Final Year Project
Final Year Project
May 2024
DECLARATION
BUSINESS ADMINISTRATION.
DATE:
BONAFIDE CERTIFICATE
ACKNOWLEDGEMENT
To acknowledge here, all those who have been a helping hand in completing this
project, shall be an endeavor in itself
Er. A.C.S. ARUN KUMAR, B.E. I express my sincere thanks to our Secretary Thiru A.
RAVIKUMAR and our Vice Chancellor DR.S.GEETHALAKSHMI, I would like to take the
opportunity to express my profound gratitude to Dr. G BRINDHA, Professor & head, and my
project guide, Faculty of Management Studies, for her kind permission to undergo project
work successfully.
I thank NAGARAJAN KV of NARPAVI LOGISTICS PVT LTD for guiding and supporting
throughout my project
I owe my wholehearted thanks and appreciation to entire staff of the company for their
cooperation and assistance during the project.
PARTHASARATHY KN
CHAPTER TITLE PAGE PAGE
ABSTRACT
CHAPTER 1
Company Profile
Sample size
CHAPTER – 5
5.1 FINDINGS
5.2 SUGGESTION
5.3 CONCLUSION
REFERENCES
Questionnaire
CHAPTER :1
Freight forwarding and customs house agents play pivotal roles in the global logistics and
supply chain management process. Essentially, they act as intermediaries between businesses
or individuals and the complex network of shipping, transportation, and regulatory authorities
involved in moving goods across borders.
Freight Forwarding:
Freight forwarding involves the coordination and facilitation of the transportation of goods
from one place to another. Freight forwarders serve as intermediaries between shippers and
carriers, organizing the movement of goods via various modes of transport such as air, sea,
road, or rail. Their responsibilities typically include negotiating freight rates, arranging
transportation, preparing shipping documentation, tracking shipments, and managing customs
clearance procedures. Essentially, they streamline the logistics process, ensuring that goods
are delivered efficiently and cost-effectively to their destination.
Customs house agents, also known as customs brokers, specialize in navigating the complex
customs clearance process. They act on behalf of importers and exporters to ensure
compliance with customs regulations and facilitate the smooth movement of goods across
international borders. Their expertise lies in preparing and submitting the required
documentation, such as import/export declarations, Shipping bill, duty calculations, and other
regulatory paperwork, to customs authorities. Additionally, they assist clients in resolving
customs issues, handling inspections, and navigating the complexities of tariffs and trade
agreements.
Both freight forwarders and customs house agents (CHAs) play critical roles in facilitating
international trade by providing a range of services, including:
1.Logistics Coordination:
Coordinating the movement of goods from origin to destination, optimizing routes, and
selecting the most efficient modes of transportation.
2.Documentation Management:
Ensuring that all necessary paperwork, such as bills of lading, commercial invoices, Packing
list, certificate of origin and customs declarations, is accurately prepared and submitted in
compliance with regulatory requirements.
3.Customs Clearance:
4.Risk Management:
Mitigating risks associated with shipping, such as delays, damages, or regulatory penalties,
by providing expertise and guidance throughout the logistics process.
Providing real-time tracking and visibility of shipments, allowing clients to monitor the status
and location of their goods throughout the transportation process.
INDUSTRY PROFILE
Documentation in freight forwarding is the vital administrative backbone of global trade
logistics. Considering and planning the most effective route for freight. Organising the
transportation of freight between intermediate destinations – usually cargo terminals, port
facilities or railway yards. Tracking the movement of freight using software and satellite
technology. Key documents like the Bill of Lading, Commercial Invoice, and Customs
Declaration play pivotal roles, but the industry faces challenges due to complexities, manual
processes, and evolving regulations. Embracing digitalization, exploring block chain, and
advocating for data standardization are the trends reshaping this crucial facet of freight
forwarding, enhancing efficiency and accuracy in a rapidly changing landscape.
The freight forwarding market refers to the industry that provides logistics services for the
transportation of goods from one location to another. Freight forwarders act as intermediaries
between shippers and carriers, arranging the movement of goods by air, sea, rail or road.
