School of Commerce Devi Ahilya Vishwa Vidyalaya

Indore

MBA Foreign Trade (5 Years Integrated UG Program)

2007-2012

A Project Report on

“Export Management and Marketing of Plastic Bags”

For the partial fulfillment of Bachelor of Business Administration degree

in Foreign Trade

Guide

Mrs. Rajshree Desai Faculty

School of Commerce

Submitted By

Amit Wadhwani

1

Preface

Research project is an integral part of graduation. It not only helps one to have

complete knowledge about the subject but also to attain proficiency in writing.

This research project report is submitted in accordance with the curriculum prescribed

by Devi Ahilya Vishwavidyalaya, Indore to obtain Bachelors degree.

The basic objective of this report is to understand the export management and

marketing of plastic bags and plastic exports from India.

This report is based on primary data as well as secondary data collected from various

common sources like textbooks, internet etc. The limitation of time and cost were a

restriction in collection of primary data but it has been collected to my best efforts.

The report along with focusing on the export management and marketing of plastic

bags also emphasizes on the importance of plastic in our daily life and in industries,

the facts about plastic trade in world and the Plastics Export Promotion Council,

working for boosting up exports of plastics from the country.

2

Index

Ch.No. Chapter Name Page Nos.

1

Introduction ……………………………………………………...

3

2 Starting Export Business in India ……………………………….. 6

3 Introduction to Plastic and Indian Plastic Industry ……………... 12

4 Polypropylene …………………………………………………… 21

5 Export Procedure ………………………………………………... 24

6 The Plastics Export Promotion Council ………………………… 30

Conclusion ……………………………………………………..………. 33

References ……………………………………………………………… 35

3

Chapter 1

Introduction

4

Introduction

International trade plays a vital role in the overall growth and progress of a country.

Imports arrange for better technology, raw material, machinery, man power and

techniques involved for producing goods in the country. This helps a country to grow.

Exports on the other hand earn foreign exchange for the country. The foreign money

earned is again used to cope up with the necessary imports.

Foreign trade is all about imports and exports. The products or services traded

between two countries act as backbone of the foreign trade between them. Various

factors make some nations adept at producing certain products at cost effective prices.

These factors may be technological advancement, raw material availability, low labor

cost etc. The ability of some nations to produce goods or provide services what other

nations want, at lower costs and time effectively is what makes foreign trade work.

Though international trade has been in existence since long time, its importance in

world economy has increased tremendously in recent decades. Industrialization,

advanced transportation facilities, globalization, growth of multinational corporations

and outsourcing are the few major factors which have recently given a boom to the

international trade. Increasing international trade is crucial for the continuous

existence of globalization. Absence of international trade will limit the nations to the

goods and services being produced in their own country.

Foreign trade is a very crucial factor. It is very important to follow the exact

procedure for starting international trade. There are number of issues involved in

foreign trade. This may include arranging for various licences and permits for trade.

Some other may be tariffs implemented by some countries to protect their local

industries.

India’s foreign trade

During the independence, the foreign trade of India was typical of a colonial and

agricultural economy. Its trade relations were mainly confined to Britain and other

Common Wealth nations. Exports made from the country were mainly of raw

materials and plantation crops and imports constituted light consumer goods. In last

5

63 years, India‟s foreign trade has undergone a tremendous change in its composition

and direction. The imports today mainly consist of capital goods, petroleum products,

chemicals and raw materials to meet the ever increasing needs of a developing and

diversifying economy while the exports have enhanced to a great extent covering a

large number of traditional and non traditional products.

After independence, till 1990, India‟s foreign trade suffered from strict bureaucratic

and discretionary controls. During these 40 years, the foreign exchange transactions

were also strictly controlled by the Government of India and the Reserve Bank of

India. Since independence, India has always faced deficit in foreign trade. In other

words, the imports in India have always exceeded exports from the country. This is

the characteristic of a developing country struggling for reconstruction and

modernization of its economy.

