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WeekDay: Tuesday Date/Time : Nov 21, 2017 8:53:30 PM /Paksh Shukla , Tithi at Sun Rise: 3 , Nakshatra: Moola Sun Rise (Delhi): 06:52:35 Sun Set(Delhi): 17:21:14 Ascendant (Delhi): Gemini:026:20 RK: 14:44:04 to 16:02:39

 

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It must be remembered that there is nothing more difficult to plan, more doubtful of success nor more dangerous to manage , than the creation of a new system. For the initiator has the enmity of all , who would profit by the preservation of the old institution and merely lukewarm defenders in those who would gain by the new one.

-Machiavelli "The Prince" (1519)


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Last Login by Gopinath RaoK /HPEP, Hyderabad 21-November -2017 20:19








Key Business Challenge:

 

  1. Swelling Order Book   and Import Shipments
  2. Meeting Regulatry and Compliance Framework
  3. Unable to Control Contengent Liability
  4. Controlling Demmurages/Container Detention
  5. Each Unit with its own ERP like systems and MM Import/Foreign Exchange Implementations
  6. Monitoring & Control, Data Analysis

 








Project Charter:

 

  1. Facilitating Customs/Port  related Material Services.
  2. Tracking Stages of Material Shipment/Customs Clearance/Despatches
  3. Compliance to Regulatory Framework
  4. Risk Control

 








Stake Holders:

 

  1. Manufacturing Units/Importing Units Purchase Sections/MM-FE Sections related Material Services.
  2. Clearing Offices looking after various ports of Discharge
  3. Manufacturing Units Finance Sections looking after Material Pricing
  4. Monitoring Agencies
  5. Regulatory Government Agencies
  6. Service Providers








SYSTEM FEATURES:

 

  1. Company wide centralized System 
  2. Relatively easier to Change
  3. Standardization of process
  4. Internal Systems of Units not disturbed
  5. Information Sharing through collaboration
  6. Risk Mitigation
  7. Accelerate and Expedite Import Material Tracking
  8. Automation to increase the efficiency
  9. Reducing Total Cost of Ownership
  10. Integration with ERP-HR
  11. ISMS Compliant








The Project Team:

 

  1. Project Sponsor  ED(Regional Operations Divisions)
  2. Project Initiator  GM,ROD, Mumbai
  3. Project Incharge  M.G.Kargaonkar,Head MS(Imports), ROD, Mumbai
  4. Chandan Maurya, Jhansi
  5. Dilip Supekar, Bhopal
  6. Jayakumar S.R., EDN,Bangalore
  7. Julie Srivastava, ROD, Mumbai
  8. Narayanan R, Trichy
  9. Peria Samy C, Ranipet
  10. Pramod Kumar, Corporate Office, New Delhi
  11. Raj Sabapathy S,Head, ROD, Chennai
  12. Raja Sunder, Port Clearance Office, Chennai
  13. S.C.Goel, Haridwar
  14. S. Mehrotra, ROD(HQ), New Delhi
  15. Sanjay Prasad, ROD, New Delhi
  16. Subramanian K, Hyderabad
  17. Tej Prakash, ROD, Mumbai







SCOPE:

 

  1. Vessel Tracking
  2. Optimal Utilization MOA(Licences/Certificates Across the units)
  3. Online Contingent Liability/Value of Unclosed Bonds
  4. Accurate MOA Accountal (including CIF and Qty handling material qty unit code varieties)
  5. Tracking of BE/Docket with Customs.
  6. HSS/Bonding ExBonding
  7. PO Item wise Duty Break Up along with CIF value for SRV Pricing/MODVAT Claim.
  8. Custom Tarriff Head wise Import Analysis for providing inputs to GoI/Min of Commerce/Exim policy
  9. LR/GR details after clearance for reconciling with CNOTE.
  10. LR/GR Details for BOI/Purchase Resold cases for reconciliation at Unit end for reporting T/o etc. and follow up of MRCs.
  11. However for BOIs directly coming to Unit by mistake, or distribution to multiple units, MDCC not available accountal shall be done locally by the unit.
  12. Demmurages Analysis. Issue Raising and closing - Discussion Forum.
  13. Inter Unit Accounting.
  14. Manufacturing Unit JV Automatic preparation of Unit Ledger.
  15. Including Service Tax, TDS etc.
  16. Scalable for More Ports and BHEL offices e.g. ICD, MandiDeep for containerized Cargo through CONCOR. Bhopal international Airport.
  17. ERP HR, Validation
  18. Better analysis of Import SIT.
  19. Inputs for SRV Pricing.







The Process in Business Sectors:




    Specific to International Operations
  1. Served from India Benefits -Collection of export content of previous year and get SFIS scheme benefit.
    Business Sectors in general
  1. Pre Order
    1. Estimation of the content of Import material
    2. Compilation of Unit wise/Currency wise Import content (CIF Value)
    3. Estimation of duty value
    4. Incorporation of the impact of duty value and corresponding Project Authority/Essentiality Certificate in the offer.
  2. Post Order -
    1. Project Authority/Essentiality
    2. Allocation of value of CIF to units.