IMPORT PROCESS:
BILL OF LADING
BILL OF LADING:
A bill of lading is a legal document issued by a carrier to a shipper that details the type,
quantity, and destination of the goods being carried. A bill of lading is a document of title, a
receipt for shipped goods, and a contract between a carrier and a shipper.
A Master Bill of Lading is issued by the owner or operator of a ship (carrier). It consists of
the transport contract between the shipper (owner of goods in transit) and the carrier (operator
of a mode of such transit). it represents the contract of carriage for the goods.
A house bill of lading is legal proof of a contract between the consignee and the carrier
company. It acts as a legal slip or acknowledgment that the carrier has received the
consignment for shipment. It is also an assurance that the consignment is damage-free and
ready to be shipped to the consignee.
→CFS MOVEMENT:
Freight Forwarders have to get approval from liner for the CFS (Container Freight Station) movement
and for the CFS nomination. (EG) VIKING: INMAA1VIK1
MANIFEST:
It is necessary for freight forwarders to MAIFEST MBL and HBL, and confirmation of CFS
nomination should occur before manifesting.
CHECKLIST:
Last 3 to 5 days before eta, liners will fill igm and we have to do spilt for that igm. And check
through ice gate (IGM status). Following the split, the CHA(Customs House Agent)
procedure will begin.
CHA PROCESS:
After the IGM processed
COMMERCIAL INVOICE
COMMERCIAL INVOICE
The commercial invoice is one of the most important documents in international trade and
ocean freight shipping. It is a legal document issued by the seller (exporter) to the buyer
(importer) in an international transaction and serves as a contract and a proof of sale between
the buyer and seller.
PACKING LIST
PACKING LIST
A packing list itemizes the contents of each package (box, pallets, etc). It includes weights,
measurements and detailed lists of the goods in each package. The packing list should be
included in carton or package, and can be attached to the outside of a package with a copy
inside.
A packing list is a document used for customs declaration that identifies the quantity, weight,
dimensions, and carton count of the shipped products.
3.NEED TO UPLOAD THE CHECKLIST IN ICEGATE PORTAL TO GET BOE
4. AFTER (BOE) BILL OF ENTRY FILED.
C. After register CHA will show the cargo to examine officer, they will check our cargo
based on documents.
D. After examined, officer will provide examination report and forward BOE (Bill of Lading)
to Appraiser officer (AO) in ICES portal.
E. (AO) APPRAISER OFFICER will provide (OOC) OUT OF CHARGES after checked the
documents and examination report which was forwarded by (EO) Executive Officer.
(OR)
B. If went to (RMS) Risk management system, (AO) Appraiser officer will provide (OOC)
Out of Charges based on E-SANCIT documents.
INVOICE:
Enter the liner name and all the required information, then click the submit button.
Once submitted, we must verify that the Invoice has been released.
When this page opens, click More. To change the status to All, click Submit.
Once when this page open we may view the released status on this page.
PAYMENT CONFIRMATION:
we will make payment for liners through mail or ODEX. Based on liner.
DELIVERY ORDER(DO):
Click D/O.
Enter the liner name and all the required information, then click the submit button.
Once submitted, we must verify that the D/O has been released.
When this page opens, click More. To change the status to All, click Submit.
Once when this page open we may view the released status on this page.
We will receive (D/O) Delivery Order, Empty D/O in ODEX or in liner office.
After OOC (PO) Preventive Officers will allow to be passed out the cargo based on (OOC)
Out of Charges and (D/O) Delivery Order received from liners
CHA will provide transportation for cargo pickup from (CFS) Container Freight Station and
gate out the vehicle based on permerited of (PO) and the same vehicle we will move to the
consignee location.
After destuffed the cargo in consignee factory the empty container we must return back to
Empty yard which was liner nominated yard. (within the free period) if not off load within
period liner will collect detention charges of container.
