EXPORT OF WOODEN HANDICRAFTS

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 ROLE PLAY
 Manufacturer.
 Export House.

 Exporter’s Bank.

 Transporter ..

 Clearing Agent.

 Customs.

 Insurance.

 Importer.

 Cargo Agent (Importer) .

 Importer’s Bank.
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EXPORTER

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ETHNIC INDUSTRIES PVT.
LTD.

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AN INDUSTRY WHICH DEALS IN
HANDICRAFT FURNITURE AND
ACCESSORIES.

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ABOUT THE FACTORY

• Established in 1999 at Okhla Phase I, New

Delhi
• Size of land is 13,500 square feet.
• Price of land when bought
Rs. 3,37,50,000 @ Rs.2,500/sq. ft.
• Manufactures a large range of wooden
products.
• Has a clientele spread in over 15 countries.
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Furniture should be both functional and beautiful. To meet your
diverse needs, we offer an extensive collection; or we’ll build
custom pieces to meet your specific requirements.
Our standard collections are contemporary interpretations of classic
styles with simple and timeless lines.
Our custom furniture portfolio has grown extensively over the last
eleven years. With thousands of pieces now in our customers’
homes, offices, and academic settings, we have built a wealth of
experience that we can bring to your project. Regardless of the form
or function you’re looking for, we’re confident you’ll feel at home
with Ethnic.
You'll feel great about your investment not only because of it's
functional beauty but also because our Signature Collection
furniture comes with a lifetime guarantee on defects in materials or
craftsmanship.

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A LOOK AT OUR OFFERINGS

o Chairs and Benches

o Dining tables, Coffee tables and Occasional
tables
o Dresser, Drawers and Cabinets
o Lamps and Stands
o Jewelry boxes, chests and Game boxes
o CD racks, Computer desks
o Beds, Sofa Sets and Dressing Tables
o Artistic Mirror stands and Wine trees.
o Trays and Utensils
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 TYPES OF WOODS USED
 Sheesham
 Teak
 Rose Wood
 Indian
Mahogany
 Mango Wood
 Walnut
 Maple
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 Cherry
 THE CONSIGNMENT
• 15 sets of four seater round dining table @ Rs 31,720 each:-
Chair measurement:
Height- 4 Feet.
Seating Area- 2.5 Feet.
Table diameter- 4 feet
• 15 sets of four seater square dining table @ Rs 32,500 each:-
Chair measurement:
Height- 4 Feet.
Seating Area- 2.5 Feet.
Table Size- L*B*H- 3.5 Feet*3.5 Feet*3 Feet

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 EXPORT HOUSE

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 VDR EXPORT (P) LTD
We have been in the export business since 2003 and
enjoying the status of a Export House(EH) given by
DGFT as our annual export turnover is more than
Rs.20 Cr. We mainly export rice and wheat to
Singapore, Malaysia, South Africa and Indian
Handicrafts to France and Germany. Now we will
export Wooden Furnitures to France because of its
great demand in the French market. We are also a
member of Export promotion Council for
Handicraft.
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 DETAILS
 LOCATION: Industrial Plot 1 &2 ,Sector 28,
Faridabad
 ANNUAL TURNOVER : 20.0 Crores.

 Major countries (export): Singapore , Malaysia ,

south Africa , France , Germany.
 Major countries(import) : Malaysia , Singapore ,
Germany , New Zealand , Australia.

