APPENDIX I Questionnaire for Pilot Study Stage I Section 1: Customs Clearance Issues and Challenges Yes/No Remarks, if any

Transcription

1 APPENDIX I Questionnaire for Pilot Study Please identify the issues and challenges in context of outbound logistics activities of Indian Apparel Exports. Stage I Section 1: Customs Clearance Issues and Challenges Yes/No Remarks, if any Technical challenges in EDI systems Number of staff/officers/resources at customs Wrong declaration by shipper Corruption/ bureaucracy/non-cooperation of customs officers Understanding of valuation and supporting procedures/policies of customs officials Missing documents/error in documents or in registered data at customs Manual /physical inspection at customs Heightened security initiative like CSI, CTPAT at customs Appeal process against decisions at customs Product/tariff classification issues at customs Limited working hours of customs officials Please add if any other issue or challenge Section 2: Export Documentation Issues and Challenges Yes/No Remarks, if any Partial automation/integration of systems for export documentation at various export related agencies Level of clarity in export sales contract/ international practices and guidelines Clerical errors in export related documents Number of documents required in existing process Level of complication involved in export documentation Please add if any other issue or challenge 268

2 Section 3: Port warehousing and material handling Issues and Challenges Yes/No Remarks, if any Space for seaport operations/storage/internal movement Berthing space and quay infrastructure Seaport information technology (IT) system Number of cargo handling equipment at sea port Number of vehicle entry points at seaport Bureaucratic issues at seaport operations Labour related issues at seaport Coordination between various parties involved at seaport operations Increased security regulations at seaport Level of maintenance practices at seaport Unfavourable weather conditions / acts of God at port Please add if any other issue or challenge Section 4: ICD/CFS warehousing and material handling Issues and Challenges Yes/No Remarks, if any Number of cargo handling equipment at ICD/CFS Number of vehicle entry points at ICD/CFS Availability of storage space at ICD/CFS Number of rail sidings at ICD/CFS Technology level of warehousing systems at ICD/CFS Level of training and experience of people at ICD/CFS Coordination between various intermodal players involved at ICD/CFS Level of maintenance practices at ICD/CFS Increased security regulations at ICD/CFS Please add if any other issue or challenge Section 5: Road Transportation Issues and Challenges Yes/No Remarks, if any Quality /condition of roads Availability of trucks/trailers for road transit Level of efficiency /technology (GPS, etc.) inbuilt in trucks /trailers for road transit 269

3 Level of expansion of road network Level of professionalism/skills of truck driver Time involved in interstate regulatory check points Waiting time due to vehicle entry restrictions in cities Level of maintenance practices of trucks/trailers Unfavourable weather conditions / acts of God during road transit Please add if any other issue or challenge Section 6: Rail Transportation Issues and Challenges Yes/No Remarks, if any Availability of rakes/wagons for rail transportation Number of dedicated tracks for container rail transportation Frequency of container rail services due to evacuation constraints Level of planning and coordination in cargo rail services Level of priority to passenger trains over container trains Unfavourable weather conditions / acts of God Please add if any other issue or challenge Section 7: Export Packaging (Containerisation) Issues and Challenges Yes/No Remarks, if any Availability of containers for garment stuffing Time involved in LCL consolidation Please add if any other issue or challenge 270

4 Please identify the cost implication factors to Indian apparel exporters due to delay in apparel export shipments caused by logistics issues and challenges. Cost Implication factors Yes/No Remarks, if any Increase administration workload and costs Increase transport costs Affect sales and promotion plans (Company s image) Inventory costs Account receivable and cash flow Custom-port costs (inspection, storage, clearance, etc.) Please add if any other issue or challenge 271

