A

Project Report
On
“A STUDY ON EXPORTER PROFITABILITY BY
GOVERNMENT INCENTIVE”
AT
MAGNAS
(Consulting, Trading & Logistics)
Submitted to
SAVITRIBAI PHULE UNIVERSITY
For the partial fulfilment Of The
Requirement For The Award of Degree
Of
MASTER OF BUSINESS MANAGEMENT (MBA)
Submitted by
Mr. Gaurav Sitaram Chavan
Under the Guidance of
Prof. Sheetal Sarnotte

SKN SINHGAD SCHOOL OF BUSINESS MANAGEMENT

AMBEGAON BK PUNE

Academic Year (2022-2024)

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 DECLARATION

I, the undersigned, hereby declare that the project report entitled “A Study of
Exporters profitability by Government Incentive” of written and submitted by me to the
Savitribai Phule Pune University, Pune in partial fulfilment of the requirement for the award
of degree of MBA under the guidance of “Prof. Sheetal Sarnotte” is my original work except
the topics on organizational profile and the conclusion drawn there in are based on the material
collected myself.

Place: Pune
Date:

STUDENT NAME
Gaurav Sitaram Chavan

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 ACKNOWLEDGEMENT

I take this opportunity and privilege to express my deep sense of gratitude to DR.
Prachi Pargaokar Director of S.K.N Sinhgad School Of Business Management, Pune Who
has been inspiration to me throughout the academic year. The successful completion of this
project would not have been possible without help of assistant that was received from various
direcions. A special thanks to my Mentoring and Guidance Prof. Sheetal Sarnotte for his
support during the preparation of this report.

I would like to thank Mr. Dinesh Deore (Business Head) and Leena Hittalmani (Team
Leader) of Magnas Consulting , Bavdhan for Guiding me through the project and providing
any resources required for the making of this report.

Place: SKN Sinhgad School of Business Management, Pune

Date:
STUDENT NAME
Gaurav Sitaram Chavan

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 CONTENTS

Chapter Title Page No.

No
Chapter 1
1.1 Executive summary
1.2 Introduction
1.3 Limitation and Scope of the study
Chapter 2
2.1 Profile Of the Organization
2.2 Structure of the Organization
2.3 Conceptual Background
Chapter 3
3.1 Literature Review
Chapter 4
4.1 Project/Research Methodology
Chapter 5
5.1 Data Presentation
5.2 Data Interpretation and Analysis
Chapter 6
6.1 Findings
6.2 Suggestions
6.3 Learning through project
6.4 Conclusion
Chapter 7
7.1 Bibliography

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 CHAPTER : 1

1.1 EXECUTIVE SUMMARY

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 EXECUTIVE SUMMARY

Magnas ( Consulting, Trading and Logistics) is the object of encouraging exports by

facilitating the Export Incentive processes. This company is working in this domain more than
5 years. The Project title is “To Study of Exporter Profitability by Government Incentive
with the reference of Mangas ( Consulting, Trading and Logistics), Pune. This project
carried out in September, October and November under the guidance of Prof. Mayuri Yadav
and Mr. Dinesh P. Deore ( Head of Business, Magnas Consulting, Trading and Logistics,
Bavdhan.)

The main objective of this project is to understand the total Profitability of Exporter.
The Exporter Profit is related on the Product incentive. Government is give the incentive too
the exporter for the gain Forex currency in India for the reference of growing the Indian
Economy in India. This project also has to analyze the Government Incentive to Exporter in
India

The data collected in this project is from both internal as well as from external sources.
Internal sources includes the direct interaction with the staff of the company, company records.
External sources for the data are various books, sites on the export market analysis.

This project report gives brief knowledge about the Exporter profits and their expenses
on exporting the Goods. The exporter Paid the custom duty charges on the exporting Good. It
also givesthe knowledge of government incentive to exporter in India. This report also helps
to study and analyze HS code and its relation with the Products and Goods.

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1.2 INTRODUCTION

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1.2.1. INTRODUCTION

International trade is the exchange of capital, goods and service across international
borders or territories. In most countries, such trade represents a significant share of gross
domestic product (GDP). While international trade has existed throughout history, its
economic, social and politicalimportance has been on the rise in recent centuries.

A Product that is sold to the global market is an export, and a product that is bought
form the global market is an import. Imports and exports are accounted for in a country’s
current account inthe balance of payments.

Industrialization advanced technology, including transportation Globalization,

multinationalcorporation, and outsourcing are all having a major impact on the international
trade system.
Increasing international trade is crucial to the continuance of globalization. Without
internationaltrade, nations would be limited to the goods and services produced within their
own borders.

International trade is in principle not different from domestic trade as the motivation
and the behavior of parties involved in a trade do not change fundamentally regardless of
whether trade is across a border or not. The main difference is that international trade is
typically more costly than domestic trade. The main reasons in that a border typically imposes
additional costs such as tariffs,time cost due to border delays and costs associated with country
differences such as language the legal system or culture.

Another difference between domestic and international trade is that factors of

production such ascapital and labor are typically more mobile within a country than across
countries. Thus internationaltrade is mostly restricted to trade in goods and services and only
a lesser extent to trade in capital labor or other factor of production. Trade in goods and service
can serve as a substitute for trade in factors of production. Instead of importing a factor of
production a country can import goods that make intensive use of that factor of production and
thus embody it.

An example is the import of labor intensive goods by the united state from China.
Instead of importing Chinese labor, the united states imports goods that were produced with
Chinese labor. One report in 2010 suggested that international trade was increased when a
country hosted a network of immigrants, but the trade effect was weekend when the immigrants
became assimilated into their newcountry.
International trade is also a branch of economics which together with international
finance, formsthe larger branch called international economics.

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Advantages & Benefits of Exporting

Ownership advantage are the firm’s specific assets. International experience and ability
to develop either low-cost or differentiate products within the contacts of its value chain. The
locational advantages of a particular market are a combination of market potential and
investment risk.
Internalization advantages are the benefits of retaining a core competence within the
company and threading it though the value cahin rather than to license, outsource, or sell it.
Exporting requires significantly lower level of investment than other modes of international
expansion, such as FDI. Asyou might expect, the lower risk of export typically results in a
lower rate of return on sales than possible though other of international business. In other
words, the usual return on export sale may not be tremendous, but neither is the risk. Exporting
allows managers to exercise operation control but does not provides them the option to exercise
as much marketing control. An exporter usually resides far from the end consumer and often
enlists various intermediaries to manage marketing activities.

Exporting offers plenty of benefits and opportunities, including:

Access to more consumers and businesses. If you’re only doing business in this country,
youmay be limiting the total potential profits you could earn on opportunities to expand your
business worldwide.
Diversifying market opportunities so that even if the domestic economy begins to falter,
youmay still have other growing markets for your goods and services.
Expanding the lifecycle of mature products. If the domestic market seems saturated for
yourgoods and services, you can introduce them to new markets in other parts of the world.
Potential financing assistance from U.S. government agencies through loan guarantees
thatcan help fund your exporting initiatives.

