The Project On Al Gurg Fosroc Commerce Essay

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The central aim of this concerned project report is to comprehend all complexities pertaining to the export business of Al Gurg Fosroc, originating from the acceptance of an export order to the conclusive realization of the export proceeds.

During the course of the undertaken research I was able to examine and gain an understanding of the import and export policies of the United Arab Emirates with relation to the procedures adhered to by Al Gurg Fosroc, the various documentation mandatory for this concerned commercial activity, the significance of these documents at every level of the transaction and the substantial prominence to ensure the authenticity in the contents of the documents. Each level of the export process has been documented and elaborated on so that it makes an interesting read for a lay person who possesses no background in commercial trade.

The project on Al Gurg Fosroc was very informative and rewarding. It gave me an insight into the functioning of a well-organized and professionally managed company which operated on minimal human resources who were given higher monetary payouts for maximum output.

Possession of a 'value' brand such as Al Gurg Fosroc which markets superior and enhanced quality products for a specific concerned industry segment potentially leads to a rise in turn over which facilitates an edge over the competition. The company's marketing strategy revolves around global sale which sustains low stocks that prevents the outflow of redundant capital. Though the employment of distributors for its concerned products globally as well as in every GCC country, the company eliminated the necessity to sustain stock in different locations thereby functioning on minimal overheads.

As the entire Al Gurg Fosroc material is associated to application, the company appoints qualified personnel to the positions of applicators in the construction field who are responsible for the successful application of the concerned material. With the establishment of this coordinating system, Al Gurg Fosroc possesses unmitigated dominance of the market, which is not just confined to sales but also spreads to the field of application and ensures that all of their concerned products are marketed by their appointed distributors and applied by their trained applicators. By the utilization of this methodology, the company maintains control on the sales as well as the application aspect of their products and acquires commissions on both aspects.

On account of its strategic location in the Middle East during the period of construction boom, Al Gurg Fosroc was able to successfully acquire several contracts.

The foremost business of Al Gurg Fosroc revolves around the supplementation of finished products to its clientele in various locations, this requires a substantial magnitude of export documentation with specific and precise compliance to trade finance documents. The report reveals the export procedure utilized by the Al Gurg Fosroc and the hindrances encountered in the export process as well as the approaches saught to resolve them.

My project with Al Gurg Fosroc provided me with great satisfaction, immense technical knowledge and trade know how. I was provided with firsthand particulars of interactions with clientele, the generation of documentation right from the quotation stage to the receipts and acknowledgements of payments. Above all, my association with the company provided me with a dogma that - through the possession of a superior quality product, a brand name brought to be realized globally, and a competent marketing strategy, the creation of a successful and thriving export business is on the horizon even without the significant maintenance of huge stocks as economic benefits could be acquired when provided with the appropriate place and the appropriate time.


The primary aim of this project report is to progressively ascertain all the complexities associated with the export business commencing from the acquisition of an export order to the conclusive realization of export proceeds. The contents of this concerned project would provide immense assistance to any prospective individual who aspires to pursue a career within the logistic industry and would potentially bestow him with valuable information on methods to overcome barriers and hindrances encountered in the export process industry.


Understand the export polices in the United Arab Emirates

Understand the export operations undertaken at Al Gurg Fosroc

Understand in detail the export documentation and process with compliance to the UAE laws and regulations

To provide customer satisfaction.

To reduce cost of transportation.

To plan dispatches 48 hours before so as to allow for liberal time frames intended for consolidation of materials.

To schedule only 2 trailer per day for each region (Oman, Kuwait, Bahrain and Qatar) to avoid pile up at customer warehouse.

Organization Profile

Al Gurg Fosroc Vision

Position itself as a reliable, professional as well as responsible business partner. 'Our customers will choose us because we offer an efficient and value-added service'

Optimize our commercial processes to maximize returns to our shareholders and business partners

Create a working environment in which knowledgeable and motivated people will build rewarding careers through formation of high-performance teams"

Mission Statement

To become the most prominent construction chemicals company globally; at least doubling in size organically by 2012; conquesting over the competition by networking on best practice.

Fosroc International originated in the United Kingdom, and has since amplified its expansion globally. One of the parent company's many ventures has commenced in Dubai with the collaboration of Essa Saleh Al Gurg Group in the year 1975. The latter company centers its business around the assistance of constructive solutions for a variety of projects across a broad range of sectors including commercial, industrial, residential, and marine infrastructure.

Key Activities carried by Al Gurg Fosroc are mentioned below:-

Manufacturing Plant in Rashidya

Distribution warehouse centre

Local customer service for Dubai customers

Export customer service for regions like Oman, Kuwait, Bahrain, Qatar and inter-companies operating abroad.

Fosroc employs over 1,700 employees

Al Gurg Fosroc is a global leader in the delivery of tailored Constructive solutions for virtually every type of construction project. The company upholds the combination of superior quality products, expert technical support, customer service and innovation.

The global presence of Fosroc is made known by its 16 group companies located world-wide which facilitates exports to over 70 nations.

Al Gurg Fosroc possesses above 70 years of experience in the distribution of specialty chemicals and have thus acquired the acknowledgement as market leaders in quality production and the supply of a major comprehensive range of high performance construction chemicals supplementing the construction industries in building and civil structures above and below ground levels.

