based) is not received in Port even after hard copy of LEO is
received
32. Cargo Release Order (EDI-based) is often received after the Cargo has been
released
33. Yard report/register is still paper based in some ports and the messages sent
from the container management to move the empty containers are not made
electronic yet.
34. If a Vessel is used for both Import and Export, Different VCN numbers are used
for Import and Export separately in some ports.
35. SA maintaining separate accounts wit Port for different kind of charges (Like
Vessel Related Charges, Cargo related Charges)
36. Immigration passes (Dock entry permits and NOC) are not uniform in formats
in different ports.
37. All documents are manual and hardcopy forms for immigration; no IT systems
are in place to help the work
38. Different SAs submitting Voyage registrations for Import and Export separately
for the same vessel.

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 SUGGETION FOR THESE PROBLEMS

1. Defaulters (SA) of charges should be blacklisted and prevented from using the
port services that he hasn’t made the payment for and alert other ports.
2. SA can apply for Line clearance from the Tank Operator and Tank Operators can
submit tank readiness form to Port through PCS
3. To use a Pre-gate application that will take in information from the Import
Advance List and IGM. It will allow the SA to fill in additional information for
example seal no., origin, destination, etc. It will then automatically populate Pre-
Advice Inbound Rail Container Application that is filled-in by the Port operator while
issuing the Gate Pass.
4. Bills / Invoices should be standardized into a common international format
across the ports although the tariffs by different ports may be different.
5. Port can push bills files to banks and banks send EDI response back. But Port
must send payment details, for example, for which items are these bills for. PCS
should reconcile the details.
6. Vessel movement should be transparent and notified to each SA every time
whenever there is Vessel Shifting/Vessel Berth/Vessel Un-Berth
7. IMO number or MMSI number can be used to uniquely identify the Ship.
8. Cancellation and amendment in the shipping bill should be made electronic.
9. Not all SL/SA are able to provide this COPRA EDI to Port. These messages can
then be translated by PCS and sent to the Terminal Operators or the Terminal
Operators will need to change their system to translate these messages.
10. Bay plan/yard plan report should be graphical and published on-line.
11. Even though Free Pratique is issued, if the crew members are sick, while
Immigration gives the permit, they need to notify PHO about this.
12. E-mail ID of the Vessel should be included in the Vessel Profile
13. In the Vessel Profile, Include call sign change date and last call sign. Date of
previous Vessel name change should be included in Vessel Profile
14. There should some provision to change type of the Vessel between Foreign and
Coastal during the voyage.
15. Amendment of IGM should be on-line.

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16. The list of all banned cargo should be published through PCS.
17. Port Immigration Systems should be linked with the all the AIR PORTS
18. After paying the duty, if CHA gets clearance from customs at 3 or 4 pm, CHA
goes to the CFS next day. Where they have to enter the details again to the
system. But takes long time. Instead, if CHA enters the details and CFS verifies the
details next morning, can reduce delay
19. PCS should provide online immigration application that checks for blacklisted
crew.
20. Sea Port immigration under state government’s purview but airports under
Central immigration.
21. Sometimes, SA comes to apply for NOC after ships sails, but Customs would
have given clearance for vessel sailing.
22. Port can push bills files to banks and banks send EDI response back. But Port
must send payment details, for example, for which items are these bills for. PCS
should reconcile the details.
23. CFS is not linked to Customs and therefore physical examination orders need to
be submitted to CFS. It would be good to connect CFS to the Customs for getting
the most updated B/L details.
24. CHA supposed to pay Stamp Duty to Shipping Companies and Shipping
Company in-turn pays to the govt. Only after the customs signed bill of entry is
shown to the shipping line, does the shipping line accepts the stamp duty. If the
payment can be made to CFS directly and CFS can send to Shipping Line, it will be
of great help. Also, electronic payment of stamp duty will help expedite this
process.
25. Hiring of transporters (private) is currently done by phone or fax.
26. CONCOR is using their own train codes while JNPT is using their own train codes
and messages exchange between them cannot be achieved.
27. Bills / Invoices should be standardized into a common international format
across the ports although the tariffs by different ports may be different.
28. Import and Export Document goes through lot of small changes / amendments.
Currently it is not easy for the stakeholders to carry out the amendments.
29. Pre-Advise list should be sent electronically to Port and made available to the
people at the gate.
30. In JNPT EIR (Eqpt. Interchange Report) i.e. gate pass is issued only at the time
of departure at the outgate for both receipt of export containers as well as delivery
of imports.
31. Documents exchanged are in manual format and at most email attachments
32. Forwarding Note can be made electronic so that it will be easier.
33. Hazardous cargo codes, agent codes between S/L, Ports, Customs and CONCOR
are different.
34. Some cargo is considered normal to ports while in CONCOR, the same cargo is
classified as hazardous.
35. Cancellation and amendment in the shipping bill should be allowed.
36. History of the ship need to be kept. Need to track the ports or the restricted
countries the ship has visited before reaching the Indian port.

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37. Provision to search vessels by Vessel name should also be provided. (Vessel ID,
Call sign are auto generated number so no body remembers them so if the details
of the ships should come by choosing the ships name once the ship enters to port
till it sails out.)
38. International code has to be provided to all ports and stakeholders.

 Bibliography

o http://www.indianpcs.gov.in
o http://ipa.nic.in/pcs/Pcs.asp

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