COMPANY PROFILE
INTRODUCTION OF THE COMPANY
Narpavi Logistics Private Limited started its journey in 2019 with an experience of two
decades as individual service provider, and within a short period we could archive our
recognition in the Global Market. Our team of experts now render a very consistent and
dedicated service to the customers and have become a most sought after service provider.
We adhere to the International Standard of Service Quality to all our customers by offering
innovative supply chain solutions through Air, Sea, Warehouse etc.,
HISTORY OF THE COMPANY
With a team of experienced professionals, Narpavi Logistics ensures that all cargo is handled
with utmost care and delivered on time .The company's dedication to customer satisfaction
has earned them a reputable name in the logistics industry.
From small businesses to large corporations, Narpavi Logistics has been a trusted partner in
transporting goods across the country. With its state-of-the-art facilities and advanced
technology, the company continues to grow and expand its services, making it a top choice
for all cargo handling needs. Read Less
Registered business Activity of Narpavi Logistics Private Limited is Transport, storage and
Communications.
→Sivakumar Thirunavukkarasu
→ Lakshmi Narasimhan Raghavan
→Katchikidambi Muralidharan Padmaja
The longest serving directors currently on board are Sivakumar Thirunavukkarasu and
Lakshmi Narasimhan Raghavan who were appointed on 10 September, 2020. They have been
on the board for 3 years and 7 months. The most recently appointed director is Katchikidambi
Muralidharan Padmaja, who was appointed on 12 August, 2021.
Sivakumar Thirunavukkarasu has the largest number of other directorships with a seat at a
total of 2 companies. In total, the company is connected to 1 other companies through its
directors.
VALUES
VISION
MISSION
OBJECTIVES OF STUDY
Objectives of the study:
PRIMARY OBJECTIVES:
• To study on the role of Custom House Agent and Freight forwarding on handling import
process.
• To study and analyse the Custom House Agent and Freight forwarding in NARPAVI
LOGISTICS PVT LTD.
SECONDARY OBJECTIVES:
• To examine the various facilities provided by the CHA and freight forwarders to the
customer.
• To analyse the problems faced by the CHA and FRIGHT FORWARDERS throughout the
shipment
Need for the study:
• To study the operational features of the CHA from receipts of documents and till to
Customs clearance.
•To study the operational features of the freight forwarding from CFS movement, manifest
till to the DO process.
• To analyse the nature of work / business process of CHA and Freight forwarding.
• To understand the essential endorsements and documents obtained by CHA and freight
forwarding.
DOCUMENTS:
• Invoice
• Packing List
• Certificate of origin
• Bills of lading
• Shipping bill
• Health certification
Customs Clearance Process: Facilitate the smooth clearance of goods through customs
checkpoints by submitting accurate documentation, paying duties and taxes, and obtaining
necessary clearances or permits.
Documentation and Paperwork: They handle the documentation and paperwork involved
in international trade, such as bills of lading, invoices, certificates of origin, and
export/import permits, ensuring compliance with legal requirements.
Tracking and Monitoring: Freight forwarders utilize technology to track and monitor
shipments in real-time, providing clients with visibility into the status and location of their
goods throughout the transportation process.
• Keeping up with changing customs rules is tough for CHAs and freight forwarders.
• Freight forwarders rely on other companies for transportation, which can lead to issues if
things go wrong.
• Freight forwarders and Customs house agent can't control everything in the supply chain,
like manufacturing, causing potential delays.
• Changes in prices and exchange rates can affect profits for CHAs and freight forwarders.
• New technology can be expensive and difficult to implement for some companies.
• Competition in the industry can drive prices down, making it hard to make a profit.
• Ensuring goods stay safe during shipping can be challenging and costly for CHAs and
freight forwarders.
CHAPTER :3
Research Methodology
RESEARCH DESIGN:
A research design is the arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
The research design is the conceptual structure within which research is conducted.
DATA ANALYSIS:
One of the simplest methods of analysis of the percentage method. It is the traditional
statistical tools. Through the use of percentage data are reduced in the standard from with the
base equal to 100 which facilities relative comparison. In the study the percentage analysis is
been used for interpretation. It was used to analyze and interpret the data by representing
them through tables and charts.