Al Gurg Fosroc have fostered substantial reputation for innovative products in concrete admixtures, concrete repairs, grouts and anchors, industrial flooring , joints and seals, waterproofing and protective coating.

Al Gurg Fosroc product portfolio comprises of:-

Additives pertaining to the cement and ready mix precast and sprayed concrete industries.

Formulated cement and polymer based products for grouting, concrete repair and flooring markets.

Formulated and polymer based products for the waterproofing, sealing and protection of structures

Special tailored solutions to customer specifications

Al Gurg Fosroc's continual commitment to total quality management system has led to its ISO9002 certification in December 1994, making it the first construction chemical company in the Gulf region to achieve this prestigious award. In order to maintain equilibrium with the present market demands, Fosroc has chosen the policy of continuous improvement, which led to its ISO 9001:2000 certifications in July 2003.

Al Gurg Fosroc was awarded the ISO 14001 certification in the 1996 market, making it the first construction chemical's company as well as the third company in any sector in the Gulf region to receive this award. As a clear indication of continual improvement in safety, quality and environmental standards, it was awarded the OHSAS 18001 certification in October 2004.

Constructive Solutions provided by Al Gurg Fosroc for some of the renowned projects over the world.

Asseyedah Mosque - Saudi Arabia

Burj Al Arab - Dubai - UAE

First Solar - Malaysia

GK Tunnel - South Korea

Godavari Bridge - India

Hyundai Shipyard - South Korea

King Fahd Port - Saudi Arabia

Lafarge Cement Mill Mill - Malaysia

Reliance Tank Farms - Gujarat

St Helens Hospital - England

Underhill House - England

West Rail - Hong Kong

Products Offered byAl Gurg Fosroc

Admixture Range


Super plasticisers

Air entrainers

Foaming agents

Integral waterproofing

PC's for Precast and SCC

Corrosion inhibitors


Cementitious - general purpose

Cementitious - high flow

Cementitious - high strength

Epoxy - low viscosity

Epoxy - low exotherm

Polyester - anchoring grouts

Industrial Flooring

Shake-on hardeners

Cementitious self-levelling

Epoxy coatings and screeds

Polyurethane trafficable deckings

Tar-epoxy anti-skid dressing

Hybrid PU-cementitious screeds

Hybrid epoxy-cementitious toppings

Epoxy terrazo decorative screeds

Decorative cementitious toppings


Aliphatic acrylic



High-build epoxy

Coal tar epoxy

Chemical resistance


Acrylic emulsions


Two part polysulphide

One part MS polymer

Two part polyurethane



Bitumen putty

Bituminous rubber




Cast in-situ membranes

Self-adhesive membranes

Gas resistant membranes

PVC and Hydrophilic waterstops

Drained cavity systems

Geocomposite drainage systems

Watertight concrete admixtures

Polymeric and Hydrophilic sealants

Concrete Repair and Protection

Repair mortars and micro-concrete

Resin injection systems

Protective coatings

Carbon fibre sheet & strip

Galvanic anodes

Impressed current cathodic protection

Chloride extraction


Al GurgFosroc Strategic Objective

Change to a high performance team culture

Restructure the company

Grow selectively, faster than the market

Create six strong regional pillars


M. East

Gulf States


North Asia


Business Values (

Fosroc prides itself on the possession of the subsequent values -these values demonstrate a reflection of the work culture of the employees which subsequently form a major aspect of Constructive Solution for the customers.

The values to which the company aspires include;


Fosroc believes safety is paramount with respect to products as well as the company's interactions with its customers.


Fosroc delivers on its promises to its clientele and delights in exceeding their expectations


Fosroc works in close relation with its customers from varied and diverse geographical, cultural as well as political credentials.

Fosroc is motivated by its mutual interest in the global construction market as well as respects diverse backgrounds and beliefs

Mutual Trust

Fosroc believes in open, long-term relationships delivering mutual value


Fosroc will persist to invest in its people to ascertain that their knowledge of innovative solutions is contemporary in an ever changing and advancing world


Fosroc prides itself on its company's expansion as well as its heritage; it also strives to deliver positive accomplishment in the future with respect to its business through the success and satisfaction of its customers as well as by the medium of exceptional customer relationships

Al Gurg Fosroc Culture

The following refer to the mutual aspirations and motivations of Al GurgFosroc with respect to its employees.

The company aspires for the development, improvement of competency as well as the provision for superior and promising careers for its human resources. Therefore training and development are vital aspects for the employees of Al Gurg Fosroc, and it is ascertained that they are imparted onto them.

The company strives to maintain a positive work environment which is sustained on a culture of global diversity and impartiality.

Al Gurg Fosroc recruitment strategy utilizes the concept of an "ideal candidate" to substantiate that all vacancies pertaining to the company are occupied by the most appropriate candidates. Recruiting 'tomorrow's talent' (succession planning) is a significant managerial responsibility.

The work environment of the Al Gurg Fosroc business revolves around the supplementation of the permanent staff with a skilled assembly of temporary employees. The company strives to its potential to ascertain that all the employees, permanent as well as temporary work in a very professional and respectful environment throughout their tenure at Al Gurg Fosroc.

Al Gurg Fosroc is a meritocracy wherein the aspect of performance ultimately establishes the progress quotient. An essential responsibility pertaining to every manager is to ascertain that the employees working under his/her management function and accomplish at a superior platform.