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 REGISTRATION WITH TAX AUTHORITIES

Goods exported out of the country are eligible for

exemption from Value Added Tax. So, to get the
benefit of tax exemption it is important for an
exporter to get registered with the Tax Authorities.
(CENVAT= 10% and EXCISE CESS = 3%)

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CONTRACT PRICE
ROUND TABLE (15 SETS OF TEAK WOOD)

Particulars Working Notes Subtotal Grand total

Cost Price 31720 X 15 475800

Transportation 14355/2 7177.50
Insurance 1136 X 15 17040
Interest on finance 31720 X 15 X .09 / 4 10705.50 510723
Profit @ 12 % 510723 X .12 61287 61287
TOTAL 572010

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CONTRACT PRICE
RECTANGULAR TABLE (15 SETS OF TEAK
WOOD)

Particulars Working Notes Subtotal Grand total

Cost Price 32500 X 15 487500

Transportation 14355/2 7177.50
Insurance 1153 X 15 17295
Interest on finance 32500 X 15 X .09 / 4 10967 522940
Profit @ 12 % 522940 X .12 62759 62759

TOTAL 585699
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 EXPORTER’S BANK
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 DOCUMENTS REQUIRED
 Letter of credit/Export contract/Buyer’s Letter.
 An undertaking that the advance will be used for a
specific purpose as per the LC.
 Copy of IEC number.

 Copy of valid Registration cum Membership Certificate

of the Export House.
 Shipping Bill.

 Commercial invoice.

 GR Bill.

 Packing List.

 Certificate of origin. 18

 Insurance documents.
FACILITIES PROVIDED

 Rate of interest for export finance is 9.0%

 Credit period is maximum for 180 days.

 Receiving payment from importer’s bank.

 Provide pre export finance as well as post shipment

finance to the export house.

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KARAM EXPRESS

KARAM EXPRESS
A-252, Sant nagar ( East of
Kailash)
NEW DELHI

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 KARAM EXPRESS TRANSPORTERS

• We need to transport the goods from the

manufacturer’s base in Okhla , Phase I to Tughlakabad
Inland Port warehouse New Delhi.

• All the loading will be done in supervision of our

representative.

• Total distance of the warehouse from manufacturing

unit is 5.15 Kms.

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• Price charged by the us(KARAM EXPRESS) for 1 truck is
Rs 4875.(3000+1500+375)

• We have a total fleet of 15 trucks of various capacities.

• We(Exporter) have shortlisted the truck with 9 tonnes

capacity.

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 KARAM EXPRESS
 We have taken adequate insurance for the vehicle, and against third party
claims, from United India Insurance Co Ltd.
 We have a fleet of a 15 trucks consisting of TATA 407,709, LPT,Truck and
containers .
 The risk for the furnitures at the time of transit remains with the owners.

 The owners have to get the goods insured.

 We have national permitt and local permitt to carry goods all over the
India.

 Our highway rate for carrying goods all over the India is according to -
by weight- rs 3/kg
by cubic/m –rs 650

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RATES FOR DELHI

Loading and unloading charges to be paid by the party.

Insurance of the goods has to be borne by the party. 24
Service tax and TDS extra.
Toll tax based on tyres.
CLEARING AGENT

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CLEARING AGENT
 FALCON FREIGHTLINK PRIVATE LIMITED (IMPORT
CONSULTANT)
Engaged in providing customs clearing & freight
forwarding services like customs brokerage,
international freight forwarding, transport insurances,
indenting and bonded warehousing services.
 Address: 219-B, 2nd Floor, Administrative Building,
Inland Container Depot, Tughlakabad, New Delhi - 110
044, India
Phone:  +(91)-(11)-26234399     Fax:  +(91)-(11)-
40532975
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 OUR SERVICES
We are a leading Customs Clearing Agents in Delhi with
over 20 years of experience. With updated customs
regulations and procedures we handle clearance of
import and export consignments by sea, air and road
more efficiently and easily. Our main services in custom
clearing services include advice to the clients in
preparing documents related to import and export,
completion of appraisement and examination
procedures and payments. For export clearance, export
license or permit and sale contracts are required along
with Invoice, Packing list and shipping instruction.

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As we receive the said documents our qualified
professionals try to provide the best possible
benefit to the clients with reference to the
custom notifications and exemptions. This helps
in avoiding the delay in clearance and other
detention charges such as heavy demurrage etc.
We normally try to clear both import and export
shipments within two to three days after the
receipt of the documents.

