Product Quality Responsibility in India

Railroads

Indian Railways today is the largest railroad network in Asia and currently ranks as the world’s second largest network. With tracks that expand over 68,525 km in length, India’s railroads contains approximately 12,617 trains that carry over 23 million passengers daily. This is equivalent to moving the entire country of Australia that connects to more than 7,172 stations. Railways are one of the biggest forms of transportation in India and we believe that this will be a useful way to distribute our products throughout the country at a relatively low cost.

Air carriers

Air way is one of the fastest modes of transportation, but in most countries, can cost an abundant amount of money. On the other hand, India has the lowest air fare in the world paving way for us to use this as the main form of distributing our products. India has approximately 346 airports but with the large population and cheap flights, India’s airports have struggled to manage the chaos.

The major problems consist of outdated facilities and not enough paved runways, which unfortunately results in over congestion and long delays.

Ocean carriers

India has a range of 14,500 km different waterways in which approximately 74 bulk carriers, 20 container ships, 571 general cargo, 126 oil tanker, and 883 other forms of shipping units are distributed throughout the country. With a vast majority of the country along the shoreline, we believe ocean carriers are also another great way of distributing our product throughout the nation. Although the large amount of waterways provide opportunity at a relatively low cost, ocean carriers are one of the slowest forms of transportation.

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Therefore, we would only use ocean carriers as a small portion of transportation.

Motor carriers

India has the world’s second largest length of total road network, only behind the United states. The country consist of 4,699,024 km paved roadways. Although they rank as one the highest in total roadways, the abundant population of 1,296,834,042 people makes it difficult for this form of transportation to be successful. The overpopulated area gives the country more congestion like airways, causing a problem for us to use this as a reliable form of transportation. Like ocean carriers, this transportation is something that we will still use but not as much as trains and airplanes.

Packing

Marking and labeling regulations- labeling is a very important aspect for products to be imported or exported in India. India requires several key things that must be included on the packaging, which include name and address of importer, common name of the commodity packed, net quantity in terms of standard unit of weights and measurement, and month and year of packing in which the commodity is manufactured, packed or imported. Compliance of the previous things listed must be reinforced before the import consignments are cleared by customs in India.

Containerization

the estimated container volume increased 9% in India from the last year. Containerization is something we will have to take in factor heavily because our reliance on ocean carriers. An advantage to containers is that it holds a large amount of goods to be disturbed.

Costs- shipping containers range from anywhere between $2,000-$5,000

Documentation required

Bill of lading

This one of the most vital documents in the shipping process in the Indian trade market. For a company to ship goods through containers, a BOL is required to be filled out which becomes a contract for the two businesses. A BOL lawfully demonstrates that the transporter has gotten the cargo of goods as described and now is devoted to delivering the goods in proper condition.

Dock receipt

The dock receipt is intended to give the exporter verification of conveyance of the payload to the carrier in great condition. This is another important aspect for the Indian trade market to consider when transporting goods in and out of the country.

Air bill

Legal document that entails merchandise sent by a international companies that provides data about the shipments containment and enables them to track it. There are usually multiple copies of this bill in order to ensure legal aspects of the businesses. This would be an important bill for Nike to examine because of the large investment into air shipments throughout India.

Commercial invoice

This is a legal document among the distributor and the consumer that clearly states the sold material and the amount customer needs to pay. The commercial invoice is a very important document used by companies to determine custom obligations of the business to business operations in India.

Pro forma invoice

This is a preliminary bill of sales sent to the purchasers prior to the delivery of goods. The invoice usually entails the goods purchased or the shipping weight and the cost of transportation.

Shipper’s export declaration

A formed completed by the exporter at the export that serves as a purpose to provide amount, nature and value of the goods exported and as an export control document. (usually $2,500 of higher in India)

Statement of origin

This serves as a declaration by the exporter to receive, produced, manufacture or process a good in a particular country. This is an important part of international trade and something we must take into consideration when shipping goods to India.

Special documentation– this only applies to certain countries and India is not one of them

Insurance claims The different insurance claims for business in India include the following: Credit liability, Environment liability, Product Liability insurance, Commercial general liability insurance, Directors and officers Liability Insurance (D&O), Employment practices liability insurance (EPLI), Clinical trials liability insurance, & Crime insurance.

Freight forwarder This sector has not successfully kept on pace with the rising demand and has negatively impacted the economy. Improvements in this industry need to be reinforced in order to support the country’s 1.1 billion population, economic growth, and poverty in India.