The Al Gurg Fosroc organization has an objective of ascertaining talent and potential within the company; and therefore the development of future leaders is a vital management responsibility.

Members working as part of a concerned team appreciate constructive guidance and recommendations imparted upon them.

The company's objective is to deliver its team members with the competencies essential for their concerned responsibilities, system utilization as well as to administer management competencies. Individuals are accountable for their own advancement as well as development and the company supplements the environment to assist with the progress.

Al Gurg Fosroc could be illustrated by a nonexistence of employee relations conflict. The company strives to have direct, positive relations with all its employees.

Al Gurg Fosroc - Corporate Social Responsibilities

Quality, Environmental, Health & Safety

Al Gurg Fosroc considers the management of quality, environmental, health & safety subjects as fundamental aspect of its operations in order to develop, manufacture as well as deliver specialty chemicals with respect to its business unit industries at the lowest plausible cost, by the observance of precautionary measures so as to ensure minimal adverse effect to the native environment.

This necessitates the training and participation of all the employees to meet the company's obligation towards quality, the environment as well as health and safety.

The company's documented system, an Integrated Management System based on ISO 9001, ISO 14001 and OHSAS 18001 illustrates the organization, obligations and activities commissioned by Al Gurg UAE.

Al Gurg Fosroc UAE develops and manufactures products in a strategic and effectual method so as to fulfill its customer's requirements with respect to technology, reliability, performance and availability.

The company's emphasisis the utilization of natural resources with a responsible approach, strive to diminish the consumption of the concerned resources, recycle in instances where reuse is not possible, and thus diminish the output of waste and emissions.

Integrate safety and precaution into all procedures and products; eliminate risks and hazards wherever achievable, diminish risks to a minimal level where they cannot be eliminated completely.

The implementation of this concerned policy is brought about by the adoption of an Integrated Management System by all the Al Gurg Fosroc employees. The Al Gurg Fosroc management team and employees are committed to persistently advance the efficacy of the IMS management system and the IMS Objectives with respect to the outlined targets.

Corporate Governance

Integrity is considered to be one of the prime assets of Al Gurg Fosroc. Safeguarding this asset is the responsibility of every employee of the company. On account of the corporate governance frame-work, a Supplier Ethics and Code of conduct has been brought into existence. This code pertains to all the employees, partners and customers with the inclusion of all agents, consultants and suppliers. The code is devised to assist parties comply with the law and sustain the highest standards of ethical conduct. The code emphasizes on basic principles and an approach for all stakeholders as well as partners to accomplish the common aspiration of conducting ethical business.

Technology & Knowledge of Al Gurg Fosroc.

The requirements of the current global market underline the development of technology and this is one of the prime aspects of Al Gurg Fosroc product development.

For a period of over 50 years, Al Gurg Fosroc has accumulated vast wealth of intellectual property as well as market experience. The company possesses an extensive portfolio of consistent and quality products which are eminent throughout the construction industry globally.

The company's technical potencylies in the knowledge of the appropriate chemical technology that works effectively with the specified applications to resolve the customer's problem. They have a reputation for the identification and organized composition of all the elements vital to provide superior solution.

During the process of product formulation, Al Gurg Fosroc also emphasizes on the ease and simplicity of application in addition to the performance quotient. In current times, the success of a construction project is determined on its completion time-frame, cost as well as quality of workmanship, and therefore it is of utmost importance to refrain from committing financially expensive and time consuming errors.

The company's interest revolves around the customer's application and construction solution - and therefore the absence of the production of a specific 'chemical' - facilitates the flexibility to provide a superior technology. The company's cumulative experience as well as resources are directed towards the strive for superiority in this concerned arena.

Al Gurg Fosroc's central technology unit leverages the best expertise and technology in the business, building on the market knowledge of a wide network of technical specialists operating locally throughout the world.

Al GurgFosroc - Management Vision, Company Values and Culture

Al Gurg Fosroc is managed by a team of qualified and experienced professionals who possess extensive experience and knowledge of the chemicals and construction industry. A majority of the members of the management team have been employed in the Gulf region for prolonged periods of time which provides them with a professional edge over new and inexperienced competition where contacts are concerned

A copy of the organization chart is produced here below:

Management Committee


Customer Service

Theoretical Background

Introduction about UAE

The United Arab Emirates expands over a geographical land mass of over 83,600 sq. km (32,270 sq. miles) and is located on the Arabian Peninsula within the Arabian Gulf.

On account of its strategic location and extent mid Europe and the Far East, the UAE is the evident selection of location for multinational companies which desire to influence profitable Middle East, sub-Continental and African markets, with their combined population of 1.4 billion people.(

The United Arab Emirates possesses an exceptional characteristic of being a country which facilitates trade by the asset of multicultural immigration and the distribution of population with high consumption levels. The liberal trade policies assist the country to authorize the unrestricted movement of goods and services. In accordance with the World Bank report on tax remuneration in the year 2010, UAE is included amongst the top 10 economies in the world with the lowest TTR (total tax rates) and minimal

compliance necessities for the conduction of business (Hoath 2009). As part of the policy, the UAE considers foreign trade to acquire a substantial position in the country's economy. Free trade is deemed to be a vital characteristic for the advancement of efficiency.

Important point about UAE in relation to trade (

Dubai with a GDP growth of over 16.7 % per annum has transformed itself into the swiftest growing economies globally. Furthermore, during the progression of the last decade, Dubai's economic development appeared to be the fastest.

