FAQs About AD Code (Authorized Dealer Code)

Q – What is an AD Code?

A – This is a numeric code issued by Reserve Bank of India. AD code is issued to those banks which are dealing in foreign currency or authorized for it.

Q – Is there requirement for AD Code Letter for an Exporter/Importer?

A – Yes. It is mandatory in India to have Authorized Dealer Code Letter for Exporter/ Importer.

Q – What is an AD Code Letter?

A – An AD Code letter is issued by a bank which is dealing in foreign currency to the Exporter/ Importer who is having bank accounts in that Bank.

Q – What are the details mentioned in an AD Code Letter?

A – An AD code letter is issued by the Authroized Dealer Bank mentioned, Name and address of Exporter/Importer, IEC number (which is issued by DGFT), Bank Account Detail, Duration of Account an exporter/Importer having with the bank

Q – Where is AD code letter required?

A – An exporter/importer has to submit this AD code letter to the customs from where export/import clearance is being done. Now, it can be done online by exporter of importer from icegate portal. Step wise detail and guidance is given on this LINK

Q – Why does an exporter or importer need to register AD code?

A – An AD code is require for filing shipping bill or bill of entry. Shipping bill must have AD code detail with bank account number of exporter. If there is any government rebate in taxes/duties or any benefit, it will be passed on the exporter’s account directly.

Q – Can we change/modify AD Code?

A – Yes. We can change/modify AD code through icegate portal on this link https://www.icegate.gov.in/

Incoterms – Explained in a very Simple way

During international transactions it is very important that the selling terms are clearly drawn between the buyer and the seller. Incoterms stand for International Commercial terms. This is the set of rule published by ICC (International Chamber of Commerce). These rules are accepted by the legal authorities around the world. Incoterms states when the risk, cost and tasks transfers from the buyer to the seller.

Exw (Ex works) - Place

Seller – Packing

Buyer – Any other cost and expenses

Insurance is negotiable between buyer & seller.

The seller does not need to load the goods on any collecting vehicle. Nor does it need to clear them for export, where such clearance is applicable.

FCA (Free Carrier) - Place

Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance

Buyer – Any other cost and expenses

Insurance is negotiable between buyer & seller.

 ---- Mode of Transport - Sea -------

++++++

FAS (Free Alongside Ship) – Port

Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port.

Buyer – Any other cost and expenses

Insurance is negotiable between buyer & seller.

FOB (Free On Board) – Port

Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges

Buyer – Any other cost and expenses

Insurance is negotiable between buyer & seller.

CFR (Cost and Freight) – Port

Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges

Buyer – Any other cost and expenses

Insurance is negotiable between buyer & seller.

 

CIF (Cost, Freight and Insurance) – Port

Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges

Buyer – Any other cost and expenses

Insurance is in Seller’s account

++++++++

CPT (Carriage Paid To) – Place

Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges + Destination Terminal Charges

Buyer – Any other cost and expenses

Insurance is negotiable between buyer & seller.

CIP (Carriage & Insurance Paid To) – Place

Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges + Destination Terminal Charges

Buyer – Any other cost and expenses

Insurance is in Seller’s account

DAP (Delivered at Place) – Place

Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges + Destination Terminal Charges + Delivery to Destination

Buyer – Any other cost and expenses

Insurance is negotiable between buyer & seller.

DPU (Delivered at Place Unloaded) – Place

Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges + Destination Terminal Charges + Delivery to Destination + Unloading Charges

Buyer – Any other cost and expenses

Insurance is negotiable between buyer & seller.

DDP (Delivered Duty Paid) – Place

Seller – Packing + Loading Charges + Delivery to Port/Place + Export Duty, Taxes & Custom Clearance + Terminal handling charges at load port + Loading Charges + Carriage charges + Destination Terminal Charges + Delivery to Destination + Unloading Charges + Import Duties, Taxes and Custom Clearance.

Buyer – Any other cost and expenses

Insurance is negotiable between buyer & seller.

Disclaimer:

“The author assumes no responsibility or liability for any errors or omissions in the content of this site and for this blog. The information contained in this site is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness.”

 

How to track Import and Export Shipments and its benefits

For, Import and Export business, it is imperative for Importers and Exporters to understand movement of cargo which is very vital for them to make further planning, decisions and avoid issues related to shipments.

Here, I will explain in detail how we can track shipment status and movement of cargo whether in containerized or break bulk shipment.

Containers

First of all, we have to check our bills of lading which shows name of Shipping line like Maersk, MSC, CMA CGM etc. We can use Bills of Lading numbers, Container number or booking number for tracking as specified in the search column.

Here is some links for shipping lines for tracking :-

Maersk : https://www.maersk.com/tracking/

MSC : https://www.msc.com/en

CMA CGM : https://www.cma-cgm.com/ebusiness/tracking

If shipment is done by some other shipping lines, its tacking option can be located at their website.

Track result will show following details:

Containers gate in date, date of loading in vessel & vessel name, detail of transshipment where containers discharged for loading in other vessel, when containers loaded in transshipment, arrival date at discharge port, when containers arrived at discharge port, Containers gate out date by consignee etc.

Breakbulks

In breakbulk shipment, we need to track position of vessel where she is at present moment rather tracking it by Bills of lading number which is containerized shipment case.

We can locate a vessel by below tracking website which gives almost perfect idea about vessel movement.

Marine traffic : https://www.marinetraffic.com

In this website we can search vessel by putting vessel name in search field like MV XYZ.

Track result will show following details:

Vessel present position with longitude and latitude, whether vessel in berth or in sea. Her loading date and Estimated time of Arrival (ETA) at discharge port etc

Benefit of tracking 

• Gives Importer and Exporter a clear picture about ETD and ETA for Containers/Vessels.

