- Chapter
1 Starting Export Introduction
- Chapter
2 Basic Planning For Export
- Chapter
3 Identifying Products For Export
- Chapter
4 Market Selection
- Chapter
5 SWOT Analysis
- Chapter
6 Registration of Exporters
- Chapter
7 Export License
- Chapter
8 Myths About Exporting
- Chapter
9 Export Sales Leads
- Chapter
10 Exporting Product Samples
- Chapter
11 Export Pricing And Costing
- Chapter
12 Understanding Foreign Exchange Rates
- Chapter
13 Appointing A Sales Agents
- Chapter
14 Export Risks Management
- Chapter
15 Packaging And Labeling Of Goods
- Chapter
16 Inspection Certificates And Quality Control
- Chapter
17 Export Documents
- Chapter
18 Custom Procedure For Export
- Chapter
19 Invisible Export
- Chapter
20 Export To SAARC
- Chapter
21 Export To CIS
- Chapter
22 Organisations Supporting Exporters
Introduction
How to Start Export is a fair question that every first time exporter wants to ask. Export in itself is a very wide concept and lot of preparations is required by an exporter before starting an export business.
A key success factor in starting any export company is clear understanding and detail knowledge of products to be exported. In order to be a successful in exporting one must fully research its foreign market rather than try to tackle every market at once. The exporter should approach a market on a priority basis. Overseas design and product must be studies properly and considered carefully. Because there are specific laws dealing with International trade and foreign business, it is imperative that you familiarize yourself with state, federal, and international laws before starting your export business.
Price is also an important factor. So, before starting an export business an exporter must considered the price offered to the buyers. As the selling price depends on sourcing price, try to avoid unnecessary middlemen who only add cost but no value. It helps a lot on cutting the transaction cost and improving the quality of the final products.
However, before we go deep into "How to export ?” let us discuss what an export is and how the Government of Indian has defined it.
In very simple terms, export may be defined as the selling of goods to a foreign country. However, As per Section 2 (e) of the India Foreign Trade Act (1992), the term export may be defined as 'an act of taking out of India any goods by land, sea or air and with proper transaction of money”.
Exporting a product is a profitable method that helps to expand the business and reduces the dependence in the local market. It also provides new ideas, management practices, marketing techniques, and ways of competing, which is not possible in the domestic market. Even as an owner of a domestic market, an individual businessman should think about exporting. Research shows that, on average, exporting companies are more profitable than their non-exporting counterparts.
Why Need to Export
There are many good reasons for exporting:
The first and the primary reason for export is to earn foreign exchange. The foreign exchange not only brings profit for the exporter but also improves the economic condition of the country.
Secondly, companies that export their goods are believed to be more reliable than their counterpart domestic companies assuming that exporting company has survive the test in meeting international standards.
Thirdly, free exchange of ideas and cultural knowledge opens up immense business and trade opportunities for a company.
Fourthly, as one starts visiting customers to sell one’s goods, he has an opportunity to start exploring for newer customers, state-of-the-art machines and vendors in foreign lands.
Fifthly, by exporting goods, an exporter also becomes safe from offset lack of demand for seasonal products.
Lastly, international trade keeps an exporter more competitive and less vulnerable to the market as the exporter may have a business boom in one sector while simultaneously witnessing a bust in a different sector.
No doubt that in the age of globalization and liberalizations, Export has became of the most lucrative business in India. Government of India is also supporting exporters through various incentives and schemes to promote Indian export for meeting the much needed requirements for importing modern technology and adopting new technology from MNCs through Joint ventures
How to Start Export is a fair question that every first time exporter wants to ask. Export in itself is a very wide concept and lot of preparations is required by an exporter before starting an export business.
A key success factor in starting any export company is clear understanding and detail knowledge of products to be exported. In order to be a successful in exporting one must fully research its foreign market rather than try to tackle every market at once. The exporter should approach a market on a priority basis. Overseas design and product must be studies properly and considered carefully. Because there are specific laws dealing with International trade and foreign business, it is imperative that you familiarize yourself with state, federal, and international laws before starting your export business.
Price is also an important factor. So, before starting an export business an exporter must considered the price offered to the buyers. As the selling price depends on sourcing price, try to avoid unnecessary middlemen who only add cost but no value. It helps a lot on cutting the transaction cost and improving the quality of the final products.
However, before we go deep into "How to export ?” let us discuss what an export is and how the Government of Indian has defined it.
In very simple terms, export may be defined as the selling of goods to a foreign country. However, As per Section 2 (e) of the India Foreign Trade Act (1992), the term export may be defined as 'an act of taking out of India any goods by land, sea or air and with proper transaction of money”.
Exporting a product is a profitable method that helps to expand the business and reduces the dependence in the local market. It also provides new ideas, management practices, marketing techniques, and ways of competing, which is not possible in the domestic market. Even as an owner of a domestic market, an individual businessman should think about exporting. Research shows that, on average, exporting companies are more profitable than their non-exporting counterparts.
Why Need to Export
There are many good reasons for exporting:
The first and the primary reason for export is to earn foreign exchange. The foreign exchange not only brings profit for the exporter but also improves the economic condition of the country.
Secondly, companies that export their goods are believed to be more reliable than their counterpart domestic companies assuming that exporting company has survive the test in meeting international standards.
Thirdly, free exchange of ideas and cultural knowledge opens up immense business and trade opportunities for a company.
Fourthly, as one starts visiting customers to sell one’s goods, he has an opportunity to start exploring for newer customers, state-of-the-art machines and vendors in foreign lands.
Fifthly, by exporting goods, an exporter also becomes safe from offset lack of demand for seasonal products.
Lastly, international trade keeps an exporter more competitive and less vulnerable to the market as the exporter may have a business boom in one sector while simultaneously witnessing a bust in a different sector.
No doubt that in the age of globalization and liberalizations, Export has became of the most lucrative business in India. Government of India is also supporting exporters through various incentives and schemes to promote Indian export for meeting the much needed requirements for importing modern technology and adopting new technology from MNCs through Joint ventures
Basic Planning For Export.
Before
starting an export, an individual should evaluate his company’s “export
readiness”. Further planning for export should be done only, if the company’s
assets are good enough for export.
There are
several methods to evaluate the export potential of a company. The most common
method is to examine the success of a product in domestic market. It is
believed that if the products has survived in the domestic market, there is a
good chance that it will also be successful in international market, at least
those where similar needs and conditions exist.
One
should also evaluate the unique features of a product. If those features are
hard to duplicate abroad, then it is likely that you will be successful
overseas. A unique product may have little competition and demand for it might
be quite high.
Once a
businessman decides to sell his products, the next step is to developing a
proper export plan. While planning an export strategy, it is always better to
develop a simple, practical and flexible export plan for profitable and
sustainable export business. As the planners learn more about exporting and
your company's competitive position, the export plan will become more detailed
and complete.
The main
objective of a typical export plan is to:
- Identifies what you want to
achieve from exporting.
- Lists what activities you need
to undertake to achieve those objectives.
- Includes mechanisms for
reviewing and measuring progress.
- Helps you remain focused on
your goals.
For a
proper export planning following questions need to answered:
1.
Which
products are selected for export development?
2.
What
modifications, if any, must be made to adapt them for overseas markets?
3.
Which
countries are targeted for sales development?
4.
In each
country, what is the basic customer profile?
5.
What
marketing and distribution channels should be used to reach customers?
6.
What special
challenges pertain to each market (competition, cultural differences, import
controls, etc.), and what strategy will be used to address them?
7.
How will the
product's export sale price be determined?
8.
What
specific operational steps must be taken and when?
9.
What will be
the time frame for implementing each element of the plan?
10.
What
personnel and company resources will be dedicated to exporting?
11.
What will be
the cost in time and money for each element?
12.
How will
results be evaluated and used to modify the plan?
From the
start, the plan should be viewed and written as a management tool, not as a
static document. Objectives in the plan should be compared with actual results
to measure the success of different strategies. The company should not hesitate
to modify the plan and make it more specific as new information and experience
are gained.
DO ensure your key staff members are
‘signed on’ to the Plan.
DO seek good advice – and test your Export Plan with advisers.
DON’T create a bulky document that remains static.
DO review the Export Plan regularly with your staff and advisers.
DO assign responsibility to staff for individual tasks.
DON’T use unrealistic timelines. Review them regularly – they often slip.
DO create scenarios for changed circumstances – look at the “what ifs” for changes in the market environment from minor to major shifts in settings. e.g. changes of government, new import taxes.
DO develop an integrated timeline that draws together the activities that make up the Export Plan.
DO make sure that you have the human and financial resources necessary to execute the Export Plan. Ensure existing customers are not neglected.
DO seek good advice – and test your Export Plan with advisers.
DON’T create a bulky document that remains static.
DO review the Export Plan regularly with your staff and advisers.
DO assign responsibility to staff for individual tasks.
DON’T use unrealistic timelines. Review them regularly – they often slip.
DO create scenarios for changed circumstances – look at the “what ifs” for changes in the market environment from minor to major shifts in settings. e.g. changes of government, new import taxes.
DO develop an integrated timeline that draws together the activities that make up the Export Plan.
DO make sure that you have the human and financial resources necessary to execute the Export Plan. Ensure existing customers are not neglected.
Identifying Export Product.
A key factor
in any export business is clear understanding and detail knowledge of products
to be exported. The selected product must be in demand in the countries where
it is to be exported. Before making any selection, one should also consider the
various government policies associated with the export of a particular product.
Whether companies are exporting first time or have been in export trade for a long time - it is better for both the groups to be methodical and systematic in identifying a right product. It’s not sufficient to have all necessary data 'in your mind' - but equally important to put everything on paper and in a structured manner. Once this job is done, it becomes easier to find the gaps in the collected information and take necessary corrective actions.
There are products that sell more often than other product in international market. It is not very difficult to find them from various market research tools. However, such products will invariably have more sellers and consequently more competition and fewer margins. On the other hand - a niche product may have less competition and higher margin - but there will be far less buyers.
Fact of the matter is - all products sell, though in varying degrees and there are positive as well as flip sides in whatever decision you take - popular or niche product.
Whether companies are exporting first time or have been in export trade for a long time - it is better for both the groups to be methodical and systematic in identifying a right product. It’s not sufficient to have all necessary data 'in your mind' - but equally important to put everything on paper and in a structured manner. Once this job is done, it becomes easier to find the gaps in the collected information and take necessary corrective actions.
There are products that sell more often than other product in international market. It is not very difficult to find them from various market research tools. However, such products will invariably have more sellers and consequently more competition and fewer margins. On the other hand - a niche product may have less competition and higher margin - but there will be far less buyers.
Fact of the matter is - all products sell, though in varying degrees and there are positive as well as flip sides in whatever decision you take - popular or niche product.
• The
product should be manufactured or sourced with consistent standard quality,
comparable to your competitors. ISO or equivalent certification helps in
selling the product in the international market.
• If possible,
avoid products which are monopoly of one or few suppliers. If you are the
manufacturer - make sure sufficient capacity is available in-house or you have
the wherewithal to outsource it at short notice. Timely supply is a key success
factor in export business
• The price of the exported product should not fluctuate very often - threatening profitability to the export business.
• The price of the exported product should not fluctuate very often - threatening profitability to the export business.
• Strictly
check the government policies related to the export of a particular product.
Though there are very few restrictions in export - it is better to check
regulatory status of your selected product.
• Carefully
study the various government incentive schemes and tax exemption like duty
drawback and DEPB.
• Import
regulation in overseas markets, specially tariff and non-tariff barriers.
Though a major non-tariff barrier (textile quota) has been abolished - there
are still other tariff and non-tariff barriers. If your product attracts higher
duty in target country - demand obviously falls.
•
Registration/Special provision for your products in importing country. This is
specially applicable for processed food and beverages, drugs and chemicals.
• Seasonal
vagaries of selected products as some products sell in summer, while others in
winter. Festive season is also important factor, for example certain products
are more sellable only during Christmas.