Of course, there are some complexities that come from exporting. These include: more
paperwork, potential added financial risk, cultural and language barriers, possible requirements
that you modifyyour product packaging, among others.
Some small businesses are ready to export, whereas others may need help assessing
their opportunities. If you’re ready to consider exporting, there are many resources that can
help you makea decision and get you started.

Objective of the study

 To understand the maximum Exports & Export Products from Maharashtra.
 To study & understand the HS code and its connection with special reference to
product.
 To analyse the government exporter incentive scheme in India.
 To analyse the exporter profit margin by government incentive scheme.

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1.3. Limitation & Scope of the study

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LIMITATION OF THE STUDY

 The study was limited to international trade only.

 The project is mostly focused on various types of exporter and their products.
 In this project various exporters which incentive scheme his to apply by government.

SCOPE OF THE STUDY

Government has made every efforts to increase to export, and raise the volume and
value of exports. For the purpose of various scheme have been evolved under custom and
central excise acts totranslate this principle. They are just duty neutralization and remission
schemes.

As a part of project some scheme which are applied in organisation were studied. The
projectis prove that the government had gives the incentive to the exporter on their products or
HS Code.

GEOGRAPHICAL SCOPE

 The study was conducted in the city of Nashik, Pune And Mumbai.
 The scope of the study is to analyses the exporter incentive and their profit margin on
their HScode.
 The main Scope of the study how was the government gives the incentive to exporter
andtheir uses of Export and Import.

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 Chapter 2
Profile of the Organization

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COMPANY PROFILE :

Name of company :Magnas ( Trading, Consulting

& Logistics )
Year of Establish : 2016
Website : www.magnasconsulting.com
E-Mail : [email protected]
Contact : +91 8956131801
Office :
Magnas Office Pune

706, Bramhacorp Vantage Tower C, NDA Pashan Rd, Pune, Maharashtra

411021
Phone : +91-20 4075 3413

Magnas office Mumbai

2908, Plan S Business Park, Opp. DY Patil Stadium, nerul, Navi Mumbai, Maharashtra
400706.
Phone : +918956131801

Magnas office Nashik

405, Business centre, tidke colony link Road, Govind Nagar, Nashik 422009 Phone :
+91 895613801

Work & Service

The object of encouraging exports by facilitating the Export Incentive processes.
Further, considering the need of the small businesses for assistance in their non-core functions,
Magnas has extended its expertise and services in areas such as Sale of Duty Credit Scrip, and
Custom Clearing & Freight Forwarding, FEMA Compliance and Liaison with the Banks for
generation of BRC.

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2.2.CORPORATE PROFILE.

As one of the leading Consulting, Trading And Logistics Services in India. We are
working inthis domain from more than 5 years. We are working on Governments Schemes. We
started our Work from some Exporters. And work on their export schemes to gives them
government exporters incentives. RoDTEP Scrip are Generally use for the imports. Our
Trading Services is work on the selling buying RoDTEP and RoSCTL Scrip. They Licences
used for the Paying Basic custom Duty Charges. Likes, RoDTEP, Drawback, RoSCTL
Schemes and etc. The Governments reason for giving exporter incentives is to bring in foreign
currency and grow the Indian Economy. And our services are highly reliable and durable have
earned immense reputation in global market. As the leading consulting, Trading and logistics
in Maharashtra (India).

Because of our services, skills and technical expertise in service industry. We are able
to makestrong market presence Worldwide. We follow strict service standard during these
process.
We believe in making strong bond with our customers for continuing long- lasting
relationship withthem. We are popular for delivering quality service before committed time
frame. We also offer customized business solution to our clients without any delay and the
correct charges. Our strong service bond us with our clients in every market of the world.
Vission
“To Create a hassle free experience in export business by providing services in India
andabroad.”

Mission
“To spur the growth of Export Business by facilitating end to end service to Exporter
under on roof”.

As a leading provider of advisory services to industries, we cater to the needs of the

followingsegments:
Export incentive services.
 Remission of Duties or Taxes on Exports Products ( RoDTEP) Schemes
 Rebate of State & Central Taxes and Levies ( RoSCTL )
 Status Holder Certificates.
 Advance Authorisation
 Export Promotion Capital Goods Scheme ( EPCG )
 GST Refund ( For Exporter )
 Liaison with Bank of behalf of the exporter for generation of BRC
 Registration-Cum-Membership Certificate ( RCMC ) of Oil Export Promotion
Councils suchas EEPC, FIEO etc.
 Custom bonded Warehouse / Manufacturing

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  REX Certificate, SIMS Certificate.
 Import Export Code ( IEC )
 SAFTA, AFTA and Certificate of Origin.
 Manufacturing and Other Operation in a Customs Bonded Warehouse ( MOOWR )

2.3. CONCEPTUAL BACKGROUND

EXPORT

Exports are goods and services that are produced in one country and sold to buyers in
another. Exports, along with imports, make up international trade. Instead of confining itself
within itsgeographical borders, countries often intentionally seek external markets around the
world forcommerce, allowing greater revenue and transactional opportunities.
Exports are the goods and services produced in one country and purchased by citizens
of anothercountry. It doesn’t matter what the good or service is. It doesn’t matter how it is sent.
It can be shipped, sent by email or carried in personal luggage on a plane. If it is produced
domestically and sold to someone from a foreign country it is an export.

For example, American tourism products and services can be exports.

Even though they are produced in the united state they are exports when they are sold
to foreignerswho are visiting. If an overseas friends send you money to buy a pair of jeans to
mail to them that also export.

How Countries Support Exports

There are several ways countries try to increase exports.

First they will use trade protectionism to give their industries an advantage. This usually
consists totariffs that raise the prices of imports. They also provide subsidies on their own
industries to make prices lower. But, once they start doing this other countries will retaliate
with the same measures.
This will lower trade overall. In fact this was one of the cause of the great depression.

Once tariff and subsidies have lowered trade, countries will negotiate trade agreement.
This allows greater exports by reducing trade protectionism. The world trade organization tried
to negotiate an agreement between almost all the nations in the world. It almost succeeded until
the EUand the united stated refused to eliminate their farm subsidies. Now most countries must
rely on bilateral trade agreement or regional agreement.
Countries will also try to lower the value of their currency. This increase exports by
making their prices lower. They do this by lowering interest rate printing more currency or
buying up foreigncurrency to make its value higher. Find out which countries are winning and
losing these currency wars.

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IMPORTS

An import is the receiving country in an export from the sending country. Importation
andexportation are the defining financial transactions of international trade.
In international trade, the importation and exportation of goods are limited by import
quotasand mandates from the customs authority. The importing and exporting jurisdictions
may impose a tariff (tax) on the goods. In addition, the importation and exportation of goods
are subject to trade agreements between the importing and exporting jurisdictions.
Imports consist of transactions in goods and services to a resident of a jurisdiction (such
as anation) from non-residents. The exact definition of imports in national accounts includes
and excludes specific "borderline" cases. Importation is the action of buying or acquiring
products or services from another country or another market other than own. Imports are
important for the economy because they allow a country to supply non existent, scarce, high
cost, or low-quality certain products or services, to its market with products from other
countries.