5 Stage II Please advise gateway seaports for following apparel clusters Seaports Delhi NCR Jaipur Ludhiana Bangalore Tirupur Please advise cycle time (in number of days) for below logistics activities in no delay scenario (The cycle time of an activity is defined as elapsed time span from start till end of activity) Please consider FOB Sea mode for apparel export shipments (from ex-factory till excounty node) Export Documentation (with external agencies) Export Packaging (Containerisation) Customs Clearance ICD/CFS related activities Road Transportation Rail Transportation Seaport related activities Delhi NCR Jaipur Ludhiana Bangalore Tirupur Please suggest number of days of delay which can be managed for loading of apparel shipments on the planned vessel. No. of days.. Please add remarks Please validate below identified issue during first stage Issues and Challenges Lack of availability of Garment on Hanger (GOH) containers Remarks, if any: Yes/No 272

6 Stage III Please validate below mentioned cycle time (in number of days) of logistics activities for apparel clusters. Please answer as Yes or No. Destination ports for North India Apparel Cluster: JNPT Mumbai, Mundra, Pipavav Destination ports for South India Apparel Cluster: Chennai, Tuticorin Documentation Customs Clearance Containerisation ICD/CFS related activities Road Trans. Rail Trans. Seaport Related activities Total time Delhi NCR Please validate Jaipur Please validate LDH Please validate BLR Please validate Tirupur Please validate Please give your remarks if any Please validate number of days of delay which can be managed for loading of apparel shipments on the planned vessel. No. of days which can be managed for catching the planned vessel North India Cluster 1-3 days (but not certain) South India Cluster 1-3 days (but not certain) (Mother Vessel from Colombo) Please validate the below remark If delay exceeds for more than three days then it is highly improbable to load the cargo on the same vessel unless exporter bears extra transportation cost (to send the cargo from landlocked origin) till the gateway port through air mode or with express road services) and other kinds of costs. Although there is no surety that cargo will certainly get loaded on the planned vessel Please validate in Yes or No Please validate in Yes or No 273

7 APPENDIX II Questionnaire for Phase II- Stage I study Name of the organization: Location of your office: Respondent Name: Designation: Please rank below outbound logistics activities of Indian Apparel exports in terms of their severity level of affecting delivery lead time. (Please rank 1 being most severe) Section 1: Outbound Logistics activities Export Documentation (with external agencies) Export Packaging (Containerisation) Customs Clearance ICD/CFS warehousing and material handling Road Transportation Rail Transportation Seaport warehousing and material handling Rank Please rank below of issues & challenges involved in outbound logistics activities of Indian Apparel exports in terms of their severity level of affecting delivery lead time. (Please rank 1 being most severe) Section 2: Customs Clearance Issues and Challenges Technical challenges in EDI systems Number of staff/officers/resources at customs Wrong declaration by shipper Corruption/ bureaucracy/non-cooperation of customs officers Understanding of valuation and supporting procedures/policies of customs officials Missing documents/error in documents or in registered data at customs Manual /physical inspection at customs Heightened security initiative like CSI, CTPAT at customs Appeal process against decisions at customs Product/tariff classification issues at customs Limited working hours of customs officials Rank 274

8 Section 3: Export Documentation Issues and Challenges Partial automation/integration of systems for export documentation at various export related agencies Level of clarity in export sales contract/ international practices and guidelines Clerical errors in export related documents Number of documents required in existing process Level of complication involved in export documentation Rank Section 4: Port warehousing and material handling Issues and Challenges Space for seaport operations/storage/internal movement Berthing space and quay infrastructure Seaport information technology (IT) system Number of cargo handling equipment at sea port Number of vehicle entry points at seaport Bureaucratic issues at seaport operations Labour related issues at seaport Coordination between various parties involved at seaport operations Increased security regulations at seaport Level of maintenance practices at seaport Unfavourable weather conditions / acts of God at port Rank Section 5: ICD/CFS warehousing and material handling Issues and Challenges Number of cargo handling equipment at ICD/CFS Number of vehicle entry points at ICD/CFS Availability of storage space at ICD/CFS Number of rail sidings at ICD/CFS Technology level of warehousing systems at ICD/CFS Level of training and experience of people at ICD/CFS Coordination between various intermodal players involved at ICD/CFS Level of maintenance practices at ICD/CFS Increased security regulations at ICD/CFS Rank Section 6: Road Transportation Issues and Challenges Quality /condition of roads Availability of trucks/trailers for road transit Level of efficiency /technology (GPS, etc.) inbuilt in trucks /trailers for road transit Level of expansion of road network Rank 275