• Keep in
mind special packaging and labeling requirements of perishable products like
processed food and dairy products.
• Special
measures are required for transportation of certain products, which may be
bulky or fragile or hazardous or perishable.
Market Selection.
- Introduction
- Foreign
Market Research
- Foreign
Market Selection Process
- Foreign
Market Selection Entry
Introduction
After evaluation of company’s key capabilities, strengths and weaknesses, the next step is to start evaluating opportunities in promising export markets. It involves the screening of large lists of countries in order to arrive at a short list of four to five. The shorting method should be done on the basis of various political, economic and cultural factors that will potentially affect export operations in chosen market.
Some factors
to consider include:
1.
Geographical Factors
o
Country,
state, region,
o
Time zones,
o
Urban/rural
location logistical considerations e.g. freight and distribution channels
2.
Economic, Political, and Legal Environmental Factors
o
Regulations
including quarantine,
o
Labelling
standards,
o
Standards
and consumer protection rules,
o
Duties and
taxes
3.
Demographic Factors
o
Age and
gender,
o
Income and
family structure,
o
Occupation,
o
Cultural
beliefs,
o
Major
competitors,
o
Similar
products,
o
Key brands.
4.
Market Characteristics
o
Market size,
o
Availability
of domestic manufacturers,
o
Agents,
distributors and suppliers.
Understanding
a market’s key characteristics requires gathering a broad range of primary and
secondary research, much of which you can source without cost from the
internet.
Primary research, such as population figures, product compliance standards, statistics and other facts can be obtained without any cost from international organizations like United Nations (UN) and World Trade Organizations (WTO). Analysis of export statistics over a period of several years helps an individual to determine whether the market for a particular product is growing or shrinking.
Secondary research, such as periodicals, studies, market reports and surveys, can be found through government websites, international organisations, and commercial market intelligence firms.
Primary research, such as population figures, product compliance standards, statistics and other facts can be obtained without any cost from international organizations like United Nations (UN) and World Trade Organizations (WTO). Analysis of export statistics over a period of several years helps an individual to determine whether the market for a particular product is growing or shrinking.
Secondary research, such as periodicals, studies, market reports and surveys, can be found through government websites, international organisations, and commercial market intelligence firms.
Step 1: Gather Information on a Broad Range
of Markets
Market selection process requires a broad range of informations depending upon the products or services to be exported, which includes:
Market selection process requires a broad range of informations depending upon the products or services to be exported, which includes:
- The demand for product/service.
- The size of the potential
audience.
- Whether the target audience can
affords product.
- What the regulatory issues are
that impact on exports of product.
- Ease of access to this market –
proximity/freight.
- Are there appropriate
distribution channels for product/service.
- The environment for doing
business – language, culture, politics etc.
- Is it financially viable to
export to selected market.
You can
gather much of the first step information yourself from a variety of sources at
little or no cost. Sources of information include:
- Talking to colleagues and other
exporters.
- Trade and Enterprise – web
site, publications, call centre.
- The library.
- The Internet.
Step 2: Research a Selection of Markets
In-Depth
From the
results of the first stage, narrow your selection down to three to five markets
and undertake some in-depth research relating specifically to your product.
While doing so, some of the questions that may arise at this stage are:
- What similar products are in
the marketplace (including products that may not be similar but are used
to achieve the same goal, e.g. the product in our sample matrix at the end
of this document is a hair removal cream. As well as undertaking competitor
research on other hair removal creams, we would also need to consider
other products that are used for hair removal, i.e. razors, electrolysis,
wax).
- What is your point of
difference? What makes your product unique? What are the key selling points
for your product?
- How do people obtain/use these
products?
- Who provides them?
- Are they imported? If so from
which countries?
- Is there a local manufacturer
or provider?
- Who would your major
competitors be? What are the key brands or trade names?
- What is the market’s structure
and shape?
- What is the market’s size?
- Are there any niche markets,
and if so how big are they?
- Who are the major importers/
stockists / distributors / agencies or suppliers?
- What are the other ways to
obtain sales/representation?
- What are the prices or fees in
different parts of the market?
- What are the mark-ups at
different distribution levels?
- What are the import
regulations, duties or taxes, including compliance and professional
registrations if these apply?
- How will you promote your
product or service if there is a lot of competition?
- Are there any significant trade
fairs, professional gathers or other events where you can promote your
product or service?
- Packaging – do you need to
change metric measures to imperial, do you need to list ingredients?
- Will you need to translate
promotional material and packaging?
- Is your branding – colours,
imagery etc., culturally acceptable?
Having completed
the market selection process and chosen your target market, the next step is to
plan your entry strategy.
There are a number of options for entering your chosen market. Most exporters initially choose to work through agents or distributors. In the longer term, however, you may consider other options, such as taking more direct control of your market, more direct selling or promotion, or seeking alliances or agreements.
There are a number of options for entering your chosen market. Most exporters initially choose to work through agents or distributors. In the longer term, however, you may consider other options, such as taking more direct control of your market, more direct selling or promotion, or seeking alliances or agreements.
SWOT Analysis.
Introduction
SWOT analysis is a useful method of summaries all the information generated during the export planning. SWOT stands for strengths, weakness, opportunities and threats, which helps to isolate the strong and week areas within an export strategy. SWOT also indicates the future opportunities or threats that may exist in the chosen markets and is instrumental in strategy formulation and selection.
SWOT analysis is a useful method of summaries all the information generated during the export planning. SWOT stands for strengths, weakness, opportunities and threats, which helps to isolate the strong and week areas within an export strategy. SWOT also indicates the future opportunities or threats that may exist in the chosen markets and is instrumental in strategy formulation and selection.
To
apply your own SWOT analysis, start by creating a heading for each category –
‘Strengths’, ‘Weaknesses’, ‘Opportunities’, and ‘Threats’. Under each of these,
write a list of five relevant aspects of your business and external market
environment. Strengths and weaknesses apply to internal aspects of your
business; opportunities and threats relate to external research.
Your final
analysis should help you develop short and long term business goals and action
plans, and help guide your market selection process.
Environmental factors internal to
the company can be classified as strengths or weaknesses, and those external to
the company can be classified as opportunities or threats.
Business
strengths are its resources and capabilities that can be used as a basis for
developing a competitive-advantage. Examples of such strengths include:
- Patents
- Strong brand names.
- Good reputation among
customers.
- Cost advantages from
proprietary know-how.
- Exclusive access to high grade
natural resources.
- Favorable access to
distribution networks.
The absence
of certain strengths may be viewed as a weakness. For example, each of the
following may be considered weaknesses:
- Lack of patent protection.
- A weak brand name.
- Poor reputation among
customers.
- High cost structure.
- Lack of access to the best
natural resources.
- Lack of access to key
distribution channels.
The external
environmental analysis may reveal certain new opportunities for profit and
growth. Some examples of such opportunities include:
- An unfulfilled customer need.
- Arrival of new technologies.
- Loosening of regulations.
- Removal of international trade
barriers.
Changes in
the external environmental also may present threats to the firm. Some examples
of such threats include:
- Shifts in consumer tastes away
from the firm's products
- Emergence of substitute
products.
- New regulations.
- Increased trade barriers
Successful SWOT Analysis
Simple rules for successful SWOT analysis:
Simple rules for successful SWOT analysis:
- Be realistic about the
strengths and weaknesses of the organization.
- Analysis should distinguish
between where the organization is today, and where it could be in the
future.
- Be specific.
- Always analyse in relation to
your competition i.e. better than or worse than your competition.
- Keep your SWOT short and
simple.
A SWOT
analysis can be very subjective, and is an excellent tool for indicating the
negative factors first in order to turn them into positive factors.
Registration of Exporters.
- Registration
with Reserve Bank of India (RBI)
- Registration
with Director General of Foreign Trade (DGFT)
- Registration
with Export Promotion Council
- Registration
with Commodity Boards
- Registration
with Income Tax Authorities
Once all the research and analysis is done its
time to get registered with the various government authorities.
Prior to
1997, it was necessary for every first time exporter to obtain IEC number from
Reserve Bank of India (RBI) before engaging in any kind of export operations.
But now this job is being done by DGFT.
Registration with Director General
of Foreign Trade (DGFT)
For every first time exporter, it is necessary to get registered with the DGFT (Director General of Foreign Trade), Ministry of Commerce, Government of India.
DGFT provide exporter a unique IEC Number. IEC Number is a ten digits code required for the purpose of export as well as import. No exporter is allowed to export his good abroad without IEC number.
However, if the goods are exported to Nepal, or to Myanmar through Indo-Myanmar boarder or to China through Gunji, Namgaya, Shipkila or Nathula ports then it is not necessary to obtain IEC number provided the CIF value of a single consignment does not exceed Indian amount of Rs. 25, 000 /-.
Application for IEC number can be submitted to the nearest regional authority of DGFT.
Application form which is known as "Aayaat Niryaat Form - ANF2A" can also be submitted online at the DGFT web-site: http://dgft.gov.in.
While submitting an application form for IEC number, an applicant is required to submit his PAN account number. Only one IEC is issued against a single PAN number. Apart from PAN number, an applicant is also required to submit his Current Bank Account number and Bankers Certificate.
A amount of Rs 1000/- is required to submit with the application fee. This amount can be submitted in the form of a Demand Draft or payment through EFT (Electronic Fund Transfer by Nominated Bank by DGFT.
Registration with Export Promotion Council
Registered under the Indian Company Act, Export Promotion Councils or EPC is a non-profit organisation for the promotion of various goods exported from India in international market. EPC works in close association with the Ministry of Commerce and Industry, Government of India and act as a platform for interaction between the exporting community and the government.
So, it becomes important for an exporter to obtain a registration cum membership certificate (RCMC) from the EPC. An application for registration should be accompanied by a self certified copy of the IEC number. Membership fee should be paid in the form of cheque or draft after ascertaining the amount from the concerned EPC.
The RCMC certificate is valid from 1st April of the licensing year in which it was issued and shall be valid for five years ending 31st March of the licensing year, unless otherwise specified.
For every first time exporter, it is necessary to get registered with the DGFT (Director General of Foreign Trade), Ministry of Commerce, Government of India.
DGFT provide exporter a unique IEC Number. IEC Number is a ten digits code required for the purpose of export as well as import. No exporter is allowed to export his good abroad without IEC number.
However, if the goods are exported to Nepal, or to Myanmar through Indo-Myanmar boarder or to China through Gunji, Namgaya, Shipkila or Nathula ports then it is not necessary to obtain IEC number provided the CIF value of a single consignment does not exceed Indian amount of Rs. 25, 000 /-.
Application for IEC number can be submitted to the nearest regional authority of DGFT.
Application form which is known as "Aayaat Niryaat Form - ANF2A" can also be submitted online at the DGFT web-site: http://dgft.gov.in.
While submitting an application form for IEC number, an applicant is required to submit his PAN account number. Only one IEC is issued against a single PAN number. Apart from PAN number, an applicant is also required to submit his Current Bank Account number and Bankers Certificate.
A amount of Rs 1000/- is required to submit with the application fee. This amount can be submitted in the form of a Demand Draft or payment through EFT (Electronic Fund Transfer by Nominated Bank by DGFT.
Registration with Export Promotion Council
Registered under the Indian Company Act, Export Promotion Councils or EPC is a non-profit organisation for the promotion of various goods exported from India in international market. EPC works in close association with the Ministry of Commerce and Industry, Government of India and act as a platform for interaction between the exporting community and the government.
So, it becomes important for an exporter to obtain a registration cum membership certificate (RCMC) from the EPC. An application for registration should be accompanied by a self certified copy of the IEC number. Membership fee should be paid in the form of cheque or draft after ascertaining the amount from the concerned EPC.
The RCMC certificate is valid from 1st April of the licensing year in which it was issued and shall be valid for five years ending 31st March of the licensing year, unless otherwise specified.