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 CUSTOMS
• On receipt of the documents sent by the
Export House, the clearing and forwarding
agent takes delivery of the cargo from the
railway station or the road transport
company and arranges its storage in the
warehouse
• He also initiates action to obtain customs
clearance and permission from the port
authorities to bring cargo into the shipment 29
shed.
 PROCEDURE
•Computerized processing of export
document – EDI system(1996).
•Appointment of clearing and forwarding
agent
•Allotments of EDP number( electronic data
processing).
•Registration of IEC number,
•RBI code number etc.

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•Opening a current account.
•Shipping bill annexure A
•Exchange control declaration form.( sdf ,
GR)
•Endorsement/ certification on the invoice.

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 DOCUMENTS REQUIRED
•Shipping bill – 4 copies
•Commercial invoice
•GR or SDF
•Copy of LC/ export contract
•Packing List
•Certificate of Origin
•Shipper declaration form for export of goods
under
A. claim of duty draw back.
B. advance license
C. Without certification from EIA 32
 ADDITIONAL DOCUMENT
•Export license
•Pre shipment inspection certificate
•Marine insurance policy
•Custom legalized invoice
•Declaration of quality, value and
specification
•Any particular declaration or statement
•Port trust copy of shipping bill
•Vehicle ticket 33
UNITED INDIA INSURANCE CO. LTD.

Covers the risks incidental to transportation of goods by

various modes.
It provides protection against unanticipated and
accidental losses
Significance
A) legal Aspects
B) commercial Aspects

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POLICY COVERS ALL RISKS OF PHYSICAL LOSS
• Except specified Exclusions.
• Wilful misconduct.
• War/ Strike Exclusion.
• Financial default of the carrier.
• Unfitness of carrying vessel.
• Inherent Vice
• Delay
• Improper Packing

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CAUSES OF LOSS
• Fire / Explosion
• Stranding/ grounding of vessel
• Overturning/ derailment of land conveyance
• Collision/ contact with objects other than water.
• Discharge of cargo at port of distress
• E.Q./ volcanic eruption/ lightning.
• G. A. sacrifice/ jettison/ washing overboard.
• Total loss of package during loading( sling loss)
• Breakage/ damage
• Shortage/ non- delivery
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TOTAL LOSS/ CTL
 Measure of indemnity: Sum Assured
 There is a ATL, when:

 The subject matter of Insurance is destroyed,

 or so damaged to cease to be the kind insured,

 or where the assured is irretrievably deprived the

possession of the goods.

 There is CTL, where, where the subject matter is

reasonably abandoned on account of its TL appearing
unavoidable, or where its cost of retrieval exceeds the
sound value. 37
IMPORTER

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 COUNTRY INFORMATION

 Capital : Paris
 Population: 64,057,790 (est.)

 Language: French is the official language. Rapidly

declining regional dialects and languages (Provencal,
Breton, Alsatian, Corsican, Catalan, Basque, and
Flemish). Many French business people speak English.
 Weights and Measures: Metric

 Currency: EURO (EUR) One hundred cents equal 1 Euro.

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 IMPORT HOUSE

MARTINEAU
Europarc Nord
113, Chemin des Pâtureaux
49400 ST LAMBERT DES LEVEES
France

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TRADE GROUP MEMBER
 France is a member of a number of international
economic organizations including the: European Union
(EU).
 All agreements ratified by European Union Executive
Commission automatically applies to all EU member
states.

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GENERAL IMPORT CLEARANCE INFORMATION
There are three primary entry types for importing into
France:
 Standard clearance procedure

 Simplified clearance procedure

 Simplified declaration procedure

Import transactions exceeding - 38,200 EURO in value

must be conducted through an approved banking
intermediary.