9 Level of professionalism/skills of truck driver Time involved in interstate regulatory check points Waiting time due to vehicle entry restrictions in cities Level of maintenance practices of trucks/trailers Unfavourable weather conditions / acts of God during road transit Section 7: Rail Transportation Issues and Challenges Availability of rakes/wagons for rail transportation Number of dedicated tracks for container rail transportation Frequency of container rail services due to evacuation constraints Level of planning and coordination in cargo rail services Level of priority to passenger trains over container trains Unfavourable weather conditions / acts of God Rank Section 8: Export Packaging (Containerisation) Issues and Challenges Availability of containers for garment stuffing Availability of containers for hanging garment stuffing Time involved in LCL consolidation Rank 276

10 APPENDIX III Questionnaire for Phase II- Stage II study Name of the organization: Location of your office: Respondent Name: Designation: Please rate below outbound logistics activities of Indian Apparel exports (Scale 1-5) in terms of their severity level of affecting delivery lead time. (Please rate 1 being least severe and 5 being most severe) Please tick for your rating selection Section 1: Outbound Logistics activities Export Documentation (with external agencies) Export Packaging (Containerisation) Customs Clearance ICD/CFS warehousing and material handling Road Transportation Rail Transportation Seaport warehousing and material handling Please rate below of issues & challenges involved in outbound logistics activities of Indian Apparel exports (Scale 1-5) in terms of their severity level of affecting delivery lead time. (Please rate 1 being least severe and 5 being most severe) Please tick for your rating selection Section 2: Customs Clearance Issues and Challenges Technical challenges in EDI systems Number of staff/officers/resources at customs Wrong declaration by shipper Corruption/ bureaucracy/non-cooperation of customs officers Understanding of valuation and supporting procedures/policies of customs officials Missing documents/error in documents or in registered data at customs Manual /physical inspection at customs 277

11 Heightened security initiative like CSI, CTPAT at customs Appeal process against decisions at customs Product/tariff classification issues at customs Limited working hours of customs officials Section 3: Export Documentation Issues and Challenges Partial automation/integration of systems for export documentation at various export related agencies Level of clarity in export sales contract/ international practices and guidelines Clerical errors in export related documents Number of documents required in existing process Level of complication involved in export documentation Section 4: Port warehousing and material handling Issues and Challenges Space for seaport operations/storage/internal movement Berthing space and quay infrastructure Seaport information technology (IT) system Number of cargo handling equipment at sea port Number of vehicle entry points at seaport Bureaucratic issues at seaport operations Labour related issues at seaport Coordination between various parties involved at seaport operations Increased security regulations at seaport Level of maintenance practices at seaport Unfavourable weather conditions / acts of God at port Section 5: ICD/CFS warehousing and material handling Issues and Challenges Number of cargo handling equipment at ICD/CFS Number of vehicle entry points at ICD/CFS Availability of storage space at ICD/CFS Number of rail sidings at ICD/CFS Technology level of warehousing systems at ICD/CFS Level of training and experience of people at ICD/CFS Coordination between various intermodal players involved at ICD/CFS 278