Registration with Commodity Boards
Commodity Board is registered agency designated by the Ministry of Commerce, Government of India for purposes of export-promotion and has offices in India and abroad. At present, there are five statutory Commodity Boards under the Department of Commerce. These Boards are responsible for production, development and export of tea, coffee, rubber, spices and tobacco.
Commodity Board is registered agency designated by the Ministry of Commerce, Government of India for purposes of export-promotion and has offices in India and abroad. At present, there are five statutory Commodity Boards under the Department of Commerce. These Boards are responsible for production, development and export of tea, coffee, rubber, spices and tobacco.
Registration with Income Tax
Authorities
Goods exported out of the country are eligible for exemption from both Value Added Tax and Central Sales Tax. So, to get the benefit of tax exemption it is important for an exporter to get registered with the Tax Authorities.
Goods exported out of the country are eligible for exemption from both Value Added Tax and Central Sales Tax. So, to get the benefit of tax exemption it is important for an exporter to get registered with the Tax Authorities.
Export License.
Introduction
An export
license is a document issued by the appropriate licensing agency after which an
exporter is allowed to transport his product in a foreign market. The license
is only issued after a careful review of the facts surrounding the given export
transaction. Export license depends on the nature of goods to be transported as
well as the destination port. So, being an exporter it is necessary to
determine whether the product or good to be exported requires an export license
or not. While making the determination one must consider the following
necessary points:
- What are you
exporting?
- Where are you
exporting?
- Who will
receive your item?
- What will your
items will be used?
Canalisation
is an important feature of Export License under which certain goods can be
imported only by designated agencies. For an example, an item like gold, in
bulk, can be imported only by specified banks like SBI and some foreign banks or
designated agencies.
To
determine whether a license is needed to export a particular commercial product
or service, an exporter must first classify the item by identifying what is
called ITC (HS)
Classifications. Export license are only issued for the goods mentioned in the
Schedule 2 of ITC (HS) Classifications of Export and Import items. A proper
application can be submitted to the Director General of Foreign Trade (DGFT).
The Export Licensing Committee under the Chairmanship of Export Commissioner
considers such applications on merits for issue of export licenses.
The Director
General of Foreign Trade (DGFT) from time to time specifies through a public
notice according to which any goods, not included in the ITC (HS)
Classifications of Export and Import items may be exported without a license.
Such terms and conditions may include Minimum Export Price (MEP), registration
with specified authorities, quantitative ceilings and compliance with other
laws, rules, regulations.
Myths About Exporting Products.
- Introduction
- 1.
Myth: I Am Too Small to Export
- 2.
Myth: I Cannot Afford to Export
- 3.
Myth: I Cannot Compete With Large Overseas Companies
- 4.
Myth: Exporting is Too Risky
- 5.
Myth: Exporting is Too Complicated
Introduction
Many first
time exporters or firm managers believe the myths about exporting that
it’s too difficult or too costly to sell their product in a foreign country.
But given below the some of the important facts that will help a first time
exporter to clear all his misconceptions.
Only large
firms with name recognition, abundant resources, and formal export departments
can export successfully.
It is true
that large firms typically account for far more total exports but the real fact
is that vast majority of exporting firms in most countries are small and
medium-sized enterprises (SMEs).
I don't have
the money for hiring new employees, for marketing abroad, or expanding
production for new business.
There are
various low-cost ways to market and promote abroad, handle new export orders,
and finance receivables. This does not require hiring new staff or setting up
an export department. At little or no cost for example, you can receive product
and country market research, worldwide market exposure, generate trade leads,
and find qualified overseas distributors through various Commodity Boards and
Export Promotion Councils.
My products
are unknown and my prices are too high for foreign markets.
If the product is known in the domestic market then it’s a plus point but even an unknown product can be exported in a foreign market. Low demand of a product doesn’t indicates that it will be also not accepted in the international market.
Price is also an important, but it is not the only selling point. Other competitive factors play a large role including quality, service, and consumer taste - these may override price. Also prices of a product may not be relatively high in countries with a strong currency, as in the European Union.
If the product is known in the domestic market then it’s a plus point but even an unknown product can be exported in a foreign market. Low demand of a product doesn’t indicates that it will be also not accepted in the international market.
Price is also an important, but it is not the only selling point. Other competitive factors play a large role including quality, service, and consumer taste - these may override price. Also prices of a product may not be relatively high in countries with a strong currency, as in the European Union.
I might not
get paid.
Selling
anywhere has risks even in the domestic market, but it can be reduced with
reasonable precautions. To assure you get paid, use Letters of Credit (L/Cs). A
L/C is a letter from a bank guaranteeing that a buyer's payment to a seller
will be received on time and for the correct amount. In the event that the
buyer is unable to make payment on the purchase, the bank will be required to
cover the full or remaining amount of the purchase. Proper documentation can
minimize the risk associated with the export business.
Exporting is
too complicated; I won’t understand the laws and documentation requirements.
You don't
need to be an expert to export. There is an abundance of resources available
online that helps the first time exporter about all ins and outs of the export
operations. Government of India and its associated agencies like Commodity
Boards and Export Promotion Councils also provide guidelines to the exporters.
Export Sales Leads.
- Introduction
- Generating
Sales Leads
- Qualifying
sales leads
- Sending
Acknowledgement
- Responding
with quality products
- Follow
Ups
Introduction
Export Sales leads are initial contacts a seller or exporter seeks in order to finalize a deal or agreement for export of goods and are considered as the first step in the entire sales process. After getting the first lead, a company should respond to that lead in a very carefully manner in order to convert that opportunity into real export deal.
Export Sales leads are initial contacts a seller or exporter seeks in order to finalize a deal or agreement for export of goods and are considered as the first step in the entire sales process. After getting the first lead, a company should respond to that lead in a very carefully manner in order to convert that opportunity into real export deal.
Sales leads
can be generated either through a word-of-mouth or internet research or trade
show participation.
As the buyer
is far away and sometimes communication process can be difficult, so it’s
always better to make an extra effort to understand the exact need of the
customer.
After
receiving a lead it is quite important to acknowledge the enquirer within 48
hours of receiving the enquiry either through e-mail or fax. Acknowledgement
also gives an option to provide further detail about the product or to make an enquiry
about the buyer.
Quality
products strengthen buyer seller relationship, so it’s always better to provide
quality products to the buyers.
Always try
to be in touch with the buyer or customer. For this purpose one can ask a phone
number and a convenient time to call. It is always better to make the call in
the presence of an Export Adviser. One should avoid high pressure call during
follow up.
Exporting Product Samples.
- Introduction
- Sending
Export Samples from India
- Export
Samples against Payment
- Export
of Garment Samples
- Export
of Software
Introduction
The foreign customer may ask for product samples before placing a confirmed order. So, it is essential that the samples are made from good quality raw materials and after getting an order, the subsequent goods are made with the same quality product.
Extra care should be taken in order to avoid the risk associated in sending a costly product sample for export. Secrecy is also an important factor while sending a sample, especially if there is a risk of copying the original product during export.
Before exporting a product sample an exporter should also know the Government policy and procedures for export of samples.
While sending a product sample to an importer, it is always advised to send samples by air mail to avoid undue delay. However, if the time is not an issue then the product sample can also be exported through proper postal channel, which is cheaper as compared to the air mail.
Sending Export Samples from India
Samples having permanent marking as “sample not for sale” are allowed freely for export without any limit. However, in such cases where indelible marking is not available, the samples may be allowed for a value not exceeding US $ 10,000, per consignment.
For export of sample products which are restricted for export as mentioned in the ITC (HS) Code, an application may be made to the office of Director General of Foreign Trade (DGFT).
Export of samples to be sent by post parcel or air freight is further divided into following 3 categories, and under each category an exporter is required to fulfill certain formalities which are mentioned below :
Samples having permanent marking as “sample not for sale” are allowed freely for export without any limit. However, in such cases where indelible marking is not available, the samples may be allowed for a value not exceeding US $ 10,000, per consignment.
For export of sample products which are restricted for export as mentioned in the ITC (HS) Code, an application may be made to the office of Director General of Foreign Trade (DGFT).
Export of samples to be sent by post parcel or air freight is further divided into following 3 categories, and under each category an exporter is required to fulfill certain formalities which are mentioned below :
1.
Samples of
value up to Rs.10, 000- It is necessary for the exporter to file a simple
declaration that the sample does not involve foreign exchange and its value is
less than Rs. 10,000.
2.
Samples of
value less than Rs. 25,000- It is necessary for the exporter to obtain a value
certificate from the authorised dealer in foreign exchange (i.e. your bank).
For this purpose, an exporter should submit a commercial invoice certifying
thereon that the parcel does not involve foreign exchange and the aggregate
value of the samples exported by you does not exceed Rs. 25,000 in the current
calendar year.
3.
Samples of
value more than Rs. 25,000- It becomes necessary for the exporter to obtain
GR/PP waiver from the Reserve Bank of India
Export Samples against Payment
A sample against which an overseas buyer agrees to make payment is exported in the same manner as the normal goods are exported. Sample can also be carried personally by you while travelling abroad provided these are otherwise permissible or cleared for export as explained earlier. However, in case of precious jewellery or stone the necessary information should be declared to the custom authorities while leaving the country and obtain necessary endorsement on export certificate issued by the Jewelry Appraiser of the Customs.
A sample against which an overseas buyer agrees to make payment is exported in the same manner as the normal goods are exported. Sample can also be carried personally by you while travelling abroad provided these are otherwise permissible or cleared for export as explained earlier. However, in case of precious jewellery or stone the necessary information should be declared to the custom authorities while leaving the country and obtain necessary endorsement on export certificate issued by the Jewelry Appraiser of the Customs.
Export of Garment Samples
As per the special provision made for the export of garment samples, only those exporters are allowed to send samples that are registered with the Apparel export Promotion Council (AEPC). Similarly, for export of wool it is necessary for the exporter to have registration with the Woolen Export Promotion Council.
As per the special provision made for the export of garment samples, only those exporters are allowed to send samples that are registered with the Apparel export Promotion Council (AEPC). Similarly, for export of wool it is necessary for the exporter to have registration with the Woolen Export Promotion Council.
Export of Software
All kinds electronic and computer software product samples can only be exported abroad, if the exporter dealing with these products is registered with the Electronics and Computer Software Export Promotion Council (ESC)
Similarly samples of other export products can be exported abroad under the membership of various Export Promotion Councils (EPC) of India.
All kinds electronic and computer software product samples can only be exported abroad, if the exporter dealing with these products is registered with the Electronics and Computer Software Export Promotion Council (ESC)
Similarly samples of other export products can be exported abroad under the membership of various Export Promotion Councils (EPC) of India.
Export Pricing And Costing.
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Introduction
Pricing and
costing are two different things and an exporter should not confuse between the
two. Price is what an exporter offer to a customer on particular products while
cost is what an exporter pay for manufacturing the same product.
Export
pricing is the most important factor in for promoting export and facing
international trade competition. It is important for the exporter to keep the
prices down keeping in mind all export benefits and expenses. However, there is
no fixed formula for successful export pricing and is differ from exporter to
exporter depending upon whether the exporter is a merchant exporter or a
manufacturer exporter or exporting through a canalising agency.
- Range of products offered.
- Prompt deliveries and
continuity in supply.
- After-sales service in products
like machine tools, consumer durables.
- Product differentiation and
brand image.
- Frequency of purchase.
- Presumed relationship between
quality and price.
- Specialty value goods and gift
items.
- Credit offered.
- Preference or prejudice for
products originating from a particular source.
- Aggressive marketing and sales
promotion.
- Prompt acceptance and
settlement of claims.
- Unique value goods and gift
items.
Export Costing
Export Costing is basically Cost Accountant's job. It consists of fixed cost and variable cost comprising various elements. It is advisable to prepare an export costing sheet for every export product.
Export Costing is basically Cost Accountant's job. It consists of fixed cost and variable cost comprising various elements. It is advisable to prepare an export costing sheet for every export product.