Import of goods

Importation and declaration and payment of customs duties is done by the importer of
record,which may be the owner of the goods, the purchaser, or a licensed customs broker.

Balance of trade

A country has demand for an import when the price of the good (or service) on the
worldmarket is less than the price on the domestic market.

The balance of trade, usually denoted NX, is the difference between the value of all the
goods (and services) a country exports and the value of the goods the country imports. A trade
deficit occurs when imports are larger than exports. Imports are impacted principally by a
country's income and its productive resources. For example, the US imports oil from Canada
even though the US has oil and Canada uses oil. However, consumers in the US are willing to
pay more for the marginal barrel of oil than Canadian consumers are, because there is more oil
demanded in the US than there is oil produced.

In macroeconomic theory, the value of imports can be modeled as a function of

domestic absorption(spending on everything, regardless of source) and the real exchange rate.
These are the two most important factors affecting imports and they both affect imports
positively

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 CHAPTER 3
LITERATURE REVIEW

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LITERATURE REVIEW

3.1. REMISSION OF DUTIES OR TAXES ON EXPORT PRODUCTS ( RODTEP )

SCHEME.
RoDTEP is based on the globally accepted principle that taxes and duties should not be
exported, and taxes and levies borne on the exported products should be either exempted or
remitted to exporters.
Taking a major step to boost exports, Centre today further expanded the scope of
RoDTEP Scheme (Remission of Duties and Taxes on Exported Products) by including the
exports made from the Chemical sector, Pharmaceuticals sector and exports of articles of iron
& steel under chapters 28, 29, 30 and 73 of ITC(HS) schedule of items.
The expanded list of items will be applicable for exports made from 15th December,
2022. This was a long-standing demand of the industry which has been accepted and will go a
long way in boosting our exports and competitiveness in the global markets, generate
employment and contribute to the overall economy. The expanded list of eligible export items
under Appendix 4R will increase from current 8,731 export items (8 digit tariff lines) to 10,342
export items (8 digit tariff lines).
RoDTEP is based on the globally accepted principle that taxes and duties should not be
exported, and taxes and levies borne on the exported products should be either exempted or
remitted to exporters. The RoDTEP scheme rebates/refunds the embedded Central, State and
local duties/taxes tothe exporters that were so far not being rebated/refunded. The scheme
is being implemented from1st January 2021 and the rebate is issued as a transferable electronic
scrip by the Central Board of Indirect Taxes & Customs (CBIC) in an end to end IT
environment.
It may be noted that Government is leaving no stone unturned to support domestic
industry and make it more competitive in the international markets. Export centric industries
are being reformed and introduced to better mechanisms so as to increase their competitiveness,
boost exports, generate employment and contribute to the overall economy. This will go a long
way in achieving our vision of building an Aatmanirbhar Bharat.
In the present times, when exports are facing headwinds on account of signs of
recession in some of the developed markets & supply chain disruptions on account of Russia-
Ukraine conflict, extension of RoDTEP to uncovered sectors like Chemicals, Pharmaceuticals
& Articles of Iron & Steel is likely to enhance the export competitiveness of these sectors
What is the RoDTEP Scheme?
 The RoDTEP scheme would refund to exporters the embedded central, state andlocal
duties or taxes that were so far not been rebated or refunded and were, therefore, placing
India’s exports at a disadvantage.
 The rebate under the scheme would not be available in respect of duties and taxes
already exempted or remitted or credited.

Launch

It was started in January 2021 as a replacement for the Merchandise Export from
India Scheme(MEIS), which was not compliant with the rules of the World Trade Organisation.

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 The MEIS scheme provided additional benefits of 2% to 7% on the Freight On Board
(FOB) value ofeligible exports.

For garment exporters, the Rebate of State and Central Levies and Taxes (RoSCTL)
Scheme has beennotified separately.

Rates :

The tax refund rates range from 0.5% to 4.3% for various sectors.

The rebate will have to be claimed as a percentage of the Freight On Board value of exports.

3.2. REBATE OF STATE & CENTRAL TAXES AND LEVIES (ROSCTL)

The Rebate of State Levies (RoSL) Scheme is eligible for the textile sector to increase
competitiveness in the global market and to create employment opportunities in India. This
scheme gives a rebate of State Levies (RoSL) from customs. And it was directly credited to the
Exporter bankaccount.
This Scheme has been introduced as a replacement of previous Rebate of State Levies
(RoSL)Scheme which provided only rebates of state taxes. Vide aforesaid notification dated
07.03.2019, the RoSCTL Scheme were made effective from the date of Notification i.e. w.e.f.
07.03.2019 with an expiry date of 31.03.2020 which has now been extended up to 31.03.2024.
Prior to introduction of the RoSCTL scheme, the Apparel and made-ups sectors were
supported under the Scheme for Rebate of State Levies (RoSL) for apparel, notified vide
notification no. 12020/03/2016-IT dated 12.08.2016 and for made-ups, notified vide
notification no.
12015/47/2016-IT dated 03.01.2017. However, certain State as well as Central taxes
continued to bepresent in the cost of exports. Accordingly, in pursuance of the decision of the
Government of India to rebate all embedded State and Central Taxes and Levies on garments
and made-ups to enhance competitiveness of these sectors, the RoSCTL Scheme was notified
by the Ministry of Textiles and the existing RoSL Scheme was discontinued w.e.f. from
07.03.2019.
Rebate of State Taxes and Levies comprises of VAT on fuel used in transportation,
captive power, farm sector, mandi tax, duty of electricity, stamp duty on export documents,
embedded SGSTpaid on inputs such as pesticides, fertilizers etc. used in production of raw
cotton, purchases from unregistered dealers, coal used in production of electricity and inputs
for transport sector.
Rebate of Central Taxes and Levies comprises of central excise duty on fuel used in
transportation, embedded CGST paid on inputs such as pesticides, fertilizer etc. used in
production ofraw cotton, purchases from unregistered dealers, inputs for transport sector and
embedded CGST andCompensation Cess on coal used in production of electricity.

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 The sectors covered under this scheme (apparel/garments and made-ups) would not get
benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
However, textiles products which are not covered under the RoSCTL would be eligible
to avail the benefits, if any, under RoDTEP along with other products as finalised by the
Department of Commerce.

RATES OF REBATE UNDER RoSCTL SCHEME

On the basis of recommendation by the Drawback Committee, constituted by the
Central Government, the Ministry of Textiles, has notified the rates of rebate under RoSCTL
Scheme (including applicable value caps) on export of garments/Apparels and made-ups
manufactured in India vide Notification No. 14/26/2016- IT (Vol.II) dated 08.03.2019 under
Schedule 1, 2, 3 and 4 ofthe notification.
The Schedule 1 and 2 are the rates of State and Central taxes and levies respectively,
for apparel and made-ups. Schedules 3 and 4 are the rates of State and Central taxes and levies
respectively, applicable for apparel exports when the fabric (including interlining) only has
beenimported duty free under Special Advance Authorization Scheme.
The Government of India reserves the right to suitably adjust the rate and caps in the
light ofchange in relevant underlying conditions. Rates under the scheme shall be subject to
review as per periodicity to be decided separately by Ministry of Textiles and Ministry of
Finance.