Later the imports galloped in India due to the increasing requirement of capital goods,

defence equipments, petroleum, raw materials, technological goods etc. But the

exports from country still remained comparatively sluggish due to the lack of

exportable surplus, inflation in country, competition at international market and

increasing protectionist policies of developed countries.

With the start of 1991, the Government of India introduced a series of reforms to

liberalize and globalize the Indian economy. These reforms were oriented towards

integration of the Indian economy with the world economy. Since then, India has

followed cautious approaches towards liberalization ensuring macroeconomic

stability.

6

Chapter 2

Starting Export Business in India

7

Introduction

How to start an Export business is a common question which is frequently asked by

the first time exporters. Export is a very wide concept and lot of preparations are

required before starting this business.

The first step of starting export business is having clear understanding and detailed

knowledge of the product under consideration. The exporter must fully research the

most potential market rather than trying entering each and every market at once. The

exporter should also get familiarize with the state, federal and international laws of

the domestic and target country thoroughly. The exporter also needs to evaluate his

company. What is its production capacity, what is the capital availability with him,

can he compete with the international market etc.

After the exporter has carried out a detailed research, he needs to start the legal

formalities required for starting an export business.

Exporter’s Registration

Directorate General of Foreign Trade

Directorate General of Foreign Trade (DGFT) is the prime authority controlling the

international trade in India. DGFT is set under Ministry of Commerce, Government of

India. It is necessary for each and every exporter to get registered with DGFT. The

DGFT issues a unique Importer Exporter Code (IEC) Number to every trader. No

person or company can trade across international borders unless it has obtained a

valid IEC number from DGFT.

The Export Promotion Councils

Export promotion councils (EPC) are the non profit organizations set under the Indian

Company Act 1956 or Societies Registration Act, 1860. The EPCs work for the

promotion of exports of various goods from India. They work in close association

with the Ministry of Commerce and Industry, Government of India, and act as a

platform of interaction between government and exporters. Thus registering with an

EPC always proves to be beneficial for the exporters.

8

Commodity Board

Commodity board is registered agency designated by Ministry of Commerce,

Government of India. These work for the promotion of export of some special items

like tea, coffee, rubber, tobacco and spices. The exporter if dealing in any of these

items should register with the respective board.

Income Tax Authorities

Goods being exported out of the country are eligible for exemption from sales

tax/VAT and income tax if the proof of exports is submitted to the concerned

authority. Thus it is necessary for each and every exporter to register with the Tax

authorities.

Besides these, the exporter should make sure that the item he is exporting does not

come under prohibited or restricted quota. For this purpose, the exporter can refer the

Schedule 2 of ITC(HS) code of classification. In case the item is under restricted

quota, the exporter should obtain a valid licence from the concerned issuing body.

Sending Export samples from India

The importer/overseas buyer may ask for the sample of goods before placing a

confirm order for exports. Thus it is important for the exporter to use good quality raw

material for manufacturing goods for sample and also maintain the same standards for

consignment also. While sending samples in small quantities, it is preferred to send

them by airway to avoid delay and ensure timely order.

Samples having marking “SAMPLE NOT FOR SALE” are allowed to be exported

without any limit; else the sample value shall not exceed US$ 10,000 per

consignment.

For sending the samples of restricted items, a special permit needs to be obtained

from DGFT.

9

Risk Management in Export

Like any other business, the export business also carries risk. Though the risk

involved in international trade is somewhat different to that of domestic trade. Thus

extra measures and risk management is very important in foreign trade. The various

types of risk involved in international trade are mentioned here.

Credit Risk

Credit risk is the most drastic risk in export business. Any overseas buyer can increase

the risk of late payment, non-payment or even fraud. This is because it is difficult to

verify the creditworthiness and reputation of the importer due to large distance. This

risk can be minimized by assessing the creditworthiness of the importer accurately,

with the help of commercial firms involved in this business.