As regards
quoting the prices to the overseas buyer, the same are quoted in the following
internationally accepted terms which are commonly known as Incoterm.
Understanding of Foreign Exchange Rates.
- Introduction
- Spot
Exchange Rate
- Forward
Exchange Rate
- Method
of Quoting Exchange Rates
- Exchange
Rate Regime
- Forward
Exchange Contracts
- Benefits
of Forward Exchange Contract
- Foreign
Currency Options
- Flexible
Forwards
- Currency
Swap
- Foreign
Exchange Markets
Introduction
An exporter without any commercial contract is completely exposed of foreign exchange risks that arises due to the probability of an adverse change in exchange rates. Therefore, it becomes important for the exporter to gain some knowledge about the foreign exchange rates, quoting of exchange rates and various factors determining the exchange rates. In this section, we have discussed various topics related to foreign exchange rates in detail.
An exporter without any commercial contract is completely exposed of foreign exchange risks that arises due to the probability of an adverse change in exchange rates. Therefore, it becomes important for the exporter to gain some knowledge about the foreign exchange rates, quoting of exchange rates and various factors determining the exchange rates. In this section, we have discussed various topics related to foreign exchange rates in detail.
Spot Exchange Rate
Also known as "benchmark rates", "straightforward rates" or "outright rates", spot rates represent the price that a buyer expects to pay for a foreign currency in another currency. Settlement in case of spot rate is normally done within one or two working days.
Forward Exchange Rate
The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.
Also known as "benchmark rates", "straightforward rates" or "outright rates", spot rates represent the price that a buyer expects to pay for a foreign currency in another currency. Settlement in case of spot rate is normally done within one or two working days.
Forward Exchange Rate
The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.
Method of Quoting Exchange Rates
There are two methods of quoting exchange rates:
There are two methods of quoting exchange rates:
- Direct Quotation: In this system, variable
units of home currency equivalent to a fixed unit of foreign currency are
quoted.
For example: US $ 1= Rs. 42.75 - Indirect Quotation: In this system, variable
units of foreign currency as equivalent to a fixed unit of home currency
are quoted.
For example: US $ 2.392= Rs. 100
Before 1993,
banks were required to quote all the rates on indirect basis as foreign
currency equivalent to RS. 100 but after 1993 banks are quoting rates on direct
basis only.
Exchange Rate Regime
The exchange rate regime is a method through which a country manages its currency in respect to foreign currencies and the foreign exchange market.
The exchange rate regime is a method through which a country manages its currency in respect to foreign currencies and the foreign exchange market.
- Fixed Exchange Rate
A fixed exchange rate is a type of exchange rate regime in which a currency's value is matched to the value of another single currency or any another measure of value, such as gold. A fixed exchange rate is also known as pegged exchange rate. A currency that uses a fixed exchange rate is known as a fixed currency. The opposite of a fixed exchange rate is a floating exchange rate. - Floating Exchange Rate
A Floating Exchange Rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. A currency that uses a floating exchange rate is known as a floating currency. A Floating Exchange Rate or a flexible exchange rate and is opposite to the fixed exchange rate. - Linked Exchange Rate
A linked exchange rate system is used to equlise the exchange rate of a currency to another. Linked Exchange Rate system is implemented in Hong Kong to stabilise the exchange rate between the Hong Kong dollar (HKD) and the United States dollar (USD).
Forward Exchange Contracts
A Forward Exchange Contract is a contract between two parties (the Bank and the customer). One party contract to sell and the other party contracts to buy, one currency for another, at an agreed future date, at a rate of exchange which is fixed at the time the contract is entered into.
A Forward Exchange Contract is a contract between two parties (the Bank and the customer). One party contract to sell and the other party contracts to buy, one currency for another, at an agreed future date, at a rate of exchange which is fixed at the time the contract is entered into.
- Contracts can be arranged to
either buy or sell a foreign currency against your domestic currency, or
against another foreign currency.
- Available in all major
currencies.
- Available for any purpose such
as trade, investment or other current commitments.
- Forward exchange contracts must
be completed by the customer. A customer requiring more flexibility may
wish to consider Foreign Currency Options.
Foreign Currency Options
Foreign Currency Options is a hedging tool that gives the owner the right to buy or sell the indicated amount of foreign currency at a specified price before a specific date. Like forward contracts, foreign currency options also eliminate the spot market risk for future transactions. A currency option is no different from a stock option except that the underlying asset is foreign exchange. The basic premises remain the same: the buyer of option has the right but no obligation to enter into a contract with the seller. Therefore the buyer of a currency option has the right, to his advantage, to enter into the specified contract.
Foreign Currency Options is a hedging tool that gives the owner the right to buy or sell the indicated amount of foreign currency at a specified price before a specific date. Like forward contracts, foreign currency options also eliminate the spot market risk for future transactions. A currency option is no different from a stock option except that the underlying asset is foreign exchange. The basic premises remain the same: the buyer of option has the right but no obligation to enter into a contract with the seller. Therefore the buyer of a currency option has the right, to his advantage, to enter into the specified contract.
Flexible Forwards
Flexible Forward is a part of foreign exchange that has been developed as an alternative to forward exchange contracts and currency options. The agreement for flexible forwards is always singed between two parties (the ‘buyer’ of the flexible forward and the 'seller' of the flexible forward) to exchange a specified amount (the ‘face value’) of one currency for another currency at a foreign exchange rate that is determined in accordance with the mechanisms set out in the agreement at an agreed time and an agreed date (the ‘expiry time’ on the ‘expiry date’). The exchange then takes place approximately two clear business days later on the ‘delivery date’).
Flexible Forward is a part of foreign exchange that has been developed as an alternative to forward exchange contracts and currency options. The agreement for flexible forwards is always singed between two parties (the ‘buyer’ of the flexible forward and the 'seller' of the flexible forward) to exchange a specified amount (the ‘face value’) of one currency for another currency at a foreign exchange rate that is determined in accordance with the mechanisms set out in the agreement at an agreed time and an agreed date (the ‘expiry time’ on the ‘expiry date’). The exchange then takes place approximately two clear business days later on the ‘delivery date’).
Currency Swap
A currency swap which is also known as cross currency swap is a foreign exchange agreement between two countries to exchange a given amount of one currency for another and, after a specified period of time, to give back the original amounts swapped.
A currency swap which is also known as cross currency swap is a foreign exchange agreement between two countries to exchange a given amount of one currency for another and, after a specified period of time, to give back the original amounts swapped.
Foreign Exchange Markets
The foreign exchange markets are usually highly liquid as the world's main international banks provide a market around-the-clock. The Bank for International Settlements reported that global foreign exchange market turnover daily averages in April was $650 billion in 1998 (at constant exchange rates) and increased to $1.9 trillion in 2004 [1]. Trade in global currency markets has soared over the past three years and is now worth more than $3.2 trillion a day. The biggest foreign exchange trading centre is London, followed by New York and Tokyo.
The foreign exchange markets are usually highly liquid as the world's main international banks provide a market around-the-clock. The Bank for International Settlements reported that global foreign exchange market turnover daily averages in April was $650 billion in 1998 (at constant exchange rates) and increased to $1.9 trillion in 2004 [1]. Trade in global currency markets has soared over the past three years and is now worth more than $3.2 trillion a day. The biggest foreign exchange trading centre is London, followed by New York and Tokyo.
Appointing a Sales Agent.
- Introduction
- Merits
of Appointing a Sales Agent
- Demerits
of Appointing a Sales Agent
- Important
Points While Appointing a Sales Agent
- Some
source of Information on Agents
- Agent
v Distributor
Introduction
Selling a product through an overseas agent is a very successful strategy. Sales agents are available on commission basis for any sales they make. The key benefit of using an overseas sales agent is that you get the advantage of their extensive knowledge of the target market. Sales agent also provides support to an exporter in the matter of transportation, reservation of accommodation, appointment with the government as and when required. It is, therefore, essential that one should very carefully select overseas agent.
Selling a product through an overseas agent is a very successful strategy. Sales agents are available on commission basis for any sales they make. The key benefit of using an overseas sales agent is that you get the advantage of their extensive knowledge of the target market. Sales agent also provides support to an exporter in the matter of transportation, reservation of accommodation, appointment with the government as and when required. It is, therefore, essential that one should very carefully select overseas agent.
Merits of Appointing a Sales Agent
There are various types of merits associated with appointed a sales agent for export purpose are as follow:
There are various types of merits associated with appointed a sales agent for export purpose are as follow:
- Sales agent avoids the
recruitment, training, time and payroll costs of using own employees to
enter an overseas market.
- An agent is a better option to
identify and exploit opportunities in overseas export market.
- An agent already have solid
relationships with potential buyers, hence it saves the time of the
exporter to build own contacts.
- An agent allows an exporter to
maintain more control over matters such as final price and brand image -
compared with the other intermediary option of using a distributor.
Demerits of Appointing a Sales Agent
There are also certain disadvantages associated with appointing a sales agent for export purpose which are as follows:
There are also certain disadvantages associated with appointing a sales agent for export purpose which are as follows:
- After-sales service can be
difficult when selling through an intermediary.
- There is a risk for exporter to
lose some control over marketing and brand image.
Important Points While Appointing a
Sales Agent:
Appointing right sales agent not only enhance the profit of an exporter but also avoid any of risks associated with a sales agent. So it becomes important for an exporter to take into consideration following important points before selection an appropriate sales agent for his product.
Appointing right sales agent not only enhance the profit of an exporter but also avoid any of risks associated with a sales agent. So it becomes important for an exporter to take into consideration following important points before selection an appropriate sales agent for his product.
- Size of the agent's company.
- Date of foundation of the
agent's company.
- Company's ownership and
control.
- Company's capital, funds,
available and liabilities.
- Name, age and experience of the
company's senior executives.
- Number, age and experience of
the company's salesman.
- Oher agencies that the company
holds, including those of competing products and turn-over of each.
- Length of company's association
with other principal.
- New agencies that the company
obtained or lost during the past year.
- Company's total annual sales
and the trends in its sales in recent years.
- Company's sales coverage,
overall and by area.
- Number of sales calls per month
and per salesman by company staff.
- Any major obstacles expected in
the company's sales growth.
- Agent's capability to provide
sales promotion and advertising services
- Agent's transport facilities
and warehousing capacity.
- Agent's rate of commission;
payment terms required.
- References on the agents from
banks, trade associations and major buyers.
- Government Departments Trade
Associations.
- Chambers of Commerce.
- Banks.
- Independent Consultants.
- Export Promotion Councils.
- Advertisement Abroad.
Agent v Distributor
There is a fundamental legal difference between agents and distributors and an exporter should not confuse between the two. An agent negotiates on the behalf of an exporter and may be entitled to create a legal relationship between exporter and the importer
A distributor buys goods on its own account from exporter and resells those products to customers. It is the distributor which has the sale contract with the customer not the exporter. In the case of distributor, an exporter is free from any kinds of risks associated with the finance.
There is a fundamental legal difference between agents and distributors and an exporter should not confuse between the two. An agent negotiates on the behalf of an exporter and may be entitled to create a legal relationship between exporter and the importer
A distributor buys goods on its own account from exporter and resells those products to customers. It is the distributor which has the sale contract with the customer not the exporter. In the case of distributor, an exporter is free from any kinds of risks associated with the finance.
Export Risk Management.
- Introduction
- Credit
Risk
- Poor
Quality Risk
- Transportation
Risks
- Logistic
Risk
- Legal
Risks
- Political
Risk
- Unforeseen
Risks
- Exchange
Rate Risks
- Export
Risk Management Plan
- Export
Risk Mitigation
Introduction
Export pricing is the most important factor in for promoting export and facing international trade competition. It is important for the exporter to keep the prices down keeping in mind all export benefits and expenses. However, there is no fixed formula for successful export pricing and is differ from exporter to exporter depending upon whether the exporter is a merchant exporter or a manufacturer exporter or exporting through a canalising agency.