3.3.STATUS HOLDER CERTIFICATE

Status holder are business leader who have excelled in international trade and have
successfully contributed to country’s foreign trade. Status hoders are expected to not only
contribute towards india’s exports but also provide guidance and handholding to new
entrepreneurs.
all exporter of goods, services and technology having an import – export code ( IEC )
number shall beeligible for recognition as a status holder. Status recognition will depend on
export performance during the current and previous three financial during the current and
previous three financial years ( for Gems & Jewellery Sector the performance during the
current and previous two financial years shall be considered for recognition as status holder ).
The export performance will be counted on the basis of FOB of export earning in freely
convertible foreign currencies.

3.4.ADVANCE AUTHORISATION.

Advance Authorisation Scheme (AAS) or Advance License Scheme is a duty

exemption scheme issued by the Government of India (GOI) under the Foreign Trade Policy
2015-2020. This scheme exempts the payment of import duties on raw materials/inputs

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required for manufacturing products for export. With the Advance License, import of raw
materials/inputs canbe instigated at zero customs duty for production of export products. The
motive is to enhance thecompetitiveness of Indian products in the global market. Exempting
duties on raw materials automatically reduces the expenses of the final export product.

The Advance Authorization Scheme is a scheme where the import of inputs will be
allowed to be made duty-free (after making normal allowance for wastage) if they are
physically incorporated in a product which is going to be exported. An export obligation is
usually set as a condition for issuing Advance Authorization.

Eligibility for Advance Authorization Scheme

Advance Authorization can be availed by manufacturer exporters or merchant exporters

whoare linked with supporting manufacturers for physical exports (including exports to SEZ),
intermediate supplies, and supply of ‘stores’ on board foreign going vessels/aircraft (conditions
apply).
Apart from that, Advance Authorization is issued to sub-contractors to any project
(where the name of the sub-contractors appears in the main contract), United Nations
Organizations (UNO), aidprograms of the United Nations or other multilateral agencies, the
likes of which are paid for in free foreign exchange.
Advance Authorization for the import of raw sugar can be issued to either a
manufacturerexporter or merchant exporter associated with supporting manufacturers.

What is DUTY EXEMPTION & REMISSION SCHEME?

Duty exemption schemes enable duty free import of inputs required for export
production. An Advance Licence is issued as a duty exemption scheme. A Duty Remission
Scheme enables post export replenishment/ remission of duty on inputs used in the export
product. Duty remission schemes consist of (a) DFRC (Duty Free Replenishment Certificate)
and (b) DEPB (Duty EntitlementPassbook Scheme). DFRC permits duty free replenishment of
inputs used in the export product.
DEPB allows drawback of import charges on inputs used in the export product.

3.5.EXPORT PROMOTION CAPITAL GOODS SCHEME

EPCG scheme covers manufacturer exporters with or without supporting

manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers.
To apply for an EPCGscheme, an IEC is required.
In order to facilitate import of capital goods for producing quality goods and services
and enhance India’s manufacturing competitiveness, the Central Government has been

21
implementing aScheme called the Export Promotion Capital Goods Scheme under the Foreign
Trade Policy for manufacturer exporters with or without supporting manufacturer(s), merchant
exporters tied to supporting manufacturer(s) and service providers.
Under the Scheme, EPCG Authorizations are issued with actual user condition and
import validity of 24 months to import capital goods (except those specified in negative list)
for pre- production, production and post-production at zero customs duty, and subject to
fulfilment of specificExport Obligation equivalent to 6 times of duties, taxes and cess saved on
capital goods, to be fulfilled in 6 years from date of issue of Authorization. In addition, the
Authorization holder is required to fulfil Average Export Obligation achieved by him in the
preceding three licensing years for the same and similar products. However, if minimum 75%
of specific Export Obligation and 100% of Average Export Obligation is fulfilled within half
the original export obligation period, remaining export obligation can be condoned. Further, in
case of indigenous sourcing of capital goods and for exports of Green Technology products,
specific EO is only 75%. For Units located in North East Region and Jammu & Kashmir,
specific EO is only 25%. Presently, capital goods
imported for physical exports are also exempt from IGST and Compensation Cess up
to 31.03.2019.
The number of defaulters reported in the last three years is 1347 nos. in 2015-16; 1122
nos. in2016-17 and 1031 nos. in 2017-18. The Regional Authorities have taken penal action
under the Foreign Trade (Development & regulation Act), 1992 by issuing show cause notices
and passing adjudication orders for recovery of customs duty along with interest.

Benefit from EPCG Scheme

EPCG is intended for promoting exports and the Indian Government with the help of
thisscheme offers incentives and financial support to the exporters.
Heavy exporters could benefit from this provision. However, it is not advisable to go
aheadwith this scheme for those who don’t expect to manufacture in quantity or expect to sell
the produce entirely within the country, as it could become almost impossible to fulfil the
obligations set under this scheme.

3.6.GST Refund ( For Exporter )

As per the provisions included under IGST law, the exports of services are considered
as zero-rated supply is exempted from GST and are eligible to claim the refund of GST paid.
The GST portal has been set up for making GST refund claims efficiently. In this article, we
look at the process for claiming GST refund on exports of services.

Exports of Services

As per IGST Act Section 2(6), the tax paid on export of services is refundable under the
followingsituations are explained below:

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  The supplier of the service is within India.
 The recipient of service is outside India.
 The area of supply of service is outside India.
 The payment for such service obtained by the supplier is the convertible foreign
exchange.
 The supplier of service and the recipient of service are not from the establishments of a
different person.

Eligibility Criteria

The following conditions are eligible to file the refund application in form GST RFD-01A to
claimthe refund on account of exports of services with payment of tax.

 The Taxpayer is enrolled with GST Portal and holds an active GSTIN (Identification
Number)for the period of refund is applied.
 Form GSTR-1 and Form GSTR-3B need to be filed for all the tax periods for which
refund isintended to be claimed.
 The taxpayer has to make payment for taxes at the time of exporting services, which
needs tobe claimed for refund.

Documents Required

The applicant has to upload the required documents along with Form RFD-01A, as
notified under CGST Rules or Circulars stated. Additionally, Statement 2 having details of
invoices for exportof services with an integrated tax or any other supporting documentation
can be uploaded by the taxpayer, if needed by the sanctioning authority.

3.7.Registration Cum Membership Certificate (e-RCMC)

Registration-Cum Membership Certificate (RCMC) is a certificate that validates an

exporter dealing with products registered with an agency / organization that are authorised by
the Indian Government. The certificate is issued for five financial years by the Export
Promotion Councils (EPCs) / Commodity board / Development authority or other competent
authority in India. These bodies function as the Registering Authority to issue the RCMC to its
user. An exporter desiring to obtain an RCMC has to declare his mainstream business in the
application. This application would besubmitted to the related Registering Authority.