Quality Rejection Risk

Exported goods may be rejected by the exporter on the basis of poor quality. This is

also done in order to create a pressure on the exporter to negotiate the deal at a lower

price. To avoid the quality rejection risk, the exporter must cross check the following

points:

Send samples to the importer before receiving an order and ensure to maintain

the same quality as that of sample.

Follow the procedure of export inspection carried by the Export Inspection

Council so that only quality goods are shipped.

Transportation and Logistics Risk

The transportation risk like damage to goods and logistics risk like the payment of

insurance and freight are quiet common in trade. Thus the exporter should ensure to

hire experienced and technologically advanced transporters who have developed

expertise in handling cargo. The terms of payment, typically incoterms, should be

clearly mentioned on invoice and all other documents.

Legal and Political Risk

The international laws and regulations of the exporting as well as importing country

keep changing very frequently. Thus the exporter should draft a contract with a legal

10

firm to ensure that his interests are taken care of. The political risks arise due to the

change in government policies and instability in government sector. Thus the exporter

should be flexible enough to adjust according to changes in the legal and political

environment.

Exchange Rate Risk

The exchange rate risk arises due to the fluctuations in exchange rate of the

currencies. There are several hedging instruments available today for the traders to

avoid exchange rate risk.

Packaging and Labelling of Goods One of the most important stages of exports, the packaging and labelling of goods is

carried out after the manufacture or procurement of goods. The packaging not only

prepares for shipment of goods but also decides the acceptance or rejection of the

goods by overseas buyer or Government. Packaging along with making the goods

beautiful also saves a large amount of time and money by saving the goods from

losses caused due to mishandling.

The basic function of packaging is to contain, protect and preserve goods along with

their handling and final presentation to the consumer. The packaging can be either

carried out at the manufacturer company or outsourced to some other packaging

expert company. The advantages of proper packaging are:

Packaging ensures physical protection of goods against shock, temperature,

moisture, dust etc. Protecting fragile goods from shocks is highly important in

international trade.

Packaging provides for agglomeration small objects into one package for the

reason of saving cost and space along with ease of handling.

Proper and attractive packaging attracts a potential buyer toward the product

encouraging him to buy the product.

Packages usually play a vital role in security of goods with the help of

magnetic tags and bar codes.

Easy identification and classification of goods is also accomplished with

proper packaging.

11

Labelling is also an equally important aspect of exports. Exporter should have sound

knowledge of signs and symbols which are used internationally.

The next important aspect of exports is the export documentation which is explained

separately in later chapters.

12

Chapter 3

Introduction to Plastic and

Indian Plastic Industry

13

Introduction to plastic

Plastic is a common term for a wide range of synthetic or semi synthetic organic

amorphous solids. Plastics are typically polymers of high molecular mass and may

contain other substances added to it in order to enhance its strength or to reduce its

price. Plastic is one of the most widely accepted industrial goods.

Plastics are low cost, easy to manufacture, versatile and impervious to water due to

which they are used in an enormous and expanding range of products from paper clips

to space ships. They have displaced several traditional materials such as wood, horn,

stone, bone, leather, paper, glass and ceramic etc in most of their former uses. The

non-biodegradable nature of plastic makes it remain usable for even up to thousand

years of its production.

Plastics are basically of two types; thermosoftening plastic and thermosetting plastic.

A thermosetting plastic can be melted and molded into desired shape only once. Once

they have been molded, they retain their shape and cannot be remolded into another

shape.

On the contrast, the thermosoftening plastics can be remolded again and again into

various shapes. It is a polymer which turns into liquid state when heated and freezes

to a very glassy state when cooled sufficiently. Polypropylene is the best example of

thermosoftening plastic.

14

The Indian plastic industry

The Plastics Industry in India has made significant achievements ever since it made a

modest but promising beginning by commencing production of Polystyrene in 1957.

Soon in 1959, Low Density Polyethylene (LDPE) production also started in India

which was followed by the production of Poly Vinyl Chloride in 1961. High Density

Polyethylene (HDPE) and Polypropylene later on were manufactured in year 1968

and 1978 respectively.