The formula used:
► SAMPLE SIZE
While deciding about the method of data collection for the researcher should keep in mind
there are two types of data collection.
► PRIMARY DATA:
• The primary data are those which are collected fresh and for the first time and thus
happen to be original in character.
► SECONDARY DATA:
• The secondary data are those which have already been collected by someone else and
which already have been passed through the statistical process. The secondary data have been
collected from the company records.
CHAPTER 4
GENDER OF RESPONDENTS
Gender
50% 50%
Interpretation:
From the above chart, it is evident that 50% of the respondents were Of Female, 50% of the
respondents were Male.
INFERENCE:
Both male and female are equal percentage of the respondents.
MARTIAL OF RESPONDENTS
Marital Status
20%
80%
Interpretation:
the above chart shows that out of 100 respondent, 20% respondent are married, 60% of
respondent are unmarried.
INFERENCE:
Education Qualification
5% 5%
45%
45%
SSLC HSC UG PG
Interpretation:
the above chart shows that out of 100 respondent, 45% respondent of qualifications are PG,
45% of respondent of qualifications are UG , Both HSC and SSLC respondents of
qualifications are 5%.
INFERENCE:
Majority (45%) of the respondents are UG and PG.
Age Group
10%
20%
10%
60%
10 to 20 21 to 30 31 to 40 ABOVE 40
Interpretation:
the above chart shows that out of 100 respondent, 60% respondent are 21 to 30 age group,
20% of respondent are 10 to 20 age group, 10% respondent are 31 to 40 age group, 10%
respondent are above 40 age group.
INFERENCE:
Majority (60%) of the respondents are in 21 to 30 age group.
10%
30%
60%
Interpretation:
the above chart shows that out of 100 respondent, 60% respondent are AGREE, 30% of
respondent are NEUTRAL, 10% respondent are STRONGLY AGREE.
INFERENCE:
10%
40%
50%
Interpretation:
the above chart shows that out of 100 respondent, 50% respondent are AGREE, 10% of
respondent are NEUTRAL, 40% respondent are STRONGLY AGREE.
INFERENCE:
20% 20%
10%
50%
Interpretation:
the above chart shows that out of 100 respondent, 50% respondent are AGREE, 10% of
respondent are NEUTRAL, 20% respondent are STRONGLY AGREE, 20% of respondent
are DISAGREE.
INFERENCE:
5% 5%
20%
70%
Interpretation:
The above chart shows that out of 100 respondent, 20% respondent are AGREE, 5% of
respondent are NEUTRAL, 70% of respondent are STRONGLY AGREE, 5% of respondent
are DISAGREE.
INFERENCE:
10% 10%
30%
50%
Interpretation:
The above chart shows that out of 100 respondent, 50% respondent are AGREE, 30% of
respondent are NEUTRAL, 10% of respondent are STRONGLY AGREE, 10% of respondent
are DISAGREE.
INFERENCE:
10%
10%
50%
30%
Interpretation:
The above chart shows that out of 100 respondent, 30% respondent are AGREE, 10% of
respondent are NEUTRAL, 50% of respondent are STRONGLY AGREE, 10% of respondent
are DISAGREE.
INFERENCE:
30%
60%
10%
Interpretation:
The above chart shows that out of 100 respondent, 10% respondent are AGREE, 30% of
respondent are NEUTRAL, 60% of respondent are STRONGLY AGREE.
INFERENCE:
10%
30%
40%
20%
Interpretation:
The above chart shows that out of 100 respondent, 40% respondent are AGREE, 20% of
respondent are NEUTRAL, 10% of respondent are STRONGLY AGREE, 30% of respondent
are DISAGREE.
INFERENCE:
10%
30%
40%
20%
Interpretation:
The above chart shows that out of 100 respondent, 40% respondent are AGREE, 20% of
respondent are NEUTRAL, 10% of respondent are STRONGLY AGREE, 30% of respondent
are DISAGREE.