Approximate estimates of $ 3.5 billion are being expended on acquisitions in the maritime sector of Dubai.

The third-largest established oil reserves in the world.

The fourth-largest gas reserves world-wide.

The import/re-export ratio promotes the UAE to the third most significant re-export center globally, trailing not far behind Hong Kong and Singapore.

The ports of Dubai are already known to be the fundamental gate ways of re-export and redistribution, along with channels in Kuwait, Jordan and Oman.

World container port traffic have speculated to have risen by an astonishing 74 per cent to 92 per cent in the year 2010 and the container terminals in the Middle East as well as Indian Subcontinent have been the prime areas of under-capacity, bearing the consideration of the speculated growth figures.

The ports of Dubai are positioned at thirteen globally with a record of the management of5.15 million TEUs in 2003, which was a noteworthy increase by 23% from the previous year's 4.19 million TEUs. Therefore, these concerned ports conducted 63.62 million metric tons of cargo in 2003.

Dubai's foreign trade is developing at the rate of 21% per annum.

Dubai's Logistics Industry has been displaying15% growth per annum

The ports of the UAE possess a significant development and expansion agenda which is valued at $ 2.5 billion, this development will facilitate in the organized conduction of the ever increasing trade traffic.

In recent times, the Jebel Ali Free Zone Authority (JAFZA) declared an extensive expansion with amplified management capacity to 21.8 million TEU by 2020. By the year of 2005, a 5.8 million TEU capacity was speculated to have been added.

The Port of Fujairah is presently considered to be the world's number three bunkering center, and in the following time to come would be at par with its predecessors Singapore and Rotterdam.

Import Definition

An affirmation that is administered in the event of merchandises being imported into the local market from foreign countries against the payment of custom duty or duty exemption, whichever is applicable. (

An organization which has been provided with a license to import merchandise into the country is indicated as an Importer. In order to import merchandise into Dubai, an Importer should possess an authorized Trade License which is issued by any of the License Issuing Authority in the U.A.E. and the concerned license should be registered with the Dubai Customs and the Ministry of Dubai. The Importer possesses the opportunity to execute import procedures online on Dubai Trade or physically by the medium of Ports &Customs Documentation Centers. To gain admittance to the Dubai Trade portal electronic services the clientele should primarily be registered with Dubai Trade. The process of registrations accessible online on the Dubai Trade Portal (

The Import procedure in order to import merchandise into Dubai is as follows:-

It is mandatory to the importer to possess the following documentation in original from the exporter (manufacturer)

Original Bill of Lading, Commercial Invoice Packing List and Certificate of Origin.

2. On the basis of the Estimate Arrival Date (ETA), the importer should essentially communicate to the shipping agent to submit the original Bill of Lading and make a payment of the relevant charges. Therein, the shipping agent will present the importer with a Delivery Order. It is mandatory that the Delivery Order has to be issued3 to 4 days prior to the date of arrival of the vessel. The Importer should authenticate that all legal formalities related to the clearance of the cargo (step 3 to 8) are completed prior to the expiry date of the Delivery Order. The release of the cargo to the importer will be impeded by DP World on the expiration of the Delivery. In scenarios where the delivery order expiration date has lapsed, it is mandatory that the importer extends the period of the Delivery Order and the importer may be liable to pay the Shipping agent additional charges for the provision of the extension.

3. Thereafter the importer can submit the Import Declaration application pertaining to the Dubai Customs clearance through the internet portal of the Dubai Trade website. Payments in relation to the custom duties as well as other fees could be done online through the medium of the CDR account or E-payment using a credit card. In scenarios where restricted goods or duty exempted cargos are being imported, the importer must organize for the relevant permits from the commissioned Permit Issuing Authority prior to the lodgment of the Customs Import Declaration.

For the importation of merchandise from beyond the borders of the country the following documentation is required:-

1. Commercial invoice from the exporter directed to the importer particularizing the total quantity, description of the merchandise as well as the cumulative commercial value pertaining to every item.

2. Original certificate of origin authenticated by the chamber of commerce at the country of origin particularizing the origin of the goods.

3. Comprehensive packing list as per weight, mode of packing as well as HS code for every individual article comprised within the shipment.

4. Import permit from the competent agencies in the event of importing restricted goods or duty exempted goods.

5. Dubai Customs will authenticate and assess the information presented, pertaining to the payment of customs duties and import approval. Dubai Customs will scrutinize, check and inspect the goods through the medium of their concerned authorities prior to the discharge of the cargo to the importer.

6. During the submission of the Import Declaration application, if the preferred method of payment is the CDR account, then the importer would be able to print the Customs Import Declaration instantaneously on completion of its approval. In case thes elected medium of payment is the e-payment, then the importer is required to utilize the E-Payment service to make the payment for custom duties and fees utilizing a valid credit card. On efficacious payment conclusion the importer can print the Customs Import Declaration.

7. Dues pertaining to DP World could be remunerated by the importer at any given time on subsequent acceptance of the Delivery order from the Shipping agent. The importer should utilize the DP World Payment e-service on Dubai Trade portal in order to render a payment to DP World utilizing the Advanced Deposit account or the e-payment gateway. The e-payment gateway provides for the importers to render payments utilizing credit card, e-dirham card or direct debit.