A total number of 26 Export Promotion Councils and 9 commodities board are present
in India. Commodities board and the EPCs in India are the concerned authorities for issuing
23
RCMC. These institutions have been authorised by the Central Government to issue RCMC to
the exporters.Every EPC and the commodities board in India categories itself depending on the
type of products. The RCMC shall be deemed to be valid from 1st April of the licensing year
in which it was issued and shall be valid for 5 financial years ending 31st March of the licensing
year, unless otherwise is specified.

3.8.CUSTOM BONDED WAREHOUSE

A customs bonded warehouse is a facility that holds imported, duty-payable goods in

storagefor processing before they are delivered to their final destination.
These facilities, which can be government or privately owned, are a useful option for
organizations looking to store inventory overseas.
The distinguishing feature of a customs bonded warehouse is that the payment of duty
tax canbe deferred for up to five years from the importation date. During this time, up until the
customs dutyis paid, the goods must remain within the facility, but products can be manipulated
and undergo manufacturing operations during this time.
The customs bonded warehouse proprietor is liable for the goods under a customs bond
until they are exported, withdrawn for supplies to an aircraft or vessel, or removed for
consumption withinthe U.S. after the duty has been paid. In the event that none of these criteria
are met, the imported goods will be confiscated and handled as per the country’s laws. Typically
this means that the shipment is disposed of.

Benefits of Using a Bonded Warehouse

Deferred Duties
As mentioned, the main benefit of a customs bonded warehouse is that duty is not
payable onthe stored goods until they are removed for consumption or sale. This means that an
importer or distributor can retain extra funds until the goods are withdrawn.

Convenient International Shipping

Organizations can hold their goods within the facility until demand increases. Once this
happens, the duty will be paid and some (or all) of the goods can be delivered domestically.
If a domestic buyer is not found for the imported goods, or demand weakens, the
importer can export the merchandise at no extra cost.

1.Storage of Restricted items

24
 Regulated or restricted goods can be stored at a bonded warehouse, but need to be
registered, and sometimes supervised, by CBP officials. In most cases, restricted goods can
only be held within awarehouse for a very limited time period. Customs bonded warehouses
are exempt from these time restrictions, which means organizations have five years to process
the necessary paperwork.

2.Security

Using a customs bonded warehouse makes the process of importing goods significantly
less stressful for manufacturers. Facilities are safe and secure with 24/7 surveillance and
organizations won’t need to worry about inspections, spikes or dips in product demand, or
deadlines for completingcomplex and time-consuming paperwork.

3.9.REGISTERED EXPORTERS SYSTEM

The REX system provides for certification of origin on: imports into the European
Union (EU) from certain countries under the Generalised System of Preference (GSP) and.
preferential origin exports from the EU under preferential agreements, for example, with the
UK, Canada, Japanand Vietnam.

The Registered Exporter system (the REX system) is a system of certification of origin
of goods based on a principle of self-certification.The origin of goods is declared by economic
operatorsthemselves by means of so-called statements on origin. To be entitled to make out a
statement on origin, an economic operator has to be registered in a database by his competent
authorities. The economic operator becomes a "registered exporter".

The REX system is the term used to designate the system of certification of origin as a
whole,and not only the underlying IT system which is used for the registration of exporters.
For the time being, the REX system is used by EU exporters in the context of some FTAs, in
the context of the GSP of the EU and in the context of the Overseas Association Decision.

The REX IT system has been developed by the European Commission and is made
availableto the Member States of the EU, to the GSP beneficiary countries and to the OCTs.
It takes the formof a Web application accessed with a username and a password as a
website through Internet. The only technical requirement is then to use a device connected to
Internet to be able to use the REX system

3.10. SIMS CERTIFICATE

25
 SIMS is a Steel Importing Monitoring System instituted by the Ministry of Commerce
andIndustry, Government of India to provide advance information about steel imports to both,
the government as well as relevant stakeholders.
SIMS is a licensing program applicable to steel importers. The Government felt the
need to introduce a licensing program which would enable the maintenance of a statistical
database recordingof all the steel imports entering into the country.
The purpose of SIMS is to enable the Government to maintain a constantly updated
database which contains advance information about steel imports entering into the country.
This data would help the government to arrive at effective policy formulations and
implementations regarding steel imports. Also, various other stakeholders associated with the
steel industry will be empowered to obtain information about the various steel products
imported into the country. The data stored in the SIMS portal is published every week on the
website of the Ministry of Steel and can be viewed by thepublic.
SIMS is a fully electronic procedure. Details have to be updated by the assessee in the
websiteof the Directorate General of Foreign Trade (DGFT). The relevant information should
be registered with the SIMS whenever a shipment of steel is imported. There is no need for
sending any physical documents.

3.11. IMPORT EXPORT CODE ( IEC )

An Importer -Exporter Code (IEC) is a key business identification number which

mandatoryfor export from India or Import to India. No export or import shall be made by any
person without obtaining an IEC unless specifically exempted. For services exports however,
IEC shall be not be necessary except when the service provider is taking benefits under the
Foreign Trade Policy.
Consequent upon introduction of GST, IEC being issued is the same as the PAN of the
firm. However, the IEC will still be separately issued by DGFT based on an application. The
nature of thefirm obtaining an IEC may be any of the follows- Proprietorship, Partnership, LLP,
Limited Company, Trust, HUF, Society.
The Importer -Exporter Code (IEC) is a key business identification number which is
mandatory for Exports or Imports. No person shall make any import or export except under an
IEC Number granted by the DGFT. In case of import or export of services or technology, the
IEC shall berequired only when the service or technology provider is taking benefits under the
Foreign Trade Policy or is dealing with specified services or technologies.

3.12. SAFTA, AFTA AND CERTIFICATE OF ORIGIN.

SAFTA

26
 SAFTA License is a Certificate of Origin granted by the Directorate General of Foreign
Trade(DGFT) for imports and exports of India. It is added to commercial invoices to show the
country of origin of the goods imported or exported.
An Agreement on the South Asian Free Trade (SAFTA) is a free trade
agreement/arrangementfor promoting trade and economic growth in South Asia by reducing or
minimising tariffs for intra- regional exports. The South Asian Free Trade Area includes eight
members of the South Asian for Regional Cooperation (SAARC), including India. The SAARC
Member States comprise the People's Republic of Bangladesh, the Kingdom of Bhutan, the
Republic of Maldives, the Kingdom of Nepal, the Republic of India, the Islamic Republic of
Pakistan and the Democratic Socialist Republic of Sri Lanka.
The agreement on the South Asian Free Trade Area, commonly known as SAFTA, was
signed in 2004 and enforced on 1st January 2006, where India, Pakistan and Sri Lanka are
categorised as Nor- Least Developed Contracting (NLDC) Sates and Bangladesh, Maldives,
Bhutan and Nepal are categorised as Least Developed Contracting (LDC) States. Afghanistan
became a member of SAARCin 2007 and was then categorised as LDC under SAFTA.
This agreement was signed to promote and sustain mutual trade and economic co-
operation withinthe region. The developing countries had to reduce duties down by 20% in the
first phase of a two-year period by the end of 2007. And the least developing countries had an
additional three years toreduce tariffs.