12 Level of maintenance practices at ICD/CFS Increased security regulations at ICD/CFS Section 6: Road Transportation Issues and Challenges Quality /condition of roads Availability of trucks/trailers for road transit Level of efficiency /technology (GPS, etc.) inbuilt in trucks /trailers for road transit Level of expansion of road network Level of professionalism/skills of truck driver Time involved in interstate regulatory check points Waiting time due to vehicle entry restrictions in cities Level of maintenance practices of trucks/trailers Unfavourable weather conditions / acts of God during road transit Section 7: Rail Transportation Issues and Challenges Availability of rakes/wagons for rail transportation Number of dedicated tracks for container rail transportation Frequency of container rail services due to evacuation constraints Level of planning and coordination in cargo rail services Level of priority to passenger trains over container trains Unfavourable weather conditions / acts of God Section 8: Export Packaging (Containerisation) Issues and Challenges Availability of containers for garment stuffing Availability of containers for hanging garment stuffing Time involved in LCL consolidation 279

13 APPENDIX IV Questionnaire for Phase III study Name of the Organisation Name of the Respondent Designation Gateway Port Freight Forwarders you work with Rank the below outbound logistics activities in terms of their severity level of affecting delivery lead time of Indian Apparel Exports Rank below logistics activities with 1 being most severe (Please consider only for Sea Mode shipment, INCO Term FOB, Port) Documentation Customs Clearance Export Packaging ICD/CFS related activities Road Transportation Rail Transportation Seaport related activities Frequency of delays due to issues and challenges in Outbound Logistics activities (from ex-factory to ex-country) (Please allocate frequency weightage out of 100, total weightage distributed should be 100%) NOTE: For example on an average, an exporter may face no delay (15% times), delay of 1 day (20% times), 2 days (15% times), 3 days (15% times), 4 days (10% times), 5 days (10% times), 6 days (5% times) and 5% times more than 7 days due to problems in documentation, consolidation, trucking, customs, transportation, etc. Delay in number of days 1 day 2 days 3 days 4 days 5 days 6 days 7 days More than 7 days 280

14 Cost Implication due to Outbound Logistics delays (Please allocate frequency weightage out of 100, total weightage distributed should be 100%) NOTE: For example, on an average an exporter may incur extra cost like increase administration workload ( 10% of the extra cost), transport costs (30% of extra cost), affect sales and promotion plans (company s image)(25% extra cost), inventory costs (10% of extra cost), account receivable and cash flow (10% of extra cost) Custom-port costs (15% of extra cost) due to issues and challenges in consolidation, trucking, documentation, transportation, customs, etc. Logistics delays related costs Cost Implication Factors Increase administration workload and costs Increase transport costs Affect sales and promotion plans (Company s image) Inventory costs Account receivable and cash flow Custom port costs (inspection, storage, clearance, etc.) 281

15 APPENDIX V List of proposed training programs Export Documentation Training on customs documentation and compliance procedures Training on commercial documentation and procedures Training on shipping document and procedures Training on document on third country transactions Training on country specific requirement of documentation Training on buyer specific requirement of documentation Customs Clearance Proposed training programs by AEPC on both apparel and textiles Training on technical knowledge of apparel and textiles Valuation Policies of apparel product categories Duty structure and knowledge of advance licensing (import of raw materials) 282

16 APPENDIX VI INCOTERMS 2010 Guideline The International Chamber of Commerce has released the table of contents to the Incoterms Incoterms 2010 consists of only 11 Incoterms, a reduction from the 13 Incoterms The Incoterms 2010 are organized into two categories: Incoterms for any Mode or Modes of Transport: EXW - Ex Works FCA - Free Carrier CPT - Carriage Paid To CIP - Carriage and Insurance Paid DAT - Delivered At Terminal (new) DAP - Delivered At Place (new) DDP - Delivered Duty Paid Incoterms for Sea and Inland Waterway Transport Only: FAS - Free Alongside Ship FOB - Free On Board CFR - Cost and Freight CIF - Cost, Insurance and Freight EXW (Ex Works) The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. The seller's obligation is to make the goods available at his premises (works, factory, warehouse). This term represents minimum obligation for the seller. This term can be used across all modes of transport. FCA (Free Carrier) The seller's obligation is to hand over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose within the place or range stipulated where the carrier shall take the goods into his charge. When the seller's assistance is required in making the contract with the carrier the seller may act at the buyers risk and expense. This term can be used across all modes of transport. 283