Export pricing is the most important factor in for promoting export and facing international trade competition. It is important for the exporter to keep the prices down keeping in mind all export benefits and expenses. However, there is no fixed formula for successful export pricing and is differ from exporter to exporter depending upon whether the exporter is a merchant exporter or a manufacturer exporter or exporting through a canalising agency.
Like any
business transaction, risk is also associated with good to be exported in an
overseas market. Export is risk in international trade is quite different from
risks involve in domestic trade. So, it becomes important to all the risks
related to export in international trade with an extra measure and with a
proper risk management.
The various
types of export risks involve in an international trade are as follow:
Credit Risk
Sometimes because of large distance, it becomes difficult for an exporter to verify the creditworthiness and reputation of an importer or buyer. Any false buyer can increase the risk of non-payment, late payment or even straightforward fraud. So, it is necessary for an exporter to determine the creditworthiness of the foreign buyer. An exporter can seek the help of commercial firms that can provide assistance in credit-checking of foreign companies.
Sometimes because of large distance, it becomes difficult for an exporter to verify the creditworthiness and reputation of an importer or buyer. Any false buyer can increase the risk of non-payment, late payment or even straightforward fraud. So, it is necessary for an exporter to determine the creditworthiness of the foreign buyer. An exporter can seek the help of commercial firms that can provide assistance in credit-checking of foreign companies.
Poor Quality Risk
Exported goods can be rejected by an importer on the basis of poor quality. So it is always recommended to properly check the goods to be exported. Sometimes buyer or importer raises the quality issue just to put pressure on an exporter in order to try and negotiate a lower price. So, it is better to allow an inspection procedure by an independent inspection company before shipment. Such an inspection protects both the importer and the exporter. Inspection is normally done at the request of importer and the costs for the inspection are borne by the importer or it may be negotiated that they be included in the contract price.
Alternatively,
it may be a good idea to ship one or two samples of the goods being produced to
the importer by an international courier company. The final product produced to
the same standards is always difficult to reduce.
Transportation Risks
With the movement of goods from one continent to another, or even within the same continent, goods face many hazards. There is the risk of theft, damage and possibly the goods not even arriving at all.
Transportation Risks
With the movement of goods from one continent to another, or even within the same continent, goods face many hazards. There is the risk of theft, damage and possibly the goods not even arriving at all.
Logistic Risk
The exporter must understand all aspects of international logistics, in particular the contract of carriage. This contract is drawn up between a shipper and a carrier (transport operator). For this an exporter may refer to Incoterms 2000, ICC publication.
The exporter must understand all aspects of international logistics, in particular the contract of carriage. This contract is drawn up between a shipper and a carrier (transport operator). For this an exporter may refer to Incoterms 2000, ICC publication.
Legal Risks
International laws and regulations change frequently. Therefore, it is important for an exporter to drafts a contract in conjunction with a legal firm, thereby ensuring that the exporter's interests are taken care of.
Political Risk
Political risk arises due to the changes in the government policies or instability in the government sector. So it is important for an exporter to be constantly aware of the policies of foreign governments so that they can change their marketing tactics accordingly and take the necessary steps to prevent loss of business and investment.
Political risk arises due to the changes in the government policies or instability in the government sector. So it is important for an exporter to be constantly aware of the policies of foreign governments so that they can change their marketing tactics accordingly and take the necessary steps to prevent loss of business and investment.
Unforeseen Risks
Unforeseen risk such as terrorist attack or a natural disaster like an earthquake may cause damage to exported products. It is therefore important that an exporter ensures a force majeure clause in the export contract.
Exchange Rate Risks
Exchange rate risk is occurs due to the uncertainty in the future value of a currency. Exchange risk can be avoided by adopting Hedging scheme.
Exchange rate risk is occurs due to the uncertainty in the future value of a currency. Exchange risk can be avoided by adopting Hedging scheme.
Export Risk Management Plan
Risk management is a process of thinking analytically about all potential undesirable outcomes before they happen and setting up measures that will avoid them. There are six basic elements of the risk management process:
• Establishing the context
• Identifying the risks
• Assessing probability and possible consequences of risks
• Developing strategies to mitigate these risks
• Monitoring and reviewing the outcomes
• Communicating and consulting with the parties involved
A risk management plan helps an exporter to broaden the risk profile for foreign market. For a small export business, an exporter must keep his risk management analysis clear and simple.
Risk management is a process of thinking analytically about all potential undesirable outcomes before they happen and setting up measures that will avoid them. There are six basic elements of the risk management process:
• Establishing the context
• Identifying the risks
• Assessing probability and possible consequences of risks
• Developing strategies to mitigate these risks
• Monitoring and reviewing the outcomes
• Communicating and consulting with the parties involved
A risk management plan helps an exporter to broaden the risk profile for foreign market. For a small export business, an exporter must keep his risk management analysis clear and simple.
Export Risk Mitigation
Export risk mitigations are the various strategies that can be adopted by an exporter to avoid the risks associated with the export of goods.
Export risk mitigations are the various strategies that can be adopted by an exporter to avoid the risks associated with the export of goods.
- Direct Credit: Export Credit
Agencies support exports through the provision of direct credits to either
the importer or the exporter.
- Importer: a buyer credit is
provided to the importer to purchase goods.
- Exporter: makes a deferred
payment sale; insurance is used to protect the seller or bank.
- Guarantees
- Bid bond (tender guarantee):
protects against exporter’s unrealistic bid or failure to execute the
contract after winning the bid.
- Performance bond: guarantees
exporter’s performance after a contract is signed.
- Advance payment guarantee
(letter of indemnity): in the case where an importer advances funds,
guarantees a refund if exporter does not perform.
- Standby letter of credit:
issuing bank promises to pay exporter on behalf of importer.
- Insurance
- Transportation insurance:
Covers goods during transport; degree of coverage varies.
- Credit Insurance: Protects
against buyer insolvency or protracted defaults and/or political risks.
- Seller non-compliance (credit insurance):
Covers advance payment risk.
- Foreign exchange risk
insurance: Provides a hedge against foreign exchange risk.
- Hedging
Instruments used to Hedge Price Risk - Stabilization programs and
funds.
- Timing of purchase/sale.
- Fixed price long-term
contracts.
- Forward contracts.
- Swaps
Packing and Labeling of Goods.
Introduction
An important
stage after manufacturing of goods or their procurement is their preparation
for shipment which involves packaging and labelling of goods to be exported.
Proper packaging and labelling not only makes the final product look attractive
but also save a huge amount of money by saving the product from wrong handling
the export process.
Packaging
The primary role of packaging is to contain, protect and preserve a product as well as aid in its handling and final presentation. Packaging also refers to the process of design, evaluation, and production of packages. The packaging can be done within the export company or the job can be assigned to an outside packaging company. Packaging provides following benefits to the goods to be exported:
Packaging
The primary role of packaging is to contain, protect and preserve a product as well as aid in its handling and final presentation. Packaging also refers to the process of design, evaluation, and production of packages. The packaging can be done within the export company or the job can be assigned to an outside packaging company. Packaging provides following benefits to the goods to be exported:
- Physical Protection – Packaging provides
protection against shock, vibration, temperature, moisture and dust.
- Containment or agglomeration – Packaging provides
agglomeration of small objects into one package for reason of efficiency
and cost factor. For example it is better to put 1000 pencils in one box
rather than putting each pencil in separate 1000 boxes.
- Marketing: Proper and attractive
packaging play an important role in encouraging a potential buyer.
• Convenience - Packages can have features which add convenience in distribution, handling, display, sale, opening, use, and reuse. - Security - Packaging can play an
important role in reducing the security risks of shipment. It also
provides authentication seals to indicate that the package and contents
are not counterfeit. Packages also can include anti-theft devices, such as
dye-packs, RFID tags, or electronic article surveillance tags, that can be
activated or detected by devices at exit points and require specialized
tools to deactivate. Using packaging in this way is a means of loss
prevention.
Labeling
Like packaging, labeling should also be done with extra care. It is also important for an exporter to be familiar with all kinds of sign and symbols and should also maintain all the nationally and internationally standers while using these symbols. Labelling should be in English, and words indicating country of origin should be as large and as prominent as any other English wording on the package or label.
Like packaging, labeling should also be done with extra care. It is also important for an exporter to be familiar with all kinds of sign and symbols and should also maintain all the nationally and internationally standers while using these symbols. Labelling should be in English, and words indicating country of origin should be as large and as prominent as any other English wording on the package or label.
Labelling on
product provides the following important information:
- Shipper's mark
- Country of origin
- Weight marking (in pounds and
in kilograms)
- Number of packages and size of
cases (in inches and centimeters)
- Handling marks (international
pictorial symbols)
- Cautionary markings, such as
"This Side Up."
- Port of entry
- Labels for hazardous materials
Labelling of a product also provides information like how to
use, transport, recycle,
or dispose of the package or product. With pharmaceuticals,
food, medical,
and chemical
products, some types of information are required by governments.
It
is better to choose a fast dyes for labelling purpose. Only fast dyes should be used for labeling.
Essential data should be in black and subsidiary data in a less conspicuous
colour; red and orange and so on. For food packed in sacks, only harmless dyes
should be employed, and the dye should not come through the packing in such a
way as to affect the goods.
Inspection Certificates and Quality Control.
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- Introduction
- ISI
Certification
- AgMmark
Certification
- Benefits
of ISI and Agmark Certification
- In-Process
Quality Control (IPQC)
- Self
Certification Scheme
- ISO
9000
Introduction
An important aspect about the goods to be exported is compulsory quality control and pre-shipment inspection. For this purpose, Export Inspection Council (EIC) was set up by the Government of India under Section 3 of the Export (Quality Control and Inspection) Act, 1963. It includes more than 1000 commodities which are organized into various groups for a compulsory pre-shipment inspection. It includes Food and Agriculture, Fishery, Minerals, Organic and Inorganic Chemicals, Rubber Products, Refractoriness, Ceramic Products, Pesticides, Light Engineering, Steel Products, Jute Products, Coir and Coir Products, Footwear and Footwear Products.
An important aspect about the goods to be exported is compulsory quality control and pre-shipment inspection. For this purpose, Export Inspection Council (EIC) was set up by the Government of India under Section 3 of the Export (Quality Control and Inspection) Act, 1963. It includes more than 1000 commodities which are organized into various groups for a compulsory pre-shipment inspection. It includes Food and Agriculture, Fishery, Minerals, Organic and Inorganic Chemicals, Rubber Products, Refractoriness, Ceramic Products, Pesticides, Light Engineering, Steel Products, Jute Products, Coir and Coir Products, Footwear and Footwear Products.
An important
aspect about the goods to be exported is compulsory quality control and
pre-shipment inspection. For this purpose, Export Inspection Council (EIC) was
set up by the Government of India under Section 3 of the Export (Quality
Control and Inspection) Act, 1963. It includes more than 1000 commodities which
are organized into various groups for a compulsory pre-shipment inspection. It
includes Food and Agriculture, Fishery, Minerals, Organic and Inorganic
Chemicals, Rubber Products, Refractoriness, Ceramic Products, Pesticides, Light
Engineering, Steel Products, Jute Products, Coir and Coir Products, Footwear
and Footwear Products.
ISI Certification
Indian Standards Institute now known as Bureau of Indian Standard (BIS) is a registered society under a Government of India. BIS main functions include the development of technical standards, product quality and management system certifications and consumer affairs. Founded by Professor P.C. Mahalanobis in Kolkata on 17th December, 1931, the institute gained the status of an Institution of National Importance by an act of the Indian Parliament in 1959.
Indian Standards Institute now known as Bureau of Indian Standard (BIS) is a registered society under a Government of India. BIS main functions include the development of technical standards, product quality and management system certifications and consumer affairs. Founded by Professor P.C. Mahalanobis in Kolkata on 17th December, 1931, the institute gained the status of an Institution of National Importance by an act of the Indian Parliament in 1959.
AgMmark Certification
AgMark is an acronym for Agricultural Marketing and is used to certify the food products for quality control. Agmark has been dominated by other quality standards including the non manufacturing standard ISO 9000.