The plastic industry of India has a big market potentiality and is gradually prospering.

This potentiality of the market will surely actuate the entrepreneurs to invest in this

industry. Entrepreneurs are trying to provide high quality plastic products, so that it

becomes a booming industry.

The potential Indian market has motivated Indian entrepreneurs to acquire technical

expertise, achieve high quality standards and build capacities in various facets of the

booming plastic industry. Phenomenal developments in the plastic machinery sector

coupled with matching developments in the petrochemical sector, both of which

support the plastic processing sector, have facilitated the plastic processors to build

capacities to service both the domestic market and the markets in the overseas.

The Indian plastic industry comprises of various injection molding, blow molding,

extrusion and calendaring units which together count around 30,000 in number. The

capacities built in most segments of this industry coupled with inherent capabilities,

has made the Indian plastic industry capable of servicing the overseas markets.

The economic reforms launched in India since 1991, have added further fillip to the

Indian plastic industry. Joint ventures, foreign investments, easier access to

technology from developed countries etc have opened up new vistas to further

facilitate the growth of this industry.

Plastic industry India is symbolizing a promising industry and at the same time

creating new employment opportunities for the people of India. The per capita

15

consumption of plastic products in India is growing and is moving towards 8% GDP

growth.

From a meager export turnover of 16.5 million US$ worth of exports in 1955-56, the

exports from Indian plastic industry has reached around 3200 million US$ in 2006-07.

This data is soon expected to touch 4 billion US$ mark in near future.

Products from the Indian plastic industry are exported to over 150 countries round the

globe with the major trading partners being USA, United Arab Emirates, Italy, United

Kingdom, Belgium, China, Hong Kong, Germany, Saudi Arabia, Singapore, Sri

Lanka, South Africa, Russia, The Netherlands, Turkey, Egypt, France, Australia,

Kenya and Oman.

Table 1 shows the sales figure for year 2008 of various plastic products exported from

India. Figure 1 shows the graphical representation of the data in percentage value of

total exports.

16

S.No. Item Sales in 2007-08

Million US$

Share in Total

Exports in 2007-08

1 Raw Materials 1930.73 55%

2 Molded and Extruded Goods 702.59 20%

3 Woven Sacs and Bags 240.67 7%

4 Other Plastic Products 638.55 18%

TOTAL 3512.54 100%

Table1: Export of plastic items from India

Fig1: Plastics export from India; 2008-09

Source: The Plastics Export Promotion Council

Raw Materials55%Moulded and

Extruded Goods20%

Woven Sacs and Bags7%

Others18%

Sales 2007-2008

17

India’s Major Trade Partners of Plastic

The import of better technology capital goods and machinery has led India towards

production of high quality plastic items. This has also decreased the turnaround time

of production of Indian companies.

The government is also promoting the exporters with the schemes like Export

Promotion Capital Goods with the help of which the exporter can get a relaxation

from the import duties.

The import of better quality raw material and its use by Indian companies has recently

helped the country to establish its name at a higher level in the world market. India

has now got several countries associated which import plastic goods from India to use

in production of finished goods.

The Major trade partners of plastic trade to India are United States of America, China,

United Arab Emirates, United Kingdom, Belgium, Italy etc.

Table 2 shows the list of major countries importing plastic goods from the country

and their percentage of total exports from the country for the year 2008-2009. Figure

2 shows the percentage share of the major trade partners in plastic trade with India for

the year 2008-09.