17 CPT (Carriage Paid To) The seller pays the freight for the carriage of goods to the named destination. The risk of loss or damage to the goods occurring after the delivery has been made to the carrier is transferred from the seller to the buyer. This term requires the seller to clear the goods for export and can be used across all modes of transport. CIP (Carriage & insurance Paid to) The seller has the same obligations as under CPT but has the responsibility of obtaining insurance against the buyer's risk of loss or damage of goods during the carriage. The seller is required to clear the goods for export however is only required to obtain insurance on minimum coverage. This term requires the seller to clear the goods for export and can be used across all modes of transport. DAT (Delivered At Terminal) New Term - May be used for all transport modes Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. "Terminal" includes quay, warehouse, container yard or road, rail or air terminal. Both parties should agree the terminal and if possible a point within the terminal at which point the risks will transfer from the seller to the buyer of the goods. If it is intended that the seller is to bear all the costs and responsibilities from the terminal to another point, DAP or DDP may apply. Responsibilities Seller is responsible for the costs and risks to bring the goods to the point specified in the contract Seller should ensure that their forwarding contract mirrors the contract of sale Seller is responsible for the export clearance procedures Importer is responsible to clear the goods for import, arrange import customs formalities, and pay import duty 284

18 If the parties intend the seller to bear the risks and costs of taking the goods from the terminal to another place then the DAP term may apply DAP (Delivered At Place) New Term - May be used for all transport modes Seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Parties are advised to specify as clearly as possible the point within the agreed place of destination, because risks transfer at this point from seller to buyer. If the seller is responsible for clearing the goods, paying duties etc., consideration should be given to using the DDP term. Responsibilities Seller bears the responsibility and risks to deliver the goods to the named place Seller is advised to obtain contracts of carriage that match the contract of sale Seller is required to clear the goods for export If the seller incurs unloading costs at place of destination, unless previously agreed they are not entitled to recover any such costs Importer is responsible for effecting customs clearance, and paying any customs duties DDP (Delivered Duty Paid) The seller is responsible for delivering the goods to the named place in the country of importation, including all costs and risks in bringing the goods to import destination. This includes duties, taxes and customs formalities. This term may be used irrespective of the mode of transport. FAS (Free Alongside Ship - named port of shipment) The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export. Suitable only for maritime transport but NOT for multimodal sea transport 285

19 in containers (see Incoterms 2010, ICC publication 715). This term is typically used for heavy-lift or bulk cargo. FOB (Free On Board - named port of shipment) The seller must load themselves the goods on board the vessel nominated by the buyer. Cost and risk are divided when the goods are actually on board of the vessel (this rule is new!). The seller must clear the goods for export. The term is applicable for maritime and inland waterway transport only but NOT for multimodal sea transport in containers (see Incoterms 2010, ICC publication 715). The buyer must instruct the seller the details of the vessel and the port where the goods are to be loaded, and there is no reference to, or provision for, the use of a carrier or forwarder. This term has been greatly misused over the last three decades ever since Incoterms 1980 explained that FCA should be used for container shipments. CFR (Cost and Freight) The seller must pay the costs and freight required in bringing the goods to the named port of destination. The risk of loss or damage is transferred from seller to buyer when the goods pass over the ship's rail in the port of shipment. The seller is required to clear the goods for export. This term should only be used for sea or inland waterway transport. CIF (Cost, Insurance & Freight) Source: The seller has the same obligations as under CFR however he is also required to provide insurance against the buyer's risk of loss or damage to the goods during transit. The seller is required to clear the goods for export. This term should only be used for sea or inland waterway transport. 286