AgMark is an acronym for Agricultural Marketing and is used to certify the food products for quality control. Agmark has been dominated by other quality standards including the non manufacturing standard ISO 9000.
Benefits of ISI and Agmark
Certification
Products having ISI Certification mark or Agmark are not required to be inspected by any agency. These products do not fall within the purview of the export inspection agencies network. The Customs Authorities allow export of such goods even if not accompanied by any pre-shipment inspection certificate, provided they are otherwise satisfied that the goods carry ISI Certification or the Agmark.
Products having ISI Certification mark or Agmark are not required to be inspected by any agency. These products do not fall within the purview of the export inspection agencies network. The Customs Authorities allow export of such goods even if not accompanied by any pre-shipment inspection certificate, provided they are otherwise satisfied that the goods carry ISI Certification or the Agmark.
In-Process Quality Control (IPQC)
In-Process Quality Control (IPQC) inspection is mainly done for engineering products and is applied at the various stages of production. Units approved under IPQC system of in-process quality control may themselves issue the certificate of inspection, but only for the products for which they have been granted IPQC facilities. The final certificate of inspection on the end-products is then given without in-depth study at the shipment stage.
In-Process Quality Control (IPQC) inspection is mainly done for engineering products and is applied at the various stages of production. Units approved under IPQC system of in-process quality control may themselves issue the certificate of inspection, but only for the products for which they have been granted IPQC facilities. The final certificate of inspection on the end-products is then given without in-depth study at the shipment stage.
Self Certification Scheme
Under the self Certification Scheme, large exporters and manufacturers are allowed to inspect their product without involving any other party. The facility is available to manufacturers of engineering products, chemical and allied products and marine products. Self-Certification is given on the basis that the exporter himself is the best judge of the quality of his products and will not allow his reputation to be spoiled in the international market by compromising on quality. Self-Certification Scheme is granted to the exporter for the period of one year. Exporters with proven reputation can obtain the permission for self certification by submitting an application to the Director (Inspection and Quality Control), Export Inspection Council of India, 11th Floor, Pragati Tower, 26 Rajendra Place, New Delhi.
Under the self Certification Scheme, large exporters and manufacturers are allowed to inspect their product without involving any other party. The facility is available to manufacturers of engineering products, chemical and allied products and marine products. Self-Certification is given on the basis that the exporter himself is the best judge of the quality of his products and will not allow his reputation to be spoiled in the international market by compromising on quality. Self-Certification Scheme is granted to the exporter for the period of one year. Exporters with proven reputation can obtain the permission for self certification by submitting an application to the Director (Inspection and Quality Control), Export Inspection Council of India, 11th Floor, Pragati Tower, 26 Rajendra Place, New Delhi.
ISO 9000
The discussion on inspection certificate and quality control is incomplete without ISO-9000. Established in 1987, ISO 9000 is a series of international standards that has been accepted worldwide as the norm assuring high quality of goods. The current version of ISO 9000 is ISO 9000:2000.
The discussion on inspection certificate and quality control is incomplete without ISO-9000. Established in 1987, ISO 9000 is a series of international standards that has been accepted worldwide as the norm assuring high quality of goods. The current version of ISO 9000 is ISO 9000:2000.
Export Documents.
- Introduction
- Shipping
Bill / Bill of Export
- Customs
Declaration Form
- Dispatch
Note
- Commercial
invoice
- Consular
Invoice
- Customs
Invoice
- Legalised
/ Visaed Invoice
- Certified
Invoice
- Packing
List
- Certificate
of Inspection
- Black
List Certificate
- Manufacturer's
Certificate
- Certificate
of Chemical Analysis
- Certificate
of Shipment
- Health/
Veterinary/ Sanitary Certification
- Certificate
of Conditioning
- Antiquity
Measurement
- Shipping
Order
- Cart/
Lorry Ticket
- Shut
Out Advice
- Short
Shipment Form
Introduction
An exporter without any commercial contract is completely exposed of foreign exchange risks that arises due to the probability of an adverse change in exchange rates. Therefore, it becomes important for the exporter to gain some knowledge about the foreign exchange rates, quoting of exchange rates and various factors determining the exchange rates. In this section, we have discussed various topics related to foreign exchange rates in detail.
An exporter without any commercial contract is completely exposed of foreign exchange risks that arises due to the probability of an adverse change in exchange rates. Therefore, it becomes important for the exporter to gain some knowledge about the foreign exchange rates, quoting of exchange rates and various factors determining the exchange rates. In this section, we have discussed various topics related to foreign exchange rates in detail.
Export from
India required special document depending upon the type of product and
destination to be exported. Export Documents not only gives detail about the
product and its destination port but are also used for the purpose of taxation
and quality control inspection certification.
Shipping Bill / Bill of Export
Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties, included ship's owner, seller, buyer and some other parties. For each one represents a kind of certificate document.
Shipping Bill / Bill of Export
Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties, included ship's owner, seller, buyer and some other parties. For each one represents a kind of certificate document.
Documents
Required for Post Parcel Customs Clearance
In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned below:
In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned below:
- Customs Declaration Form - It is prescribed by the
Universal Postal Union (UPU) and international apex body coordinating
activities of national postal administration. It is known by the code
number CP2/ CP3 and to be prepared in quadruplicate, signed by the sender.
- Despatch
Note- It is filled by the exporter
to specify the action to be taken by the postal department at the
destination in case the address is non-traceable or the parcel is refused
to be accepted.
- Commercial Invoice - Issued by the exporter for the full realisable amount
of goods as per trade term.
- Consular Invoice - Mainly needed for the countries like Kenya, Uganda,
Tanzania, Mauritius, New Zealand, Burma, Iraq, Ausatralia, Fiji, Cyprus,
Nigeria, Ghana, Zanzibar etc. It is prepared in the prescribed format and
is signed/ certified by the counsel of the importing country located in
the country of export.
- Customs
Invoice - Mainly needed for the
countries like USA, Canada, etc. It is prepared on a special form being
presented by the Customs authorities of the importing country. It
facilitates entry of goods in the importing country at preferential tariff
rate.
- Legalised / Visaed Invoice - This shows the seller's
genuineness before the appropriate consulate or chamber or commerce/
embassy.
- Certified Invoice - It is required when the exporter needs to certify on
the invoice that the goods are of a particular origin or manufactured/
packed at a particular place and in accordance with specific contract.
Sight Draft and Usance Draft are available for this. Sight Draft is
required when the exporter expects immediate payment and Usance Draft is
required for credit delivery.
- Packing
List - It shows the details of goods
contained in each parcel / shipment.
- Certificate of Inspection – It is a type of document
describing the condition of goods and confirming that they have been
inspected.
- Black List Certificate - It is required for countries which have strained
political relation. It certifies that the ship or the aircraft carrying
the goods has not touched those country(s).
- Manufacturer's Certificate - It is required in addition to
the Certificate of Origin for few countries to show that the goods shipped
have actually been manufactured and is available.
- Certificate of Chemical Analysis - It is required to ensure the
quality and grade of certain items such as metallic ores, pigments, etc.
- Certificate of Shipment - It signifies that a certain lot of goods have been
shipped.
- Health/ Veterinary/ Sanitary Certification - Required for export of
foodstuffs, marine products, hides, livestock etc.
- Certificate of Conditioning - It is issued by the competent office to certify
compliance of humidity factor, dry weight, etc.
- Antiquity Measurement – It is issued by Archaeological Survey of India in case
of antiques.
- Shipping
Order - Issued by the Shipping
(Conference) Line which intimates the exporter about the reservation of
space of shipment of cargo through the specific vessel from a specified port
and on a specified date.
- Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the
port gate and includes the shipper's name, cart/ lorry No., marks on
packages, quantity, etc.
- Shut
Out Advice - It is a statement of packages
which are shut out by a ship and is prepared by the concerned shed and is
sent to the exporter.
- Short Shipment Form - It is an application to the
customs authorities at port which advises short shipment of goods and
required for claiming the return.
Customs Procedure for Export.
- Registration
- Processing
of Shipping
Bill
- Quota
Allocation
- Arrival
of Goods at Docks
- System
Appraisal of Shipping
Bills
- Customs
Examination of Export Cargo
- Stuffing
/ Loading of Goods in Containers
- Drawal
of Samples
- Amendments
- Export
of Goods under Claim for Drawback
- Generation
of Shipping Bills
In India
custom clearance is a complex and time taking procedure that every export face
in his export business. Physical control is still the basis of custom clearance
in India where each consignment is manually examined in order to impose various
types of export duties. High import tariffs and multiplicity of exemptions and
export promotion schemes also contribute in complicating the documentation and
procedures. So, a proper knowledge of the custom rules and regulation becomes
important for the exporter. For clearance of export goods, the exporter or
export agent has to undertake the following formalities:
Registration
Any exporter who wants to export his good need to obtain PAN based Business Identification Number (BIN) from the Directorate General of Foreign Trade prior to filing of shipping bill for clearance of export goods. The exporters must also register themselves to the authorised foreign exchange dealer code and open a current account in the designated bank for credit of any drawback incentive.
Any exporter who wants to export his good need to obtain PAN based Business Identification Number (BIN) from the Directorate General of Foreign Trade prior to filing of shipping bill for clearance of export goods. The exporters must also register themselves to the authorised foreign exchange dealer code and open a current account in the designated bank for credit of any drawback incentive.
Registration
in the case of export under export promotion schemes:
All the exporters intending to export under the export promotion scheme need to get their licences / DEEC book etc.
All the exporters intending to export under the export promotion scheme need to get their licences / DEEC book etc.
Processing of Shipping Bill - Non-EDI:
In case of Non-EDI, the shipping bills or bills of export are required to be filled in the format as prescribed in the Shipping Bill and Bill of Export (Form) regulations, 1991. An exporter need to apply different forms of shipping bill/ bill of export for export of duty free goods, export of dutiable goods and export under drawback etc.
In case of Non-EDI, the shipping bills or bills of export are required to be filled in the format as prescribed in the Shipping Bill and Bill of Export (Form) regulations, 1991. An exporter need to apply different forms of shipping bill/ bill of export for export of duty free goods, export of dutiable goods and export under drawback etc.
Processing
of Shipping Bill - EDI:
Under EDI System, declarations in prescribed format are to be filed through the Service Centers of Customs. A checklist is generated for verification of data by the exporter/CHA. After verification, the data is submitted to the System by the Service Center operator and the System generates a Shipping Bill Number, which is endorsed on the printed checklist and returned to the exporter/CHA. For export items which are subject to export cess, the TR-6 challans for cess is printed and given by the Service Center to the exporter/CHA immediately after submission of shipping bill. The cess can be paid on the strength of the challan at the designated bank. No copy of shipping bill is made available to exporter/CHA at this stage.
Under EDI System, declarations in prescribed format are to be filed through the Service Centers of Customs. A checklist is generated for verification of data by the exporter/CHA. After verification, the data is submitted to the System by the Service Center operator and the System generates a Shipping Bill Number, which is endorsed on the printed checklist and returned to the exporter/CHA. For export items which are subject to export cess, the TR-6 challans for cess is printed and given by the Service Center to the exporter/CHA immediately after submission of shipping bill. The cess can be paid on the strength of the challan at the designated bank. No copy of shipping bill is made available to exporter/CHA at this stage.
Quota Allocation
The quota allocation label is required to be pasted on the export invoice. The allocation number of AEPC (Apparel Export Promotion Council) is to be entered in the system at the time of shipping bill entry. The quota certification of export invoice needs to be submitted to Customs along-with other original documents at the time of examination of the export cargo. For determining the validity date of the quota, the relevant date needs to be the date on which the full consignment is presented to the Customs for examination and duly recorded in the Computer System.