18

S.No. Item Exports in 08-09

Million US$

Share in Total

Exports in 08-09

1 USA 185.80 19%

2 China 117.66 12%

3 UAE 96.80 10%

4 UK 67.67 07%

5 Belgium 54.98 05%

6 Italy 46.59 05%

7 Saudi Arabia 39.26 04%

8 France 37.50 04%

9 Germany 36.65 04%

10 Brazil 29.88 03%

11 Others 270.41 27%

TOTAL 983.20 100%

Table2: Major countries importing plastic from India

Fig2: Major Plastic Importers from India for Year 2008-09

Source: The Plastics Export Promotion Council

USA19%

China12%

UAE10%

UK7%

Belgium5%

Italy5%

Saudi Arabia4%

France4%

Germany4%

Brazil3%

Others27%

Major Importers

19

Plastic Trade; India and USA

The USA market for plastic bags was dominated by Chinese, Malaysian and Thailand

exporters due to their low cost offer. In 2005, after the levying of Anti Dumping

duties on these three countries, as the goods from these countries had materially

injured US markets, the export opportunity was thrown open to other countries

including India.

Due to the Anti Dumping duty on these competitors, the India‟s total exports which

were around US$ 950 million got a hike of 10-15 percent in following financial years.

Even due to the recession observed recently and a negative growth in USA‟s import it

is yet the largest importer of plastic material from India touching about US$ 185

million.

Table 3 shows the past 3 years data of export of plastic material from India to USA

and Figure 3 shows the data in a graphical form.

20

S.No. Year Sales in 2007-08

Million US$

% change with

previous years value

1 2006-2007 246.25 NA

2 2007-2008 310.54 26%

3 2008-2009 185.8 -40%

Table3: Export of plastic from India to USA in last 3 years

Fig3: India‟s last 3 years trade data of plastic with USA (Million USD)

Source: The Plastics Export Promotion Council

246.25

310.54

185.8

0

50

100

150

200

250

300

350

2006-2007 2007-2008 2008-2009

21

Chapter 4

Polypropylene

22

Introduction

Polypropylene also known as polypropene or PP is a thermo softening polymer. It is

used in wide range of industries including packaging, textile, stationary, reusable

containers, laboratory equipments, automotive components, polymer bank notes and

many more. Polypropylene is usually transformed into final products using extrusion

and molding. Another most common shaping technique is injection molding, which is

used for products such as cups, cutlery, vials, caps, containers, house wares, car

batteries etc.

PP has an intermediate level of crystallinity between that of Low Density Polyethene

(LDPE) and High Density Polyethene (HDPE).

The global turnover recorded for trade of polypropylene goods in year 2007 was

about US$ 65 billion accounting for a volume of 45.1 million tones of material traded

in various forms.

Uses of polypropylene

Polypropylene due to its tough and flexible nature has made its most favorite

industrial product in recent years. It is reasonably economic and widely used. The

major areas where polypropylene is used are:

Due to resistance of PP to fatigues, it is widely used on plastic hinges like than

on flip-top bottles.

PP is used in making piping system for high purity systems.

Strong and rigid piping system meant for use in portable pumping and

hydronic heating and cooling are also made of PP.

PP can withstand high temperatures and pressure in autoclave, which makes it

an ideal material for laboratory and other medical purposes.

Its heat resistance makes it easy to be used in food grade containers and

kettles.

Car batteries, waste baskets, cooler bodies and dishes are also made of PP.

Very thin sheets of PP are used as dielectric in some low-loss RF capacitors.

Though PP is naturally water repellent i.e. hydrophobic, but it is treated to

become hydrophilic and absorb water to be used in diapers and sanitary items.

23

A common application of PP is as Biaxially Oriented PP. These BOPP sheets

are used to make wide range of materials including clear bags. BOPP is crystal

clear and serves as an excellent packaging material for artistic and retail

products.

PP is also used as an alternate to PVC for making insulating cables for

electrification, especially in low ventilation environment.

It is used in making plastic items by injecting heat melted material into mould

of custom shapes, making it easier and cheaper to produce and consume.

PP is also used in treatment of hernia to avoid new hernias. A small patch of

the material is placed over the spot of hernia.

Polypropylene Bags

PP bags are the special bags made from polypropylene used widely around the globe.