AFTA

The creation of the ASEAN Free Trade Area (AFTA) was agreed at the 1992 ASEAN
Summit in Singapore. The main objectives of the AFTA are to: create a single market and an
international production base; attract foreign direct investments; and. expand intra-ASEAN
trade andinvestments.
AFTA was also created as a response to other emerging regional groupings, such as the
NorthAmerican Free Trade Area (NAFTA) and the expansion of the European Union (EU). It
was also to leverage on the huge potentials and complementarities that exist in the region in
order to strengthen and deepen intra-ASEAN industrial linkages including creating strong and
competitive in small and medium enterprises.
The liberalisation of trade in the region through elimination of both intra-regional tariffs
and non- tariff barriers had contributed towards making ASEAN's manufacturing sectors more
efficient andcompetitive in the global market. As a result, consumers are able to source goods
from the more efficient producers in ASEAN, thus creating a robust intra-ASEAN trade.

3.13. Certificate of Origin

A Certificate of Origin (CO) is an important international trade document that certifies

that goods in a particular export shipment are wholly obtained, produced, manufactured or
processed in aparticular country.

27
 A certificate of origin (CO) is a document declaring in which country a commodity or
goodwas manufactured. The certificate of origin contains information regarding the product,
its destination, and the country of export. For example, a good may be marked "Made in the
USA" or "Made in China".
Required by many treaty agreements for cross-border trade, the CO is an important
form because it can help determine whether certain goods are eligible for import, or whether
goods aresubject to duties.

Understanding Certificates of Origin (COs)

Customs officials expect the CO to be a separate document from the commercial

invoice or packing list. Customs in these countries also expect it to be signed by the exporter,
the signature notarized, and the document subsequently signed and stamped by a chamber of
commerce. In some cases, the destination customs authority may request proof of review from
a specific chamber of commerce. Chambers of commerce usually only certify that which is
verifiable. However, if the chamber is presented with a declaration attesting to commercial
details, the accuracy of which it cannot check, it must confine itself to stamping the document
attesting to the position and the identity of the signatory.

The proof of review usually amounts to the chamber’s official embossing stamp and a
signature of an authorized chamber representative. Some countries are accepting electronically
issuedcertificates of origin that have been electronically signed by a chamber of commerce.

A certificate of origin may also be required by the buyer in the documentary

requirements stated within a letter of credit. The letter of credit may specify additional
certifications or language within that must be noted in order for the certificate of origin to
comply with the stated requirements.

Types of Certificates of Origin

There is no standardized certificate of origin (CO) form for global trade, but a CO,
normally prepared by the exporter of goods, has at least the basic details about the product
being shipped, a tariff code, the exporter and importer, and the country of origin. The exporter,
with knowledge of thespecific requirements of border control at the importing country, will
document these details, get theCO notarized by a chamber of commerce, and submit the form
with the shipment. Detail requirements depend on the type of goods being exported and where
they are going.

The main two types of COs are:

 non-preferential

28
  preferential.

3.14. MANUFACTURING AND OTHER OPERATIONS IN CUSTOMS

BONDED WAREHOUSE

Central Board of Indirect, Taxes and Customs has launched a revamped and streamlined
program to attract investments into India and strengthen Make in India. This program is based
upon Section 65of the Customs Act, 1962, which enables conduct of manufactured vide the
Manufacture and other Operations in custom bonded warehouse. The program has been
introduced vide the Manufacturing and Other Operations in Warehouse Regulations 2019, and
explained through circular-34/2019- Customs dated 01 st October, 2019.

Under this program a unit can import goods (both inputs and capital goods) under
customs duty deferment with no interest liability. There is no investment threshold or export
obligation. The duties are fully remitted if the goods resulting from such operations are
exported. Import duty is payable only if the resulting goods or imported goods are cleared in
the domestic market. The salient featuresof the Program are:
 No geographical limitation on where such units can be set up.
 A single application cum approval form for uniformity of practice with a single point
ofapproval to set up the operations of such units.
 Improved liquidity with deferment of import duty and no interest liability.
 Allows procurement of GST complaint goods form the domestic market for use in
manufacture and other operation in a section 65 Units.
 A single digital account for ease of doing business and easy compliance.
 Enables efficient capacity utilization, as there is no limit pm quantum of clearness that
canbe exported or cleared to the domestic markets.

29
 CHAPTER 4 :
RESEARCH METHODOLOGY

30
4.1. Research :

Research is formal work undertaken systematically to increase the stock of knowledge,

the use of knowledge to device new application. It is also used to establish or confirm facts,
reaffirm the result of previous work, solve new or existing problems, support theorems, or
develop new theories.A research project may also be an expansion on past work in fields. The
test the validity of instruments, procedures, or experiments, research may replicate elements of
prior projects, or the projects as a whole.
This is a research regarding testing the validity of EOU Scheme by India in order to
promote exportsform India.

4.2. Rsearch design :

In the project exploratory research is used to conduct the study. Exploratory research is
research conducted for a problem that has not been studied more clearly, establishes priorities,
develops operational definitions and improve the final research design. Exploratory research
helps determine the best research design, data collection method and selection of subjects. It
should draw definitive conclusions only with extreme caution. Given its fundamental nature,
exploratory researchoften concludes that a perceived problem does not actually exists.

Exploratory research often relies on techniques such as :

Secondary research – such as reviewing available literature and/or data.
Informal qualitative approaches, such as discussion with consumers, employees, management
or competitors.
Formal qualitative research through in depth interviews, focus groups, projective methods,case
studies or pilot studies.

4.3. Source and methods of data collection

Online research method is ways in a ways in which researchers can collect data via the
internet.. they are also referred to as internet research, internet science or iscience, or web-
based methods. Many of these online research methods are related exsting research
methodologies but re- invent and re-imagine them in the light of new thchnologies and
condition associated with the internet. With the internet.. with the growth of social media, a
new level of complexity and opportunity has been created.
This project is based on secondary data. Secondary data referes to data that is collected
by someone other than the user. Analysts of social and economic change consider secondary
data essential, sinceit is impossible to conduct a new survey that can adequately capture past
change and/or developments. Secondary data has been obtained from different sources :

31
 1. Information collected through census or government departments like housing, social
security,electoral statistics, tax records.
2. Internet searches and libraries.
3. Progress reports.

4.4.limitation of the study

The basic limitations of the projects are as follows:

as per company’s confidential policy some data is not disclosed.

 The study is dependent on reliability of online data.
 It is very lengthy and time consuming process.

32
 CHAPTER 5
DATA PRESENTATION & DATA ANALYSIS

33
THE MAXIMUM EXPORTS & EXPORT PRODUCTS FROM MAHARASHTRA

Sr. No. City Name Products % of Export

1 Nashik Grapes 22%
2 Nagpur Orange 18%
3 Pune Engineer Products 20%
4 Satara Sugar 25%
5 Jalgaon Banana 15%
Total 100%

Interpretation:
From State of the Maharashtra 15% of Banana will be Exported from Jalgaon City, 18%
of Oranges will be Exported from Nagpur City also 22% of Grapes will be exported from
Nashik Cityand also 20% of Engineer Products will be Exported from Pune City and also the
Satara export the 25% of Sugar.