8. The importer can assess the arrival details of the vessel utilizing the Vessel Enquiry e-service as well as the container discharge status using the Container Enquiry e-service.

On the disembarkation of the concerned container, the importer can make arrangements for a transport company to accept the delivery of the cargo/ container from DP World.

9. The importer could also produce an e-token through the medium of the Dubai Trade portal. The e-Token system conductsthe flow of trucks arriving into as well as exiting from the Jebel Ali Port. The e-Token number is an exclusive identifier produced by the Dubai Trade portal, where a user indicates a specific date and time slot to receive or deliver containers to and from Jebel Ali Port utilizing a registered truck as a medium of transportation. It is necessary for the importer to present this e-token number to his designated hauler. The hauler can then make an entry into the Jebel Ali port by quoting the e-Token number or presenting the e-Token slip to the security at the Jebel Ali port gates. DP World will deliver the containers to the designated hauler as instructed on e-Token. The hauler will be provided an Equipment Interchange Receipt (EIR) by DP World for each container which is transported out of the Jebel Ali port.

10. If scrutiny is needed in regulation with the Customs Import Declaration, the hauler must take the cargo/ container to the inspection premises of the concerned authority. On obtaining clearance subsequent to a conclusive inspection, the hauler can exit the Jebel Ali Free Zone by submitting a copy of the EIR to the security staff stationed at the Free Zone gates

Export Definition

In the field of economics, an export is any good, commodity or merchandise, transported from one nation to another in legal compliance with the trade laws. Export and its policies are an integral part of international trade. No custom duties pertain to goods which are locally purchased, manufactured or distributed. (

An organization which manufactures as well as markets goods and services to foreign nations is referred to as an Exporter. For the purpose of exportation of goods and services, an Exporter should possess a valid Trade License issued from any of the License Issuing Authority in the U.A.E. and should be registered with Dubai Customs. The Exporter possesses the opportunity to lodge the export procedures online on Dubai Trade or physically through the medium of Ports &Customs Documentation Centers.

To access the Dubai Trade portal electronic services the customer must enlist himself with Dubai Trade. The registration procedure to secure a Customer Code is made available online on the Dubai Trade Portal (

The Export procedure to export material beyond the borders of the UAE is as follows:

1. On reception of a sales order, an Exporter primarily submits into a contract with the Shipping Agents to transport his cargo from Dubai to the Port of Destination of Importer and arranges for an export booking with the concerned Shipping Agent.

2. The Shipping Agent in turn makes a request to DP World for the release of an Empty Container to facilitate the export of the concerned consignment. This concerned service (Export Booking) can be appreciated electronically through the medium of the Dubai Trade Portal where the Shipping Agent presents particulars of the Container (size; type etc.); Outbound Vessel details and ascertains the Exporter.

3. The Exporter or his delegate is required to designate the hauler online. The designated hauler would be responsible for both, the retrieval of the Empty Container from DP World and the delivery of the Export Container. The Exporter could also assign a Preferred Hauler whereby any Booking made in favor of the Exporter by Shipping Agents is promptly nominated to the Preferred Hauler. In case, the Exporter aspires to utilize his personal trucks for the purpose of transportation then he can directly generate an Electronic Token on Dubai Trade. This service (E-Token) facilitates Exporters to reservation prior engagement with DP World in order to retrieve the Empty container.

4. The nominated Hauler there after electronically approaches Dubai Trade Portal and generates an e-Token for the retrieval of the Empty Container from DP World. The Hauler is obligated to deliver his truck particulars and ascertain the time of his arrival to DP World Port from the offered time-slot. The e-Token is intended to provide assistance with the seamless movements of container to and from the Port.

5. DP World confirms all compliances and loads the Empty Container onto the Hauler's Truck who in turn transports the Container to Exporters Warehouse.

6. The Exporter coordinates for the packaging of the cargo intended for export in the Container and then notifies the Hauler.

7. The Hauler generates an e-Token, this time meant for the Export Container and consequently picks up the Container from the Exporter's Warehouse and transport sit to DP World.

8. DP World confirms all compliances and off-loads the Export Container in the assigned area for loading on the concerned Vessel.

9. The Exporter also presents an Export Declaration online describing the cargo information with the inclusion of the invoice information. Dubai Customs certifies the information and on compliance of all the necessary requirements grants the Export Declaration.

10. The Exporter finalizes the inspection regulations if needed (conditioned to cargo type).

11. Thereafter the Exporter makes an online payment to DP world in accordance with the Export of Container.

12. Separately, an Exporter makes contact with the Chamber of Commerce to attain the Certificate of Origin that has to be dispatched to the Importer. Furthermore, an Exporter is required to acquires supplementary permits in relevance to type of goods being exported.

13. DP World ensures various compliances which includes the approval of Export Declaration; attainability of Container prior to the cut-off time etc., prior to the final loading of the Export Containers onto the Vessel. Any malfunctions or hindrances lead to the Shut Out and the Shipping Agents are duly notified. Shipping Agents are granted a variety of online services to supervise the various compliances.

14. The Shipping Agent releases the Bill of Lading to the Exporter, conventionally subsequent to the departure of the vessel, which is the Contract of Carriage and comprises of the particulars of the cargo. The Exporter is required to dispatch the original Bill of Lading along with the Invoice; Packing List; Certificate of Origin etc. to the Importer to permit him/her to clear documentation with the Customs of the Importing Country.