These are especially used for packaging products that need to be protected from

moisture. PP bags are usually the woven sacs made of PP thread. The polypropylene

woven sacs and bags contribute to about 7% of the total plastic exports from the

country and is thus an interesting topic to study.

24

Chapter 5

Export Procedure

25

Introduction

An export company should follow stringent government norms and quality standards

while exporting from India to various countries. The first step in carrying out exports

is getting export order from the overseas buyer. After getting the export order, the

goods are manufactured and an Invoice is generated. The invoice contains the invoice

number, details of importer, exporter, port of loading, port of discharge, port of

delivery, details and value of goods, payment terms etc. Along with invoice, a

Packing List is also made which also contains details similar to invoice.

Selection of Shipping Line

The first step in export of goods is selection of appropriate shipping line. It is very

important to select the best shipping line considering various factors like cost

effectiveness, timeliness, trustworthiness etc. First of all, a list of all the shipping lines

which provide the services to concerned destination is made. After this, the short

listing of the shipping lines is done on the basis of factors like freight charged, time of

delivery of goods, safety concerns followed on deck and many more.

Procurement of Container

Once the shipping line is selected the next step is to procure container from the

shipping line. Every shipping line has its own containers which are given to the

exporters on lease basis. The containers are basically of 3 types; 20 feet by 8 feet by

8½ feet which is equivalent to 1 TEU (twenty feet equivalent unit), 40 feet by 8 feet

by 8½ feet which is 2 TEU and 40 feet by 8 feet by 9½ feet which is called high cube

container. The selection of container is done depending upon factors like importers

requirement, quantity of goods being exported etc.

There are two possible ways of procuring container. The exporter can either get it

directly from the shipping line by contacting its local offices or else he may take help

from a Freight Forwarder. Freight forwarder is a third party logistics provider. The

major advantages of hiring a freight forwarder are:

Freight forwarding services guarantee the delivery of goods on time and in

good condition.

26

Freight forwarders have well established contacts with various shipping lines.

This makes the services faster and economic.

In-house resources need not to be involved in logistics management and thus

opting for freight forwarding services avoid unnecessary headache of the

exporter.

Freight forwarders have expertise in supply chain management and handling

of precious and hazardous goods which is beneficial for the exporter.

To procure a container, once the deal between the shipping line and the

exporter/freight forwarder is done, the shipping line issues a Delivery Order. The

delivery order is a letter referred to the concerned authority like ICD, CFS etc. The

delivery order contains the details of exporter and agent along with the container

number. This delivery order when forwarded to the concerned authorities, the

container is issued accordingly. Container is then sent to the factory premises for

stuffing.

Excise Clearance

Once the goods are manufactured and ready to be loaded into the container, the time

for excise clearance comes. It is compulsory for each and every exporter to get the

goods cleared with the central excise department before they can be sent out of the

factory premises. For this purpose the goods are loaded into the container in the

presence of an inspector from central excise department. This assures that the

container contains only those goods in correct quantity as mentioned in the invoice

and packing list. Once the goods are loaded into the container, it is sealed by the

excise inspector.

Custom Clearance

Once the goods are cleared with excise inspector and is sealed, the exporter fills an

Annexure for issue of shipping bill. This Annexure contains details like name of

parties, nature of goods, container number, excise seal number etc. This Annexure

along with delivery order, packing list and invoice is submitted to the customs

department who in turn issue a shipping bill. Shipping bill is a crucial document in

exports. It contains all the details of the goods being exported. Though the shipping

27

bill can be of any length as per the goods, but it has minimum of 3 pages. The first

page of the shipping bill contains the details of importer, exported, invoice number,

value of goods, gross weight and net weight of goods, exporter‟s bank account etc.

The second page contains the details about goods being exported like their nature,

quantity, value etc. The third page of the shipping bill contains the details of container

which is being to export the goods like the container number, its size etc. The

shipping bill number and date of issue of shipping bill can be found on top of all the

pages of the document.

Shipping bill can me either issued manually or with the help of Electronic Data

Interchange.