34
Government Incentive Charts

Tariff Items Description of Goods RoDTEP UQC CAP (Rs. Per

Rate UQC)
08039010 Bananas, Fresh 3.0% Kg 1.6
07031011 Onions 2.0% Kg 1.2
15159030 chillies 1.0% Kg
17011200 Sugar 0.5% Kg
73181110 Machine screws 1.0% Kg
07061000 CARROTS, 2.5% Kg 1.2
61170201 Clothing of cotton 2.90% Kg 53.4
07020000 TOMATOES, 4.0% Kg 1.1
10051000 MAIZE (CORN) 1.0% Kg

35
Exporter Company

1. Bandhan Agritech Co Ltd.

Bandhan Agritech Private Limited is a Private incorporated on 27 March 2015. It is

classified as Non-govt company and is registered at Registrar of Companies, Mumbai. Its
authorized share capital is Rs. 100,000 and its paid up capital is Rs. 100,000. It is involved in
Agricultural and animalhusbandry service activities, except veterinary activities

The core of company is to export BANANA’s in different countries. The HSN Code of
Banana is 08039010. The amount of incentive, company receives is Rs. 1.6 per Net weight of
Shipment. And also company will received the 3% of Amount on FOB of shipments will get
anincentive with respective shipment of BANANA.

Product: BANANA

Incentiveon Incentiveon Incentive

ShipmentAmt Shipment
FOB (Colm UQC (Colm Amount
Shipping Bills (in FOB) A Net Weight
A*3%) B*1.6)
(in KG) B

1 1200000 20000 36000 32000 32000

2 110000 15000 3300 24000 3300
3 1250000 22300 37500 35680 35680
4 2365100 32000 70953 51200 51200
5 12500000 13000 375000 20800 20800
Total 17425100 102300 522753 163680 142980

When the company has five transaction of shipments to other countries . will be
exported thetotal amount of Rs. 17425100/- in FOB amount of shipments. With respect to the
shipments net weight of 102300 in Kg.

The incentive received on FOB amount of shipments of 3% would be Rs. 522753/-.

Theincentive received on UQC (Net Weight) of Rs. 1.6 would be Rs. 163680/-

Hence, the total amount of incentive the company will receive after proceeding the five
transaction of shipments is Rs. 142980/-

36
 2. Daulat Export LLP

Established in the year 2016 at ''Nashik, Maharashtra, We''Daulat Export" are a Sole
Proprietorship Firm based firm, engaged as the foremost Wholesaler and Trader of Fresh
Vegetableand Fresh Fruits.

On the export of chillies, tomato. The company will get the incentive of 1% with the
respect toFOB of Shipments. However the company will not get any inventive on export of
any other vegetables. Although, it will get incentive of 2.5 on exports on carrots with the respect
to FOB amount of Shipments, also get 1.2% with respect to net weight.

Government Incentive :

Tariff Items Description of Goods RoDTEP UQC CAP (Rs. Per

Rate UQC)
15159030 Chillies 1.0% Kg
07020000 Tomato’s 4.0% Kg 1.1
07061000 CARROTS 2.5% Kg 1.2

37
 ShipmentAmt Shipment
Shipping (in FOB) A Net Weight Incentiveon Incentive Incentive
Bills (in KG) B FOB on UQC Amount
Product

1 Chillies 2500000 13625 25000 25000

2 Tomato 1200000 7500 48000 8250 8250
3 Carrots 1135000 9860 28375 11832 11832
Total 4835000 30985 101375 20082 45082

When the company has three transaction of shipments to other countries . will be export
Chillies, Tomato and Carrots the total amount of Rs. 4835000/- in FOB amount of shipments.
Withrespect to the shipments net weight of 30985 in Kg.

The incentive received on FOB amount of shipments of 1%, 4% and 2.5% would be
Rs.101375/-. The incentive received on UQC (Net Weight) of Rs. 1.1 & 1.2 would be Rs.
20082/-

Hence, the total amount of incentive the company will receive after exporting the
Chillies,Tomato and Carrots is Rs. 142980/-

38
 3. Gemini International

We introduce ourselves as one of the leading exporters of Home and Institutional

Textiles. We are specialized in wide range of home textile products including bed linen,
bathsheets, bath towels, Kitchen towels, bathmats, rugs and coordinating household textiles
and innovator in the home textile .

Gemini International has been providing continuous value, service and quality to an
array of customers throughout the globe. Today we are considered as one of the most trusted
and one stop solution for home-textiles. With a continuous effort to service our customers,
Gemini Internationalhas created a unique point of difference and is growing at a CAGR of
90%. Our products are now sold in more than 25 countries throughout the Asia Pacific region,
The United States, South Africaand Europe.

In our ongoing effort and commitment to our esteemed customers we always aim to
grow our existing reputation as a market leader and innovator in the home textiles markets. We
have very strictquality control system in order to guarantee top quality products. We commit
for high quality, quick delivery and a wide selection of products and services.

Strong business ethics, excellence in business, productive work environment,

continuous improvement through sound governance and dynamic employee engagement have
been at thefoundation of the continuous success of the company.

We endeavor to reach the leadership position in each Segment / Sector of our Product /
Service.

39
 The core of company is to export CLOTHS’S in different countries. The HSN Code of
Clothsis 61170201. The amount of incentive, company receives is Rs. 53.4 per Net weight of
Shipment.
And also company will received the 2.90 % of Amount on FOB of shipments will get
an incentivewith respective shipment of CLOTHING OF COTTON.

Shipment Shipment Incentive on Incentiveon

ShippingBills Amt (in Net Weight FOB UQC Incentive
FOB) A (in unit) B (A*2.90%) (B*53.4) Amount

1 23512000 12000 681848 640800 640800

2 53619356 25000 1554961.324 1335000 1335000
3 13214250 29000 383213.25 1548600 383213.25
4 7546950 6500 218861.55 347100 218861.55
5 14567500 10000 422457.5 534000 422457.5
Total 112460056 82500 3261341.624 4405500 3000332.3

When the company has five transaction of shipments to other countries . will be
exported the total amount of Rs. 112460056/- in FOB amount of shipments. With respect to
theshipments net weight of 82500 in Unit.

The incentive received on FOB amount of shipments of 2.90% would be Rs.