Import for re-export:

This concerned declaration is administered in the scenario of the importation of merchandise into the country for the objective of re-exportation, wherein the custom duties will be paid in the form of a deposit that would be reimbursed upon displaying a proof of re-exporting the same merchandise to a non-GCC state or states. (

This concerned declaration is processed solely when goods are imported from beyond the borders of the country for utilization in exhibitions, seasonal markets and analogous instances or in construction projects and scientific researches and have to be returned in the identical specifications in which they have been imported. Payable customs tariff for this kind of goods shall be secured (excluding tyres, spare parts and batteries) in the form of cash deposit or a bank guarantee to be reimbursed to the company upon re-exportation of the goods outside the country, taken into free zones, customs warehouses or on subsequent payment of the concerned customs duties in accordance with the regulations.

In the global business environment trading countries particularly the exporting and importing nations can be largely acknowledged however a much diminished proportion of them are distinguished as re-exporting countries. These re-exporting nations are not recent introductions, but their scale of operations have magnified in the recent past (Simon-Erik Ollus and Heli Simola, 2007).

On a global scale the re-exports amounted to 5-15 percent of the total exportation industry. At current times, dozens of nations are involved in re-exports the largest amongst them being Hong Kong, Netherlands and the United States. Re-exports further more assume a substantial character in the total volume of exports in small islands like Cyprus and Bahamas. In Hong Kong the share of re-exports has risen from 20 percent in the 1960's to the existing level of 90 percent (Andriamanjara

General Provisions

1. The importer must possess a valid importer code from Customs.

2. Goods should be in compliance of consistency with the occupation of the licensed company.

3. Special Cases:-Restricted Goods: Import permission from the competent authority will be necessary. The authority varies in accordance with the nature of the goods.

Goods imported by Industrial Licensees: e-exemption appeal approved by the Ministry of Finance and Industry along with a copy of a valid industrial production license is necessary.

Imports for Non-dutiable Authorities and Organizations: Customs duties exemption appeals possessing the applicable stamp or a letter from the exempting or supervising agency is necessary.

Diplomatic Goods: A diplomatic exemption from the Ministry of Foreign Affairs, either from customs duties or scrutiny or both will be required.

4. If the declarant does not succeed in the submission of the original certificate of origin or invoices, a deposit amounting to AED 500 for every piece of documentation is required to be paid which will be reimbursed upon the presentation of the original documentation, but within 60 days from the bill date or else the deposit will be forfeited.

5. In circumstances where the HS Code cannot be ascertained within the transaction, the declarant shall be indicated to the tariff officer who shall ascertain the appropriate HS Code in compliance with the description of goods against a payment of AED 25 for every code.

6. In scenarios where any disagreements arise from classification, the declarant shall present a written objection to the Tariff department. If such a disagreement persists subsequent to the issue of the tariff department's judgment, the subject shall be referred to the Classification Dispute Settlement Committee (here the goods shall be released against a cash deposit or bank guarantee equivalent to the higher proposed duty rate).

7. In the scenario of any dispute resulting from customs valuation, the declarant shall be referred to the Customs Valuation Department.

8. The goods may be subjected to scrutiny preceding their conclusive release.

Documents required for the import, export and re-export of goods

Import Documents

1. Import goods declaration.

2. Delivery order.

3. Original bill of lading.

4. Original authenticated invoice.

5. Original approved certificate of origin.

6. Packing list with HS codes.


1. Import goods declaration.

2. Delivery order.

3. Original bill of lading.

4. Original or copy of the invoice.

5. Original or copy of the certificate of origin.

6. Packing list with HS codes (not required for personal effects).


1. Import goods declaration.

2. Original manifest.

3. Original bill of lading.

4. Original invoice.

5. Certificate of origin from.

6. Packing list with HS codes.

Export Documentation

1.Copy of the bill of lading if it is by sea, Original Airway bill for air shipment and road manifest for land shipment.

2. Sale Zone Licensee, invoice addressed to a licensed importer in the nation specifying the total quantity, description of the goods, currency and comprehensive estimation of the total commercial value of each individual item.

3. Original & detailed item wise invoice with HS Codes classification from the shipper address to the consignee.

5. Certificate of origin authenticated by the Chamber of Commerce in the country of origin specifying the origin of goods.

6. Comprehensive packing list as per weight, process of packaging and the HS code for each individual article comprised in the shipment.

7. Import Goods Declaration Form.

8. Insurance if required by the consignee.

Brief Description on the import, exports and re-exports on UAE (


Dubai is superlatively poised to benefit as a trading hub for consumer goods, due to its encirclement by rapidly emerging markets of the Subcontinent and Africa. In accordance with the Dubai World Trade Center statistics, Dubai manages $17bn domestic imports on a yearly basis and it is a entrance of opportunity to a $150bn regional import market with a catchment population of 1.4 billion. A substantial increase in imports was observed for manufactured goods, machinery, and transportation equipment, which when combined accounted for 80% of the total imports. The imports have developed at a fast pace in the recent past on account of a continual growth in the non-oil economy, which made up a fifth of the UAE's total imports of goods. Given below are the statistics depicting the country-wise import particulars of Dubai's imports by value of the top twenty countries.