Manufacturing Unit

Pre Order

  1. Import material list to be provided to BS.

Post Order

    1. Compilation of Items based on Import Requirments.
    2. Application of Licence/Certificates from respective Authorities.
    3. Keeping Track of LC payments and Non negotiable documents.
    4. Sending of (Non negotiable documents)NNDs to RODs
    5. Sending of PO and MOA(Mode of assessment) Advice to ROD.
    6. Making LC Payment and release of Original Bill of Lading
    7. Sending of OBL to ROD
    8. CNOTE reconcilation
    9. Unit store to price SRVs using Bill of Entry Information from ROD.
    10. Item wise storage of Counterveiling Duty(CVD) for CENVAT/MODVAT etc.
    11. Shifting of Items across the projects and their accounting Closure of Bonds and vacating Liability (Reconcilation with ARE1,Chartered Engineer Certificates,Bill of Entries,Shipping Bills)







Overview: Material Services(Imports)

BHEL imports raw material, purchase resold, bought out items, balance of plants and capital items under various schemes governed by the provisions of various rules and regulations of government of India.   The imported items are to be registered at ports in the form of DGFT Licences, Project Imports, R&M Certificates, Power Certificates, Excise Certificates etc for assessment by Indian Customs under appropriate modes of assessment for collection of revenue.

The entire process of coordination with Customs, Port Authorities, Shipping Lines , CHAs etc. is taken care by the nearby BHEL offices like ROD Mumbai, Chennai , ROD New Delhi, EDN Bangalore, RC Puram, Hyderabad.

Importing units/divisions arrange for required certificates, licences etc for various projects from respective agencies and are registered at ports of discharge by clearing offices like RODs, and corresponding bonds are signed by BHEL against meeting export obligations and availing duty benefits.

BHEL operates through various Freight Forwarders and Shipping agents world wide for arrangement of freight logistics support. Clearance activities at ports and Cutoms is executed through CHAs.

Consequent to the dispatch of material, encashing of LC, receipt of negotiable instruments by units after retirement of documents and further  submission to ROD, the Bill of entry is filed. The Licences/Certificates are debited as per MOA in Bill of Entry.

After the payment of Customs duty, freight, port charges, Stamp Duty and issue of out of charge by Customs, the material is dispatched from port to site/unit or shifted to CHA godown under the supervision of ROD persons.

ROD keeps all the units updated about the status of various consignments with regard to statges of Customs Clearance, document shortages. Docket wise expenditure is consolidated and debited to units.








CLEARING AGENCY:

 

  1. Maintainig of Exchnage rates
  2. Vessel Tracking
  3. Registration of Certificates with Ports after obtaining them from Units
  4. Submission of Bonds with Customs and corresponding updation in Contingent Liability and Provisions.
  5. Opening of Dockets after receipt of Non negotiable documents
  6. Follow up with Shipping Line for IGM
  7. Decide the MOA on PO items and file Bill of Entry with Customs
  8. Debit MOA Certificates/Licences
  9. Debit to Bonds
  10. Get the Duty Bill from Customs after assessment
  11. Payment of Duty and raise debits to units
  12. Present the OBL to Liner and get Delivery Order
  13. Payment of Stamp Duty and Octroi etc,
  14. Handling of S-forms etc. and
  15. debit to unit Store the material in some godown if required.
  16. Bonding of Material before clearance
  17. in case of Non availability of MOA etc, in Bonded ware House based on Unit advice
  18. ExBonding of the Material Check for MDCC from Unit/Custonmer for taking store or despatch decisions.
  19. Provide SRV pricing elements to Units(CIF,BD,CVD,Sd, etc)
  20. CHA Payments and Debits to units
  21. Despatch Information to Units for CNOTE follow up, claiming T/O.

 







Role of Customs Clearing Agency (e.g. ROD)

  1. Ensuring PI file numbers updation in the system.
  2. Ensuring correct balances of MOA/Licences
  3. Generation of Docket for AIR Consignments
    1. Updating of Shipping Information e.g. B/L, Portof Despatch ,Vessel, Packing List,Containers,Invoices
    2. MOA Details
    3. Generation of Covering Letter for Documents and Docket.
  4. Completion of Docket Information before forwarding to CHA
    1. IGM Details
    2. Type of BE
    3. Ensuring correctness of MOA as provided by the Unit
    4. CTH and Applicable Duty Rates
    5. Notification no and payable duty rates
    6. Updating Freight/Port charges etc.
  5. Generation of Covering Letter and forwarding docket and documents to CHA.

 









Role of Importing Agency

  1. Ensuring MOA/Licence/PO data availability in the system.
  2. Generation of Docket for Sea Consignments
    1. Updating of Shipping Information e.g. B/L, Portof Despatch ,Vessel, Packing List,Containers,Invoices
    2. MOA Details
    3. Generation of Covering Letter for Documents and Docket.







Pre-requisites:

  1. Availability of POdata
  2. Availability of Licence/MOA  Data in the system