INFERENCE:
10%
90%
Interpretation:
The above chart shows that out of 100 respondent, 30% respondent are AGREE, 30% of
respondent are NEUTRAL, 30% of respondent are STRONGLY AGREE, 10% of respondent
are DISAGREE.
INFERENCE:
20%
50%
20%
10%
Facilitating customs clearance procedures Handling documentation for import and export
Ensuring compliance with customs regulations All of the above
Interpretation:
The above chart shows that out of 100 respondent, 50% respondent are All the above, 20%
of respondent are Handling documentation for import and export, 10% of respondent are
Ensuring compliance with customs regulations, 20% of respondent are Facilitating customs
clearance procedures.
INFERENCE:
20%
60% 20%
Interpretation:
The above chart shows that out of 100 respondent, 60% respondent are Obtaining a license
from the relevant regulatory authority, 20% of respondent are Passing a licensing exam conducted
by customs authorities, 20% of respondent are A degree in international trade.
INFERENCE:
Majority (60%) of the respondents are Obtaining a license from the relevant regulatory authority.
TECHNOLOGIES ARE BEING ADOPTED BY CUSTOMS HOUSE
AGENTS TO ENHANCE EFFICIENCY
10%
10%
10%
70%
Interpretation:
The above chart shows that out of 100 respondent, 70% respondent are All the above, 10%
of respondent are Electronic Data Interchange (EDI), 10% of respondent are Automated
Customs Clearance Systems, 10% of respondent are Blockchain technology for secure
documentation.
INFERENCE:
20%
50%
20%
10%
Interpretation:
The above chart shows that out of 100 respondent, 50% respondent are All the above, 20%
of respondent are Regular training of staff on regulatory updates, 10% of respondent are
Conducting thorough document audits, 20% of respondent are Utilizing compliance
management software.
INFERENCE:
20% 20%
20%
40%
Interpretation:
The above chart shows that out of 100 respondent, 20% respondent are All the above, 40%
of respondent are Optimizing operational efficiency, 20% of respondent are Negotiating
lower tariffs with customs authorities, 20% of respondent are Offering value-added services.
INFERENCE:
10%
40%
40%
10%
Providing personalized customer service Regular communication and updates on shipment status
Offering advisory services on trade regulations All of the above
Interpretation:
The above chart shows that out of 100 respondent, 40% respondent are All the above, 10%
of respondent are Providing personalized customer service, 40% of respondent are Regular
communication and updates on shipment status, 10% of respondent are Offering advisory
services on trade regulations.
INFERENCE:
Both All the above and Regular communication and updates on shipment status are majority
ROLE DOES TECHNOLOGY PLAY IN THE OPERATIONS OF CUSTOMS
HOUSE AGENTS
10%
20%
50%
20%
Interpretation:
The above chart shows that out of 100 respondent, 50% respondent are All the above, 10%
of respondent are Streamlining documentation processes, 20% of respondent are Enhancing
tracking and visibility of shipments, 20% of respondent are Improving communication with
customs authorities.
INFERENCE:
20%
50%
30%
Interpretation:
The above chart shows that out of 100 respondent, 50% respondent are All the above, 30%
of respondent are Conducting regular training programs for staff, 20% of respondent are
Monitoring regulatory updates through industry associations.
INFERENCE:
10%
20%
60%
10%
Interpretation:
The above chart shows that out of 100 respondent, 60% respondent are All the above, 10%
of respondent are Implementing green logistics practices, 20% of respondent are Ensuring
proper disposal of hazardous materials, , 10% of respondent are Promoting eco-friendly
transportation modes.
INFERENCE:
20%
60% 20%
Interpretation:
The above chart shows that out of 100 respondent, 60% respondent are All the above, 20%
of respondent are Increasing regulatory complexity, 20% of respondent are Intense
competition in the industry.
INFERENCE:
• Majority (60%) of the respondents are agree for primarily responsible for the transportation
of goods of respondents.
• Majority (50%) of the respondents are agree for cha handle documentation and regulatory
compliance for the import and export of respondents.