Statistics show that Dubai's imports influence about 73.6% of the total value for 2009, with 234.3 billion AED. Pearls, precious stones and metals secure the lead with a value amounting to 88.2 billion AED in 2009 and a diminished rate of 20.9% when contrasted against the statistics ofthe year 2008 with a contribution of 27.7% to the total Imports of 2009. Machinery, sound recorders, TV and electrical equipment with value amounted to 70.9 billion AED in 2009 and a dropped rate of 20.7% compared to 2008 with contribution of 22.3% to the total Imports of 2009. Vehicles, aircraft and vessels with value amounted to 32.6 billion AED in 2009 and a dropped rate of 45.1% compared to 2008 with contribution of 10.2% to the total Imports of 2009.


It is eminent that Dubai's miniature and open economy has been facilitated primarily by external trade.

In current times, the trade and repairing services sector characterized the largest share of Dubai's economy which emphasizes the Emirate's position as a trade hub in the region.

Dubai's character as an exporter has been humble with respect to both total trade value as well as diversification of exported products, on account of its restricted capacity and natural resources of the Emirate. A diminished group of product classifications have been leading the country's exports to other nations globally (these chiefly comprise of aluminium and articles thereof; sugars and sugar confectionery; pearls, precious metals, stones & articles thereof; iron & steel; and ceramic products). These actualities insist the necessity to increase Dubai's exports and discover new destinations for them. Alternatively, given the substantial share of re-exports in total foreign trade, Dubai's role as an intermediary re-exporter has straightforward positive and affirmative effects on its economy as the economies of producing nations expand and the demands of destination countries increase. The ever increasing growth in the economies of the producing nations, with which Dubai conventionally possesses healthy trade relations, has led to significant growth in its re-exports. Statistics from Dubai Department of Ports and Customs depict that the Emirate re-exported goods to more than 195 destinations. All these evidences suggest the significance of re-exports to trade and commerce in Dubai.

Even though Dubai is not yet an industrial producer, this fact does not avert it from possessing a vital role in global trade. More definitively, Dubai endeavors to operates an intermediary between producing nations -with comparative or absolute advantages- and nations in requirement for their products. The subsistence of these intermediary facilitations result in efficient benefits to the parties concerned. By concentrating on the question of whether to utilize an intermediary or engage in direct trade with the origin country and thereafter determine on the supplier or trader to deal with, Dubai has demonstrated to its exporter companies that though the utilization of an experienced and knowledgeable intermediate, the export transaction would generate higher profit margins, lower transportation costs and facilitate smooth trade and thus would provide to be mutually beneficial to all the involved parties.

Dubai export trade contribution of the highest five sections is 86.7% of the total value for 2009, with 45.5 billion AED. Pearls, precious stones and metals obtain the lead with value amounted to 32.9 billion AED in 2009 and a growth rate of 37.5% compared to 2008 with contribution of 62.7% to the total Exports of 2009. Base metals and articles of base metals with value amounted to 4.2 billion AED in 2009 and a dropped rate of 4.9% compared to 2008 with contribution of 8.0% to the total Exports of 2009. Followed by Prepared Foodstuffs, beverages and tobacco with value amounted to 3.5 billion AED in 2009 and a growth rate of 16.8% compared to 2008 with contribution of 6.7% to the total Exports of 2009.


The leadership of Dubai has concentrated on the formation of superior commercial environment, benefitting from the exceptional natural harbor and on proficient experiences in conducting business with foreign merchants dating back to the early 1900s. Hence, it is prominent that Dubai has sustained to be a prosperous entry point for trade and commerce, facilitating as a port of entry to products and merchandise destined for other nations in the region. On account of its rapidly emerging gold and diamond industry, Dubai is also acknowledged as global gold and diamond center. Dubai's trade of gold and diamonds has attained exceptional heights in the recent years; with re-export value comprising of more than 26 percent of the total re-exports in 2004.

Major re-export destinations

Iran has been Dubai's largest re-export market, engrossing above 20 percent of Dubai's annual total re-exports; with the exception of the year 2004 in which it was surpassed by India. Products re-exported to Iran are of a varied spectrum, which range from foodstuff, textiles, electronics and electrical equipment, transport equipment to machineries. Total re-exports to Iran in 2004 was valued at AED 10.3 billion.

Re-exports to India comprised predominantly of gold and diamonds, and the dominance of these products had been on the rise. In 2004, re-exports of gold and diamonds to India rose to an exceptional value of AED 10.3 billion, or 89 percent of the total re-exports to India amounting to AED 11.6 billion. On similar lines, the trade of gold, diamonds and jewels have created Switzerland, Belgium, UK and Hong Kong as chief re-export markets of Dubai.

Alternatively, re-exports to the MENA and African countries are more diversified, with electrical and electronic equipment, transport equipment and machineries comprising of the major shares.

The greater diversity and small extent of instability, of Dubai's re-export market could be potentially assembled from the altering composition of top twenty destinations of Dubai's re-exports. Only Iran, India, Pakistan, Saudi Arabia, Iraq and Libya have been continually in the list for 2001 to 2004. The other destinations comprised of markets for goods which were not traded in consistent proportions annually; therefore, causing the dissolution of these markets from the list of top re-export markets for short periods of time. Even though Saudi Arabia persisted as a major re-export market of Dubai, its importance had been diminishing. From a share of more than 4 percent of Dubai's total re-export in 2001 and 2002, it has diminished to a mere 3 percent in 2003 and to less than 2 percent in 2004.