The quota allocation label is required to be pasted on the export invoice. The allocation number of AEPC (Apparel Export Promotion Council) is to be entered in the system at the time of shipping bill entry. The quota certification of export invoice needs to be submitted to Customs along-with other original documents at the time of examination of the export cargo. For determining the validity date of the quota, the relevant date needs to be the date on which the full consignment is presented to the Customs for examination and duly recorded in the Computer System.
Arrival of Goods at Docks:
On the basis of examination and inspection goods are allowed enter into the Dock. At this stage the port authorities check the quantity of the goods with the documents.
On the basis of examination and inspection goods are allowed enter into the Dock. At this stage the port authorities check the quantity of the goods with the documents.
System Appraisal of Shipping Bills:
In most of the cases, a Shipping Bill is processed by the system on the basis of declarations made by the exporters without any human intervention. Sometimes the Shipping Bill is also processed on screen by the Customs Officer.
In most of the cases, a Shipping Bill is processed by the system on the basis of declarations made by the exporters without any human intervention. Sometimes the Shipping Bill is also processed on screen by the Customs Officer.
Customs Examination of Export Cargo:
Customs Officer may verify the quantity of the goods actually received and enter into the system and thereafter mark the Electronic Shipping Bill and also hand over all original documents to the Dock Appraiser of the Dock who many assign a Customs Officer for the examination and intimate the officers’ name and the packages to be examined, if any, on the check list and return it to the exporter or his agent.
The Customs Officer may inspect/examine the shipment along with the Dock Appraiser. The Customs Officer enters the examination report in the system. He then marks the Electronic Bill along with all original documents and check list to the Dock Appraiser. If the Dock Appraiser is satisfied that the particulars entered in the system conform to the description given in the original documents and as seen in the physical examination, he may proceed to allow "let export" for the shipment and inform the exporter or his agent.
Customs Officer may verify the quantity of the goods actually received and enter into the system and thereafter mark the Electronic Shipping Bill and also hand over all original documents to the Dock Appraiser of the Dock who many assign a Customs Officer for the examination and intimate the officers’ name and the packages to be examined, if any, on the check list and return it to the exporter or his agent.
The Customs Officer may inspect/examine the shipment along with the Dock Appraiser. The Customs Officer enters the examination report in the system. He then marks the Electronic Bill along with all original documents and check list to the Dock Appraiser. If the Dock Appraiser is satisfied that the particulars entered in the system conform to the description given in the original documents and as seen in the physical examination, he may proceed to allow "let export" for the shipment and inform the exporter or his agent.
Stuffing / Loading of Goods in
Containers
The exporter or export agent hand over the exporter’s copy of the shipping bill signed by the Appraiser “Let Export" to the steamer agent. The agent then approaches the proper officer for allowing the shipment. The Customs Preventive Officer supervising the loading of container and general cargo in to the vessel may give "Shipped on Board" approval on the exporter’s copy of the shipping bill.
The exporter or export agent hand over the exporter’s copy of the shipping bill signed by the Appraiser “Let Export" to the steamer agent. The agent then approaches the proper officer for allowing the shipment. The Customs Preventive Officer supervising the loading of container and general cargo in to the vessel may give "Shipped on Board" approval on the exporter’s copy of the shipping bill.
Drawal of Samples:
Where the Appraiser Dock (export) orders for samples to be drawn and tested, the Customs Officer may proceed to draw two samples from the consignment and enter the particulars thereof along with details of the testing agency in the ICES/E system. There is no separate register for recording dates of samples drawn. Three copies of the test memo are prepared by the Customs Officer and are signed by the Customs Officer and Appraising Officer on behalf of Customs and the exporter or his agent. The disposal of the three copies of the test memo is as follows:-
Where the Appraiser Dock (export) orders for samples to be drawn and tested, the Customs Officer may proceed to draw two samples from the consignment and enter the particulars thereof along with details of the testing agency in the ICES/E system. There is no separate register for recording dates of samples drawn. Three copies of the test memo are prepared by the Customs Officer and are signed by the Customs Officer and Appraising Officer on behalf of Customs and the exporter or his agent. The disposal of the three copies of the test memo is as follows:-
- Original – to be sent along
with the sample to the test agency.
- Duplicate – Customs copy to be
retained with the 2nd sample.
- Triplicate – Exporter’s copy.
The Assistant
Commissioner/Deputy Commissioner if he considers necessary, may also order for
sample to be drawn for purpose other than testing such as visual inspection and
verification of description, market value inquiry, etc.
Amendments:
Any correction/amendments in the check list generated after filing of declaration can be made at the service center, if the documents have not yet been submitted in the system and the shipping bill number has not been generated. In situations, where corrections are required to be made after the generation of the shipping bill number or after the goods have been brought into the Export Dock, amendments is carried out in the following manners.
Any correction/amendments in the check list generated after filing of declaration can be made at the service center, if the documents have not yet been submitted in the system and the shipping bill number has not been generated. In situations, where corrections are required to be made after the generation of the shipping bill number or after the goods have been brought into the Export Dock, amendments is carried out in the following manners.
1.
The goods
have not yet been allowed "let export" amendments may be permitted by
the Assistant Commissioner (Exports).
2.
Where
the "Let Export" order has already been given, amendments may be
permitted only by the Additional/Joint Commissioner, Custom House, in charge of
export section.
In both the
cases, after the permission for amendments has been granted, the Assistant
Commissioner / Deputy Commissioner (Export) may approve the amendments on the
system on behalf of the Additional /Joint Commissioner. Where the print out of
the Shipping Bill has already been generated, the exporter may first surrender
all copies of the shipping bill to the Dock Appraiser for cancellation before
amendment is approved on the system.
Export of Goods under Claim for
Drawback:
After actual export of the goods, the Drawback claim is processed through EDI system by the officers of Drawback Branch on first come first served basis without feeling any separate form.
After actual export of the goods, the Drawback claim is processed through EDI system by the officers of Drawback Branch on first come first served basis without feeling any separate form.
Generation of Shipping Bills:
The Shipping Bill is generated by the system in two copies- one as Custom copy and one as exporter copy. Both the copies are then signed by the Custom officer and the Custom House Agent.
The Shipping Bill is generated by the system in two copies- one as Custom copy and one as exporter copy. Both the copies are then signed by the Custom officer and the Custom House Agent.
Invisible Export.
- Introduction
- Export
Performance of the Indian service Industry
- Government
Initiatives
- Strengths
and Weaknesses of Indian Consulting Industry
Introduction
Invisible export is the part of international trade that does not involve the transfer of goods or tangible objects, which mostly include service sectors like banking, advertising, copyrights, insurance, consultancy etc. invisible exort also known as invisible trade is basically associated with the person’s own skill and knowledge is what is 'sold' rather than a piece of software or books.
Invisible export is the part of international trade that does not involve the transfer of goods or tangible objects, which mostly include service sectors like banking, advertising, copyrights, insurance, consultancy etc. invisible exort also known as invisible trade is basically associated with the person’s own skill and knowledge is what is 'sold' rather than a piece of software or books.
Invisible
trade is composed of invisible imports and invisible exports. Since nothing
tangible is transferred, the importer is defined as the person, group or
country that receives the service. The exporter is defined as the supplier of
the service. The net total of a country's invisible imports and invisible
exports is called the invisible balance of trade and is a part of the country's
balance of trade. For countries that rely on service exports or on tourism, the
invisible balance is particularly important.
Export Performance of the Indian
service Industry
An analysis of the consultancy contracts secured by Indian project in the foreign market has been carried out by Exim Bank of India. As per the analysis, done during 1995-96 to 2000-01 indicates that consultancy contracts were secured largely in West Asia which accounted for 39% number wise and 46% value wise followed by South East Asia and Pacific & South Asia.
An analysis of the consultancy contracts secured by Indian project in the foreign market has been carried out by Exim Bank of India. As per the analysis, done during 1995-96 to 2000-01 indicates that consultancy contracts were secured largely in West Asia which accounted for 39% number wise and 46% value wise followed by South East Asia and Pacific & South Asia.
South East
Asia constituted 22% both by number and by value whereas South Asia was 18%
number wise and 16% value wise. According to the 2002 data of the Federation of
Indian Export Organizations (FIEO), India's share in global trade in services
was about 1.3%. India’s share of consultancy exports is about 0.5% of global
trade in services.
Government Initiatives
In the recent years the Government of India has take some important step for the improvement of service based export. The Foreign Trade Policy, 2004 – 09 is one of them, which has announced the setting up of Services Export Promotion Council for promoting the Indian service sector in the foreign market. Government of India has also introduced Market Development Assistance (MDA), Market Access Initiative (MAI) scheme, proactive EXIM Policy and EXIM Bank schemes. Government also provides exemption on service tax for export of consultancy services. However due to lack of clarity in the provisions in the present notification, consultancy export may be affected.
In the recent years the Government of India has take some important step for the improvement of service based export. The Foreign Trade Policy, 2004 – 09 is one of them, which has announced the setting up of Services Export Promotion Council for promoting the Indian service sector in the foreign market. Government of India has also introduced Market Development Assistance (MDA), Market Access Initiative (MAI) scheme, proactive EXIM Policy and EXIM Bank schemes. Government also provides exemption on service tax for export of consultancy services. However due to lack of clarity in the provisions in the present notification, consultancy export may be affected.
- The major strengths of Indian
invisible export or invisible trade include professional competence, low
cost structure, diverse capabilities, high adaptability and quick learning
capability of Indian consultants.
- The major weaknesses of Indian
invisible trade or invisible export include low quality assurance, low
local presence overseas, low equity base, lack of market intelligence and
low level of R&D.
Export to SAARC Member Countries.
- Introduction
- South
Asian Free Trade Area (SAFTA)
- Preferential
Trade Agreement (PTA)
- Export
to Afghanistan
- Export
to Bangladesh
- Export
to Bhutan
- Export
to Sri Lanka
- Export
to Nepal
- Export
to Maldives
- Export
to Pakistan
Introduction
Established in 1985, SAARC or South Asian Association for Regional Cooperation is a group of eight countries including India, Pakistan, Sri Lanka, Afghanistan, Maldives, Bhutan, Bangladesh, and Nepal. They all are neighbor countries that share a lot of similarities in terms of religion and culture. Because of this Indian has adopted a liberal trade policy with these countries.
Established in 1985, SAARC or South Asian Association for Regional Cooperation is a group of eight countries including India, Pakistan, Sri Lanka, Afghanistan, Maldives, Bhutan, Bangladesh, and Nepal. They all are neighbor countries that share a lot of similarities in terms of religion and culture. Because of this Indian has adopted a liberal trade policy with these countries.
Apart from
SAARAC, India is also a member of BIMSTEC (Bangladesh, India, Myanmar, Sri Lanka,
and Thailand Economic Co-operation), International Monetary Fund (IMF), the
World Bank and the Asian Development Bank (ADB). India is even a founding
member of GATT and the World Trade Organisation (WTO).
South Asian Free Trade Area (SAFTA)
The Agreement on South Asian Free Trade Area (SAFTA) was signed at Islamabad during the Twelfth SAARC Summit on 6 January 2004. The Agreement on South Asian Free Trade Area (SAFTA) was signed by all the member states of the South Asian Association for Regional Cooperation (SAARC), namely, India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. India, Pakistan and Sri Lanka are categorized as Non-Least Developed Contracting States (NLDCS) and Bangladesh, Bhutan, Maldives and Nepal are categorized as Least Developed Contracting States (LDCS).
The Agreement on South Asian Free Trade Area (SAFTA) was signed at Islamabad during the Twelfth SAARC Summit on 6 January 2004. The Agreement on South Asian Free Trade Area (SAFTA) was signed by all the member states of the South Asian Association for Regional Cooperation (SAARC), namely, India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. India, Pakistan and Sri Lanka are categorized as Non-Least Developed Contracting States (NLDCS) and Bangladesh, Bhutan, Maldives and Nepal are categorized as Least Developed Contracting States (LDCS).