3261341.624/-.
The incentive received on UQC (Net Weight) of Rs. 53.4 would be Rs. 4405500/-

Hence, the total amount of incentive the company will receive after proceeding the five
transaction of shipments is Rs. 3000332.3/-

40
 4. Raka Exports

Ratnatara Agro India Private Limited is a flying name in the domain of agro-food
products. We are more like a family than a team that has joined hands together to serve the
clients with the best. Since inception, we’re engaged in exporting and supplying the agro-food
products like the Fresh Onion, Fresh Garlic, Fresh Potato, Fresh Tomato, Fresh Grapes, Fresh
Pomegranate, Yellow Maize &various other Fruits & Vegetables to our clients. Throughout our
expedition, we have never compromised with the quality of the agro-food items that are
exported and supplied by us. Being a flying name, our company’s vision is to excel in the agro-
food market with a speed and burgeon on an international scale. This will fulfill our motto of
the client’s satisfaction at first.
Ratnatara Agro India Private Limited is the brainchild of Shri Ratanlalji B. Raka, who
is Founder & Chairman of the Board, Mr. Omprakash Ratanlalji Raka - Chief Executing
Officer(CEO), Mr.
Hemant Ratanlalji Raka, Chief Financial Officer (CFO), Mr. Prashant Subashji Raka -
Managing Director (Manmad Division), Mr. Rushabh Omprakash Raka, Director -
Administration and Mr. YashOmprakash Raka, Director - Operations. The foundation stone
was laid in the year 1961 in Lasalgaon, Nashik (Maharashtra, India). Due to their proficiency,
the company has crossed milestones of success since inception.
The core of company is to export ONION & YELLOW MAIZE in different countries.
The HSNCode of Onion is 07031011 & Yellow Maize is 10051000. The amount of incentive,
company receives is Rs. 1.2 per Net weight of Shipment. And also company will received the
2% & 1% of Amount on FOB of shipments will get an incentive with respective shipment of
Onion & Yellow Maize.

41
 Tariff Items Descriptionof RoDTEP UQC CAP (Rs.Per
Goods Rate UQC)

7031011 Onions 2.00% Kg 1.2

10051000 MAIZE 1.00% Kg
(CORN)

ShippingBills Incentiveon Incentive

Shipment Shipment Net Incentiveon
FOB (A*2% Amount
Product Amt (in Weight(in UQC(B*1.2)
&1%)
FOB) A unit) B

1 1532000 30000 30640 36000 30640

2 2324500 35000 46490 42000 42000
3 1232160 29000 24643.2 34800 24643.2
4 5146890 45000 102937.8 54000 54000
5 3468520 39000 69370.4 46800 46800
Onion
6 1023450 25000 20469 30000 20469
7 1265789 27500 25315.78 33000 25315.78
8 4509360 43000 90187.2 51600 51600
9 Maize 12050000 22000 120500 120500
10 10000000 19000 100000 100000
Total 42552669 314500 630553.38 328200 515967.9
8

When the company has ten transaction of shipments to other countries . will be exported
thetotal amount of Rs. 42552669/- in FOB amount of shipments. With respect to the shipments
net weight of 314500 in KG.

The incentive received on FOB amount of shipments of 2% & 1% would be Rs.

630553.38/-.
The incentive received on UQC (Net Weight) of Rs. 1.2 would be Rs. 328200/-

Hence, the total amount of incentive the company will receive after proceeding the five
transaction of shipments is Rs. 515967.98/-

42
 5. Delfingen India Pvt. Ltd.

Registered in 2017 ,India Delfingen India has gained immense expertise in supplying
& trading ofVehicle wiring sleeves, automotive oems develop systems, automotive interior
door trim etc. The supplier company is located in Pune, Maharashtra and is one of the leading
sellers of listed products. Buy Vehicle wiring sleeves, automotive oems develop systems,
automotive interior door trim in bulk from us for the best quality products and service.
The core of company is to export MACHINE SCREW in different countries. The HSN
Code of Screw is 73181110. And also company will received the 1 % of Amount on FOB of
shipments willget an incentive with respective shipment of Machine Screw.

ShippingBills ShipmentAmt Incentive on Incentive

(in FOB) A FOB (A*1%) Amount

1 450360 4503.6 4503.6

2 380000 3800 3800
3 12056000 120560 120560
4 563000 5630 5630
5 450000 4500 4500
6 360000 3600 3600
7 650000 6500 6500
8 420000 4200 4200
9 300000 3000 3000
10 210000 2100 2100
Total 15839360 158393.6 158393.6

When the company has five transaction of shipments to other countries . will be
exported thetotal amount of Rs. 15839360/- in FOB amount of shipments.

The incentive received on FOB amount of shipments of 1% would be Rs. 158393.6/-.

Hence, the total amount of incentive the company will receive after proceeding the five
transaction of shipments is Rs. 158393.6/-

43
 CHAPTER 6:

FINDING, SUGGESTION , CONCLUSION

LEARNING & CONTRIBUTION OF
ORGANIZATION

44
 FINDINGS:

Magnas Consulting is the service provider company. As an integrated solutions

provider, these address are all companies needs and concern through a single window. They
play a key role in every aspect of organisation, including exports incentives, Duty Drawback,
GST Refund and Export ImportDocumentation. This 360- degree approach is to maximise your
convenience. A solid consulting experience is the strong foundation on which firms stand today.

SUGGESTION:

Constantly identifying areas for improvement is an effective way for a company to

grow and increaseits stability. In a competitive market, it's also important to continue
improving performance levels in order to remain ahead of competitors who will similarly
make efforts to raise their quality. Creating an atmosphere within a company where staff feel
empowered to share suggestions for improvement allows you to identify innovative ideas and
put them into action for the benefit of the company.
State goals explicitly Creating procedures for clearly defining goals and expectations for staff
members can help to improve their productivity. Setting defined goals provides targets for
employeesto work toward and assess their performance against. It also ensures that
employees complete work that contributes to the overall goals of the organization and can be
an important step in facilitating projects that require multiple employees or teams to work
independently for significant periods of time before unifying their work

45
 CONCLUSION:

We are proud to state that Magnas Consulting is preferred consulting Agency. We are
strategically located and have the expertise to handle projects of any scale anywhere in the
country. A trusted Name in the field of export incentive services for exporter, Magnas
consulting stand out inmany ways such as: Qualified team with vast and varied experience.
Collaboration with experts and consultants from diverse backgrounds. Close co-ordination
with various government agencies and departments such as DGFT, APEDA, Customs, GST
etc. proven expertise in export incentive Schemes, GST, FEMA Compliance. Fast growing firm
serving from three location with increasing reach.

LEARNING

Organisation skills:-

From something as simple as working out how to be on time every single day to learning
how to dealwith and priorities the demands of different managers, right through to juggling
multiple tasks and submitting everything on time and to a high standard, work experience
teaches it all:
Interpersonal skills Problem-solving skills Commercial awareness Maturity
Teamwork Practical skills
Self-confidence and self-esteem.

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 CONTRIBUTION TO ORGANIZATION

Positivity-

Indispensable employees are enjoyable to work with. We all know of a colleague people
dread collaborating with. We also all know colleagues that people love to work with. You look
forward toseeing them. After interacting with them, you’re more energized. You don’t have to
be friends witheveryone in your company but you want to be that colleague with the positive
energy.

Creativity-

Indispensable employees come up with ideas or ask thoughtful questions to encourage

ideas. At thenext meeting, aim to add at least one helpful comment or make one supportive
remark to someone else’s comment. Focus on solutions to problems that are raised. In your
day-to-day role, think abouthow you might approach one of your responsibilities differently

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 BIBLIOGRAPHY

URL :
www.magnasconsulting.comwww.google.com

BOOKS :
Foreign Trade Exchange

Communicating to the every department headsExporter Shipping Bills

Exporters DGFT & ICEGATE Login Details

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