The potential target markets for Dubai's chief re-exports destinations for products as well as services are depicted in this map below.

Research Methodology

The system of collecting data for research projects in known as research methodology. This research methodology defines what the activity of research is, how to proceed, how to measure progress and what constitutes success. The researcher collects the data for either theoretical or practical research by strategically conceptualized along with operational planning methods and change management. Some important factors in research methodology includes validity of research data, Ethics and the reliability of measures most of your work is finished by the time you finish the analysis of your data.

Research design

Research design is the based framework, which provides guidelines for the research process. It is a map or blue print according to which the research is to be conducts. The research design specifies the methods for data collection & data analysis determine the source of data. Most specifically it was a kind of "Exploratory research" design.

Descriptive Research Design

Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. Although this research is highly accurate, it does not gather the causes behind a situation. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic.

Data Sources

A data source specifies the data source type, the connection string, and credentials. Data is available in various forms. There are two main sources of data being primary and secondary.

Primary data is the data that the researcher is collecting themselves using methods such as surveys, direct observations, interviews, as well as logs (objective data sources). Primary data is a reliable way to collect data because the researcher will know where it came from and how it was collected and analyzed since they did it themselves. Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research.

For this study the researcher has used secondary sources of data.

Secondary data collection:-


Published sources of data

On hand company data

Limitations of the study

No total access to financial data of the Al Gurg Fosroc company

The study is more descriptive and includes conceptual understanding of the process of export documents and procedures.

Primary data could not be used as against the policy of the company.

Statistical Tools

Al Gurg Fosroc - Swot Analysis

Al Gurg Fosrc analysis is a useful method which summarises all the information generated during the export planning. SWOT which stands for strengths, weakness, opportunities and threats, helps to isolate the strong and weak areas within an export strategy. It also indicates the future opportunities or threats that may exist in the chosen markets and is instrumental in strategy formulation and selection.


Business strengths are its resources and capabilities that can be used as a basis for developing a competitive-advantage.

Extensive portfolio of reliable and quality products

Best expertise and technology in the business

Good reputation among customers and distributers

Ability to manufacture products according to customer specifics

Cost advantages from proprietary know-how

Favorable access to distribution networks in most locations around the Globe


Al Gurg Fosroc management focuses on and every aspect of their customers problems and considers this to be their weakness and endeavors to apply their business acumen to rectify the same.

High set up expenses

Lack of access to key distribution channels in African territories and territories banned due to US sanctions where business opportunities abound.

Production capacity of the manufacturing plant.

Non-structured export process.


Arrival of new technologies.

Loosening of regulations.

Removal of international trade barriers.


Shifts in consumer tastes away from the firm's products

Emergence of substitute products.

New regulations.

Competitive prices by operating suppliers.

Staff joining competitors.

Fish Bone Analysis. (Cause and Effect Analysis)

The below is the result of the fist bone analysis done on Al Gurg Fosroc.

Production Department.

Production capacity of the plant (Resin, Old powder plant and New Powder plant.

Waste occurred in the production process.

Plant Break down causing delay in the production schedule.

Limited batches produced for a particular item.

Produced items not sufficient for the export and local sales of the company.

Production lead time not fulfilled.

Raw material stock not check on a daily basis resulting in shortage of RM's during production of bulk orders received.

Stock for fast moving products are kept at a minimum.

Procurement Department.

Lead time provided for procurement of Raw materials and other bought in products sold under the name of Al Gurg Fosroc or other finished products supplied by other inter companies causes delay in production and late deliveries.

follow ups of all the imported items are not done with the supplier on a day to day basis.

RM orders are placed with the supplier last minute and bearing in mind the huge lead time (ie 8 weeks from India) delays the planned production cycle.

documentation required to clear the shipment from the port are not in order resulting in demurrage charges being paid by the company.

Export Department

Export documentation COO from Ministry and Chamber of Commerce legalized the day of loading.

Loading list used for the dispatch of materials prepared a day before loading creating confusion for the consolidating team.

Export manager not aware about the export procedures involved for the dispatch of materials and lack of qualified people.

No replacement available for staff when on leave, resulting in a single individual handling the export regions causing errors at work.

Work not delegated correctly.

Lack of material knowledge. (ie Size, pallet weight, no of pails on a pallet, load ability of a container, trailer, truck etc) resulting in incorrect information be transferred to the customer or the shipping lines.

Quality Control Department.

Approval from QC department for the manufactured products delayed most of the times.

Reviewing Customer Complaints no immediate action taken.

Substitute Raw materials.

Sales Department

Sales Orders received most of the time in the last 2 weeks of the month to achieve the forecast given by the sales team.

Planned forecast not provided for imported products for re export purpose whose lead time is approx 8 weeks form placement of order.

No Co-ordination between the sales team and the export team.

High forecast given by the sales team which most of the time is not achievable.

Customers are not conveyed with the Minimum order quantity for the orders placed for some of the slow moving or expensive products.

Production lead time not informed to the customer for bulk orders placed.

Distribution Department

The workers working in this department are contract workers and a few of them are unable to read the names of the products mentioned on the Delivery Note.

Monthly stock check is not conducted.

No qualified individuals for overlooking the transactions in the ERP system used by Al Gurg Fosroc to match the book and physical stock.