•  For Exporter to maintain latest shipment date. 

• Importers can appoint their CHA or handling agents for clear the cargo in time to avoid any demurrage and detention. 

• Importer can plan their payment schedule as per arrival of cargo or as per payment terms agreed in contract. 

• There are several times when containers are kept in transshipment port for a longer time. If an exporter/importer is tracking the schedule they can communicate with shipping line for early movement of containers. When goods are perishable in nature, then it is very important for Exporters/ Importers to properly follow us containers departure and arrival schedule.

FOXNUT/MAKHANA – Global and Domestic Prospect

Makhana which is grown in India within a very limited region is also known as Foxnut and Gorgon Nut. When lotus seed is processed in several steps with certain procedure, it yield Makhana.

It is a very high value commodity which is mainly grown in Bihar and certain part of eastern India. Bihar produces around 90% of world production of Makhana.

Market of Makhana is continuously growing in domestic and international market with a constant speed. There is a lot of opportunity to explore its market in both domestic and international trade.

Makhana has a good presence and popularity in countries viz India, China, Thailand and Japan whereas it has a very less presence in the US, the UK and western countries. These markets are still untapped which is can be a very good opportunity for new players to explore market for this product.

In China, it has been cultivated in the Hainan and Taiwan islands for 3 - 4 millennia and widely used in Chinese medicine. Raw makhana seed powder is an essential ingredient of the baby foods in China. Its distribution includes the islands of Taiwan (Formosa) and Kyusyu, Shikoku and Honshu in Japan.

Lotus seeds are also common in the northern part of Colombia, especially in cities like Barranquilla and Cartagena. Locals usually refer to lotus seeds as "martillo." Fresh lotus seeds are sold in street markets and are generally eaten raw by the locals.

Use of Makhana – 

It can be used in several ways, like slightly fried makhana taste extremely good, can be used with vegetables, can be mixed with milk to make Kheer etc.

Makhana has been proven to be high nutrients food which is rich in medicinal properties and good for daily health diet. The nutrients contained are vitamin, minerals and fibers.

There are several benefits of Makhana and is being considered as a very good substitute for Popcorn and potato chips.

Properties of Makhana

•  They are very low in cholesterol, fat and sodium. It is a very good supplement to be used as snacks.

• It had anti ageing enzymes and also recommended for diabetes patients.

• Makhanas are rich in protein and carbohydrate

• It has low calorific value and can be used as an ideal snack for those who are looking for weight loss.

Opportunities for Export Market of Makhana

It is estimated that the global market size of makhana will be around USD 75 Million during period 2019-2023

As India being one of the largest producer of Makhana, this untapped market can be utilized by proper planning and resources. The main hurdle is lack of awareness and marketing of this product by the government and also by the private players. Some suggestions can be outline as below for the improvement of this sector :-

• Proper marketing and creating awareness for Makhana

• As the farmers involved in this business are in the remote areas, they need to properly communicate and financial support should be provided by the government to grow this industry.

• Digital launch pad for different Makhana based products.

• Initiation to participate in various trade fares in different countries to popularize this product.

Indian Maize (Corn)

Export Data of Maize from India	Top 10 Country
	Bangladesh Vietnam Nepal Malaysia Myanmar Sri Lanka Bhutan Thailand Oman Taiwan

Maize is one of the major staple food and widely used across the world. In India, maize is cultivated in two season one in Kharif, which is rainy season and another in Rabi, which is winter season. Maize cultivated in Kharif season constitute around 83% of area whereas cultivated area of Rabi maize crop is around 13%.

Maize growing States :

Andhra Pradesh, Karnataka, Rajasthan, Maharashtra, Bihar , Uttar Pradesh, Madhya Pradesh, Himachal Pradesh are growing around 80% of the total maize production in India.

 

States	% Production
Andhra Pradesh	20.9
Karnataka	16.5
Rajasthan	9.9
Maharashtra	9.1
Bihar	8.9
Uttar Pradesh	6.1
Madhya Pradesh	5.7
Himachal Pradesh	4.4

 

 

 

 

 

 

 

Export Destinations (2020-21): Bangladesh, Vietna., Nepal, Malaysia, Myanmar.

There are several varieties of maize cultivation done in India depending upon the soil and weather condition. Best soil condition is deep dark silt loam which gives better output of Maize production.

Some varieties of maize (corn) is listed below state wise which are produced in India :

 

S.No.	Cultivated Corn	Area of Maize Cultivation Practices	Season	Type
1	Gujarat Anand White Maize Hybrid-2 (GAWMH-2)	Gujarat	Kharif	Normal
2	MM 9344 (DMH 192)	Karnataka, Maharashtra, Andhra Pradesh, Tamil Nadu and Telangana.	Kharif	Normal
3	Bisco X 5129	Maharashtra, Andhra Pradesh, Karnataka, Tamilnadu	Rabi	Normal
4	Pusa HM-9 Improved (AQH-9)	Bihar, Jharkhand, Odisha, UttarPradesh and West Bengal	Kharif	Quality Protein Maize (QPM)
5	PMH 10 (Hybrid)	Punjab	Spring	Normal
6	PratapMakka-9 (EC-3161)	Rajasthan	Kharif and Rabi	Normal
7	CO 6	Tamil Nadu	Kharif	Normal
8	Partap Kanchan-2 WC-236 (Y)	Jammu & Kashmir and Uttarakhand	Kharif	Normal
9	HQPM-5	Across the country	Kharif	Quality Protein Maize (QPM)
10	Navin (D-741)	Uttar Pradesh	Kharif	Normal

Indian Maize is used for Mainly :-

Poultry Feed – around  47%

Livestock feed and food purpose – around 13%

Starch industry for industrial pupose – around 12%

Used in processed food – around 7%

Export and other purpose – around 6%