• Majority (50%) of the respondents are agree for freight forwarders responsible for the
physical movement of goods across borders of respondents.
• Majority (70%) of the respondents are strongly agree for customs clearance an essential step
in the international trade process of respondents.
• Majority (50%) of the respondents are agree for freight forwarding companies typically
offer warehousing and distribution services of respondents.
• Majority (50%) of the respondents are strongly agree for cha stay updated with the latest
import and export regulation of respondents.
• Majority (60%) of the respondents are strongly agree for technology play a significant role
in optimizing the operations of freight forwarding.
• Majority (40%) of the respondents are agree for freight forwarding and customs clearance
services usually outsourced by companies engaged in international trade.
• Majority (40%) of the respondents are agree for ffc and cha subject to regulations
depending on the countries they operate in.
• Majority (90%) of the respondents are strongly disagree for freight forwarding companies
will not collaborate with various transportation carriers to ensure timely delivery of goods.
• Majority (60%) of the respondents are Obtaining a license from the relevant regulatory authority
for the licensing requirements for customs house agents.
• Majority (70%) of the respondents are All the Technologies are being adopted by customs
house agents to enhance efficiency.
• Majority (40%) of the respondents are Optimizing operational efficiency for cha
competitive pricing with maintaining profitability.
• Majority (40%) of the respondents are All the above and Regular communication and
updates on shipment status are majority for cha build and maintain relationships with clients.
• Majority (50%) of the respondents are ALL THE Technologies for role does technology
play in the operations of customs house agents.
• Majority (50%) of the respondents are all the related to trade policies and regulations for
customs house agents adapt to changes in trade policies and regulations.
SUGGESTIONS.
FORWARDING industry.
• Collaborate with other customs agents to share knowledge and best practices
• Use technology to track where shipments are and share that info with
customers.
• Always look for ways to do things better and learn from mistakes.
the client.
CONCLUSION:
This present study revealed the factors affecting the forwarding and custom
process. Freight forwarding is the business that specialize in lowering costs and
facilitating the logistics of transportation whereas custom clearance facilitates
the export or import throughout the country’s, representing the clients during
examination, assessment, payment of duty and delivery of cargo from customs
after clearance. The variable of evaluation of forwarding and custom process
such as time, cost and communication. The factors such as time, cost and
communication, plays a major role in evaluating the forwarding and custom
process. Hence, if the company will try to follow the given suggestions and
recommendations then they can resolve the factors affecting the process and
improve their process more in future.
QUESTIONNAIRE
1.Full Name
2.Gender
3.Martial Status
4.Educational Qualifications
a) SSLC b) HSC c) UG d) PG
5.Age Group
a)10 to 20 b) 21 to 30 c) 31 to 40 d) Above 40
6. Is freight forwarding primarily responsible for the transportation of goods from one
location to another?
7. Do customs house agents handle documentation and regulatory compliance for the import
and export of goods?
8. Are freight forwarders responsible for the physical movement of goods across borders?
Answer: Agree
9. Is customs clearance an essential step in the international trade process?
10. Do freight forwarding companies typically offer warehousing and distribution services?
Answer: Agree
11. Are customs house agents required to stay updated with the latest import and export
regulations?
13. Are freight forwarding and customs clearance services usually outsourced by companies
engaged in international trade?
Answer: Agree
14. Are freight forwarding companies and customs house agents subject to different sets of
regulations depending on the countries they operate in?
15. Do freight forwarding companies will not collaborate with various transportation carriers
to ensure timely delivery of goods?
18.What technologies are being adopted by customs house agents to enhance efficiency?
19.What strategies do customs house agents employ to ensure compliance with import/export
regulations?
20.How do customs house agents balance competitive pricing with maintaining profitability?
21.How do customs house agents build and maintain relationships with clients?
22.What role does technology play in the operations of customs house agents?
23.How do customs house agents adapt to changes in trade policies and regulations?
24.How do customs house agents ensure compliance with environmental regulations and
sustainability standards?
25.What are the main challenges faced by customs house agents in today's business
environment?