Shipping bill issued with EDI

Shipping bill under EDI system is printed on a white paper with a watermark of

customs department. Such shipping bill is usually issued in 5 copies if the exports are

being carried under duty free/advance licensing scheme. In case the exporter has

opted for any scheme like DEPB or EPCG, the shipping bill is issued in 6 copies.

These copies are:

Exporter‟s Copy.

Exchange control copy (submitted to RBI).

Custom‟s Copy.

Export promotion copy.

TR1 and TR2 copy.

Duty drawback copy.

Manual Shipping Bill

In case the manual shipping bill is used, it is printed on papers of different colors

depending upon the scheme opted.

Duty Free and Advance License Scheme White

Duty Entitlement Passbook Scheme Blue

Duty Drawback Scheme Green

100% EOU Yellow

28

The custom officer tallies the shipping bill with other documents and the seal on the

container at the time of entry at the port of export.

Issue of Bill of Lading

Bill of lading is a proof of safe custody of the shipping line over the goods. Thus

when a bill of lading is issued, the authority of goods is transferred to the shipping

line. The bill of lading serves as a receipt of goods, an evidence of the contract of

carriage and a document of title to the goods.

To obtain a bill of lading from the shipper, the exporter files a draft bill of lading

which contains all the information and instructions about the shipping bill. The

shipping line issues the first copy of the bill of lading. If there are any errors in the

document made by the shipping line, a new bill is issued without any charge. But if it

is found that the errors in bill of lading have occurred due to the errors made in draft

bill, the charges for issue of rectified document is to be bearded by the

exporter/forwarder.

The issue of bill of lading by the shipping line requires around 2-3 days time. Such

type of bill of lading is called Master Bill of Lading. In case the exporter needs bill of

lading early than this, then the agent can issue him a Forwarded bill of lading whose

value is equal to the master bill of lading. To do so, the agent must compulsorily have

MTO Registration.

Later when the Master bill of lading is issued by the shipping line to the agent, the

same is returned back to former by the agent.

The bill of lading can be of two types:

Received for Shipment (RFS) Bill of Lading

This is issued prior to the shipment of goods when the goods are not shipped but are

in the custody of shipping line. The RFS bill of lading also contains the date when the

goods will be shipped on board.

29

On Board Bill of Lading

This is issued only when the goods are loaded onto the ship and are ready to be

exported. Such bill of lading contains the date of loading of goods along with a note

“on board”.

The bill of lading may grant transshipment rights to the shipper even if the letter of

credit disallows the same.

The number of originals and copies of bill of lading may vary depending upon the

requirements of various parties involved. The originals are usually 3 in number. The

copies of bill of lading are usually marked with “non-negotiable” and can be in any

number depending upon the requirements.

The bill of lading may be „clean‟ or „unclean‟. A clean bill of lading is a proof that the

goods are received in good condition and are not damaged. On the other hand, an

unclean or foul bill of lading is a proof of damaged goods.

Issue of Matte Receipt

Matte receipt is the actual confirmation of export of goods. A matte receipt is only

issued when the ship has sailed away from the port. This is a proof of exports. Matte

receipt is issued by the captain of ship which is delivered to the exporter/agent within

10-15 days of shipment.

30

Chapter 6

The Plastics Export Promotion Council

(PLEXCONCIL)

31

Introduction

The Plastics Export Promotion Council also known as PLEXCONCIL is registered

under the Indian Companies Act and sponsored by The Ministry of Commerce and

Industry, Department of Commerce, Government of India. The PLEXCONCIL

basically represents the exporting community in the Indian plastic industry.

PLEXCONCIL was established in year 1995 after the boom in trade due to the

liberalization in 1991. Just like other export promotion councils, it is also working to

promote exports of plastic products from the country. It is also acting as a facilitator

between the plastic exporters and the Government of India.

The growth of plastic exports from India up to 3200 million US$ mark in 2006-07 is

indicative of dedicated efforts of over 2000 PLEXCONCIL members who are always

in the process for creating a niche for themselves in the world plastic market under the

chairmanship of Mr. Manoj Agarwal.