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DOCUMENT REQUIREMENTS
• BILLS OF LADING - No special regulations 
• CERTIFICATES OF ORIGIN - Certificates of Origin are
required for the import of any Handicraft products
valued at over 1000 Euros.
• CERTIFICATE OF ORIGIN FORM A – A Certificate of
Origin Form A may be required for goods under formal
entry claiming preferential duty or exemption under the
various agreements of Generalized System of
Preferences. It should be produced at the time of entry
and must be in the possession of the Importer at the
time of entry. Origin of the goods must be detailed on
the commercial invoice. 43
IMPORT PERMITS

  Permits are required from Service des Titres du

Commerce Exterieur (SETICE) for the import of wood
items, amongst others in France.

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• Below is a summary of the new rules for EU
deminimis value that enter into effect
December 1, 2008:
• A commercial shipment below 22 Euros: no duty
and no VAT collected.
• A commercial shipment between 22 Euros and
150 Euros: no duty but VAT is collected.
• A commercial shipment over 150 Euros: duty
and VAT are collected.

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ADDITIONAL DUTIES
• Import Taxes
In addition to duties , goods imported into France are
also subject to a value-added Tax (VAT) which is
generally charged at one of two rates:
• The standard rate of 19.6% applicable to most
manufactured goods.
• The reduced rate of 5.5%, applicable mostly to
agricultural products and foodstuffs, original artworks
and certain medicines.

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 CARGO AGENT
(IMPORTER)

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 COMPANY PROFILE
 The first stone of Frisbee Logistics was laid down in
1989. Today this company is operating integrated
shipping related services ranging from custom clearing
services, transportation services, warehousing
services, international trade consultants etc.

 Frisbee is known for providing cost effective, efficient

and quality services.

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 SHIPPING AND OTHER CHARGES

 Administrative charges

 Import Service Fee : EUR 38

 Administrative Fee

 Mailing expenses : EUR 20/domestic

mailing
 EUR 40/international
mailing
 Handling Charge : EUR 45
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 (Gate in/Gate out or any extra moves
required)
 Custom Charges
 Custom Document : EUR 46
 (Issuance of inland transit document)

 Inspection Fee : EUR 50

 Harbor Dues : EUR 11

 (Fees paid to port authority for port system

usage)

 Other Charges
 Import Duty : EUR 10
 Scanning Container : EUR 45
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 IMPORTER BANKER
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o Commenced operations at Paris on 17th May, 1974
o Ideally located in the heart Paris (5 minutes walk from Opéra) for your
convenience with spacious premises
o Only Indian Bank in Paris to cater to retail Banking
o Fully computerized and SWIFT connected
o Courteous and committed staff of multilingual professionals
o Well equipped Forex Dealing Room manned by skilled personnel
o Over twenty-five years of expertise in  Trade Finance, Loans, Deposits
o Specialization in India related business particularly remittances to
India with over 2500 branches in key locations in India and attractive
exchange rates
o Single point information and banking liaison for Euro-Zone customers  52
 We offer a wide range of import services, delivered by
our experienced trade team, who will ensure that
Importers business is handled efficiently and without
delay.

• Issuance of documentary credits (DCs) or Letter of credit.

• Import Collections services.
• Import Financing.
• Advance Remittances / Direct Remittances.
• Advisory services on any Import transactions.
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• Documents required under Letter of Credit.

• The draft or bill of exchange

• Commercial invoice – Description of goods .
• Packing list – amount of goods in each.
package or container
• Insurance certificate.
• Certificate of origin – Attests to the
country of origin
• Inspection certificate – Independent
• Verification of quality/quantity
• Transport document

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 LETTER OF CREDIT
DCs, more commonly known as letters of credit
that are a widely used method to effect
payments in domestic and international trade. A
written undertaking is issued by a bank (usually
referred to as the issuing bank) on the
instructions of the buyer of goods to the seller.
The payment is made under conditions stated in
the undertaking. Payments are always upto a
stated limit and against stipulated documents .

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 THANK YOU

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