The PLEXCONCIL is funded by the Government of India after considering various

factors related to its performance.

Roles of PLEXCONCIL

Basic objective of PLEXCONCIL is to boost, promote and provide impetus

for developing Indian exports in plastic sector.

To present India‟s image abroad as a reliable supplier of high quality products.

Encourage and monitor the observance of international standards and

specifications by exporters.

Keep regular check of the trends and opportunities in International markets for

plastic goods and assist its members in taking advantage of such opportunities

in order to expand and diversify exports of plastics.

Functions of PLEXCONCIL

Registration of exporters and issuing Registration-Cum-Membership

Certificate (RCMC).

32

Providing a forum and link between the government and its members for

consideration and implementation of schemes for export production and

marketing.

Arrange distribution of raw materials and provide marketing assistance.

Collection and dissemination of information primarily on export opportunities,

through various media including newsletters, bulletins, letters, telex, fax, etc.

Sponsor and invite business delegations and sales teams, for exploring markets

for export development of plastics.

Fixation of floor price (minimum export price) or recommendation of the

same to the govt.

Arrange and participate in buyer-seller meets, exports or trade fairs and

exhibitions in India and abroad.

Foreign publicity of Indian plastic goods through schemes (like Joint Foreign

Publicity) in overseas market.

Recommending the formulation and implementation of export assistance

schemes like drawback rates.

Membership of PLEXCONCIL

Any exporter dealing in plastic products may apply for membership through

application to the registering authority.

A self certified copy of the IEC Number issued by the licensing authority

concerned is enclosed therewith application.

It should also be supported by Bank certificate as a proof of the applicant‟s

financial soundness.

The application shall be considered and disposed of within 1 month thereof in

accordance with the rules and regulations of the PLEXCONCIL.

On being admitted to the membership, the applicant is granted an RCMC (as

per format in appendix 19B).

In case an exporter desires to get registration as a manufacturer exporter, he

shall furnish evidence to that effect.

Prospective or potential exporters may also, on application, register and

become an associate member of PLEXCONCIL.

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Conclusion

34

Conclusion

The practical world is far more different than the theoretical world. Learning new

things while working in practical and professional world makes one more efficient

and responsible.

Quality is a very important aspect of trade. The company should take each and

every measure to maintain quality which will give an increment to the

customer satisfaction.

Starting export business in India is not a difficult task. With the proper

knowledge and strategy, one can lead the way to worldwide success.

Plastic exports in itself carry very huge scope and is a good product to trade in.

Government is trying each and every step to boost exports from the country.

Proper knowledge of Government schemes and promotion councils can direct

you towards a successful export business.

35

References

36

References

S.No. Reference

1

http://www.wisegeek.com/what-is-freight-forwarding.htm

2 http://www.export911.com/e911/ship/docBL.htm

3 http://www.export911.com/e911/ship/versusBL.htm#xReceived

4 http://en.wikipedia.org/wiki/Plastic

5 http://en.wikipedia.org/wiki/Thermoplastic

6 http://en.wikipedia.org/wiki/Polypropylene

7 http://www.indianplasticportal.com/plastic-industry-overview/

8 http://www.wisegeek.com/what-is-foreign-trade.htm

9 http://en.wikipedia.org/wiki/International_trade

10 http://www.easternbookcorporation.com/moreinfo.php?txt_searchstring=11921

11 http://www.tirupatibalajee.com/index.html

12 http://www.tirupatibalajee.com/quality-assurance.html

13 http://www.tirupatibalajee.com/team.html

14 http://www.infodriveindia.com/Exim/Guides/How-To-Export/Ch_1_Starting_Export_Introduction.aspx

15 http://dgft.delhi.nic.in/

16 http://en.wikipedia.org/wiki/ISO_9000

17 http://www.plexconcil.com/

18 http://www.iso.org/