Article 7 of
the SAFTA Agreement provides for a phased tariff liberalization programme (TLP)
under which, in two years, NLDCS would bring down tariffs to 20%, while LDCS
will bring them down to 30%. Non-LDCS will then bring down tariffs from 20% to
0-5% in 5 years (Sri Lanka 6 years), while LDCS will do so in 8 years. NLDCs
will reduce their tariffs for L.D.C. products to 0-5% in 3 years. This TLP
covers all tariff lines except those kept in the sensitive list (negative list)
by the member states.
Preferential Trade Agreement (PTA)
Preferential Trade Agreement (PTA) is a special type of agreement that gives access to only certain goods. Preferential Trade Agreement is done by reducing tariffs, but it does not abolish them completely. PTA is established through trade pact and it is the weakest form of economic integration. Among the SAARC countries, India enjoys PTA with the Afghanistan. Other countries that have PTA with India are Chile and MERCOSUR (a trading bloc in Latin America comprising Brazil, Argentina, Uruguay and Paraguay).
Preferential Trade Agreement (PTA) is a special type of agreement that gives access to only certain goods. Preferential Trade Agreement is done by reducing tariffs, but it does not abolish them completely. PTA is established through trade pact and it is the weakest form of economic integration. Among the SAARC countries, India enjoys PTA with the Afghanistan. Other countries that have PTA with India are Chile and MERCOSUR (a trading bloc in Latin America comprising Brazil, Argentina, Uruguay and Paraguay).
Export to Afghanistan
India has a signed a Preferential Trade Agreement (PTA) on March 6,2003 with the Afghanistan, according to which preferential tariff is granted by the Government of Afghanistan on eight items exported from India including tea, medicines, sugar, cement.
India has a signed a Preferential Trade Agreement (PTA) on March 6,2003 with the Afghanistan, according to which preferential tariff is granted by the Government of Afghanistan on eight items exported from India including tea, medicines, sugar, cement.
Export to Bangladesh
Bangladesh is one of the largest export markets for Indian trade. The bilateral trade between the two nations is carried out as per guidelines given in the Bangladesh Trade Agreement which provides beneficial arrangement for the use of waterways, railways and roadways passage of goods between two places in one country through the territory of the other.
Major items exported from India to Bangladesh include wheat other cereals, dairy products, oils meals, cotton yarn, fabrics, made ups, petroleum crude and products, plastic and linoleum products rice machinery and instruments and primary and semi finished iron and steel, pulses transport equipments drugs pharmaceuticals and fine chemicals processed mineral manmade yarn, fabrics, made ups manufactures of metal and fresh fruits and vegetables.
Bangladesh is one of the largest export markets for Indian trade. The bilateral trade between the two nations is carried out as per guidelines given in the Bangladesh Trade Agreement which provides beneficial arrangement for the use of waterways, railways and roadways passage of goods between two places in one country through the territory of the other.
Major items exported from India to Bangladesh include wheat other cereals, dairy products, oils meals, cotton yarn, fabrics, made ups, petroleum crude and products, plastic and linoleum products rice machinery and instruments and primary and semi finished iron and steel, pulses transport equipments drugs pharmaceuticals and fine chemicals processed mineral manmade yarn, fabrics, made ups manufactures of metal and fresh fruits and vegetables.
Export to Bhutan
The Free Trade Agreement between India and Bhutan provides for free trade between the two countries. Under this agreement India also provides shipment facilities through Indian Territory for Bhutan's Trade with third countries. All the export transactions are carried out in Indian Rupees and Bhutanese Ngultrum. Major items exported from India to Bangladesh include metals machinery and instruments, machine tools transport equipments, electronics goods rice (other than basmati), spirit and beverages, miscellaneous processed items primary and semi finished iron and steel and cereals.
The Free Trade Agreement between India and Bhutan provides for free trade between the two countries. Under this agreement India also provides shipment facilities through Indian Territory for Bhutan's Trade with third countries. All the export transactions are carried out in Indian Rupees and Bhutanese Ngultrum. Major items exported from India to Bangladesh include metals machinery and instruments, machine tools transport equipments, electronics goods rice (other than basmati), spirit and beverages, miscellaneous processed items primary and semi finished iron and steel and cereals.
Export to Sri Lanka
After Bangladesh, Sri Lanka is the biggest export market for India. Trade between the two countries is carried out as per guidelines mention in the Indo-Sri Lanka Free Trade Agreement (SAFTA). Major items of export from India have been pulses, wheat, other cereal spices, oil meals, fresh vegetables, miscellaneous processed items, drugs pharmaceuticals and fine chemicals inorganic/ organic agro chemicals rubber manufactured goods except footwear, glass , glassware ceramic and allied products paper/wood products plastic and linoleum products non ferrous metals manufactures of metals, machinery and instruments, iron and steel bar/rod etc. primary and semi finished iron and steel, electronic goods, cotton yarn, fabric, made ups, and petroleum crude and products.
After Bangladesh, Sri Lanka is the biggest export market for India. Trade between the two countries is carried out as per guidelines mention in the Indo-Sri Lanka Free Trade Agreement (SAFTA). Major items of export from India have been pulses, wheat, other cereal spices, oil meals, fresh vegetables, miscellaneous processed items, drugs pharmaceuticals and fine chemicals inorganic/ organic agro chemicals rubber manufactured goods except footwear, glass , glassware ceramic and allied products paper/wood products plastic and linoleum products non ferrous metals manufactures of metals, machinery and instruments, iron and steel bar/rod etc. primary and semi finished iron and steel, electronic goods, cotton yarn, fabric, made ups, and petroleum crude and products.
Export to Nepal
India-Nepal Trade Treaty between India and Nepal is signed for the time period of five years. Under this trade agreement major items exported from India include drugs , pharmaceuticals and fine chemicals, petroleum product, pulses, transport equipment, rice other than basmati, tobacco, manufactured, spices, oil meals fresh fruits and vegetables, miscellaneous processed items, ores and minerals glassware/ceramics, manufactures of metals, primary and semi finished iron and steel and cotton yarn fabrics made ups.
India-Nepal Trade Treaty between India and Nepal is signed for the time period of five years. Under this trade agreement major items exported from India include drugs , pharmaceuticals and fine chemicals, petroleum product, pulses, transport equipment, rice other than basmati, tobacco, manufactured, spices, oil meals fresh fruits and vegetables, miscellaneous processed items, ores and minerals glassware/ceramics, manufactures of metals, primary and semi finished iron and steel and cotton yarn fabrics made ups.
Export to Maldives
Trade between India and Maldives is governed by the rules as mentioned in the Indo-Maldives Trade Agreement signed on 31st March 1981. Under this agreement Indian major exports itmes to Maldives include rice other than basmati, sugar, fresh vegetables, miscellaneous processed item, drugs, pharmaceuticals and fine chemicals plastic and linoleum products, manufactures of metals and machinery equipment. India and Maldives also shares the status of “Most Favored Nation” with each other.
Trade between India and Maldives is governed by the rules as mentioned in the Indo-Maldives Trade Agreement signed on 31st March 1981. Under this agreement Indian major exports itmes to Maldives include rice other than basmati, sugar, fresh vegetables, miscellaneous processed item, drugs, pharmaceuticals and fine chemicals plastic and linoleum products, manufactures of metals and machinery equipment. India and Maldives also shares the status of “Most Favored Nation” with each other.
Export to Pakistan
No trade agreement has been signed between India and Pakistan till 2007. Although India has granted the status of “Most Favoured Nation” to Pakistan since 1996 but Pakistan has yet to reciprocate by granting this status to India.
Indian exports to Pakistan are restricted to a list 773 items known as Positive List and include rice other than basmati, spices, oil meals, iron ore, drugs, pharmaceuticals and fine chemicals rubber manufactured products except footwear, plastic and linoleum products, manufactures of metals and petroleum crude and products.
No trade agreement has been signed between India and Pakistan till 2007. Although India has granted the status of “Most Favoured Nation” to Pakistan since 1996 but Pakistan has yet to reciprocate by granting this status to India.
Indian exports to Pakistan are restricted to a list 773 items known as Positive List and include rice other than basmati, spices, oil meals, iron ore, drugs, pharmaceuticals and fine chemicals rubber manufactured products except footwear, plastic and linoleum products, manufactures of metals and petroleum crude and products.
Export From India to CIS Countires.
- Introduction
- Major
Trading Partners in the CIS Region
- Major
Items of Exports
- India
CIS Trade Relations - Armenia
- India
CIS trade relations – Georgia
- India
CIS Trade Relations – Ukraine
- India
CIS Trade Relations – Latvia
- India
CIS Trade Relations – Estonia
- India
CIS Trade Relations – Lithuania
- India
CIS Trade Relations – Belarus
Introduction
Commonwealth of Independent States (CIS) was founded in 1991 after the dissolution of the Soviet Union. At present the CIS includes Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine. Relations between India and countries of the CIS Region have remained close and cordial since the Soviet era. However, bilateral trade and commercial relations of India have not grown commensurately with these newly formed countries. Due to the factors like distance, language barrier, inadequate transport facility, inadequacy of information about business opportunities CIS only constitutes 1.2% share in India's total exports.
Commonwealth of Independent States (CIS) was founded in 1991 after the dissolution of the Soviet Union. At present the CIS includes Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine. Relations between India and countries of the CIS Region have remained close and cordial since the Soviet era. However, bilateral trade and commercial relations of India have not grown commensurately with these newly formed countries. Due to the factors like distance, language barrier, inadequate transport facility, inadequacy of information about business opportunities CIS only constitutes 1.2% share in India's total exports.
Major Trading Partners in the CIS
Region
Russia, Ukraine, Kazakhstan, Uzbekistan, Kyrgyzstan, and Belarus are India's major trading partners, constituting more than 90% of India's total bilateral trade with the CIS countries.
Russia, Ukraine, Kazakhstan, Uzbekistan, Kyrgyzstan, and Belarus are India's major trading partners, constituting more than 90% of India's total bilateral trade with the CIS countries.
Major Items of Exports
India's major items of export to this region are : cotton, drugs, pharmaceuticals coffee, tea tobacco machinery & instrument, processed mineral, plastic and Linoleum products gem & jewellery, transport equipment, etc.
India's major items of export to this region are : cotton, drugs, pharmaceuticals coffee, tea tobacco machinery & instrument, processed mineral, plastic and Linoleum products gem & jewellery, transport equipment, etc.
India CIS Trade Relations - Armenia
Despite a trade agreement being signed, India's trade with Armenia after independence has been not worth mentioning. Indian exports to Armenia in 2002 were worth US$ 5.6 million which mainly includes car batteries, chemical goods, pharmaceuticals, and electrical equipments.
Despite a trade agreement being signed, India's trade with Armenia after independence has been not worth mentioning. Indian exports to Armenia in 2002 were worth US$ 5.6 million which mainly includes car batteries, chemical goods, pharmaceuticals, and electrical equipments.
India CIS trade relations –
Georgia
Trade relations between India and Georgia were established in 1992, according to which two countries agreed that there would be cooperation within the framework of Indian Council for Cultural Relations and Indian Technical and Economic Cooperation. Trade turnover between India and Georgia in 2006 was US$ 20,521,700. Laws on tariffs have been simplified and so far the trend has been such that India's exports to Georgia have been more than Georgia's exports to India.
Trade relations between India and Georgia were established in 1992, according to which two countries agreed that there would be cooperation within the framework of Indian Council for Cultural Relations and Indian Technical and Economic Cooperation. Trade turnover between India and Georgia in 2006 was US$ 20,521,700. Laws on tariffs have been simplified and so far the trend has been such that India's exports to Georgia have been more than Georgia's exports to India.
India CIS Trade Relations – Ukraine
Ukraine is the second largest trade partner of India in the CIS region, after the Russian Federation. Diplomatic relations between India and Ukraine were established way back in the 1960s. In March, 1992 a treaty on friendship and cooperation was signed to strengthen bilateral trade. More than 17 bilateral Agreements have been signed between India and Ukraine, including agreements on Cooperation in Science and Technology, Foreign Office Consultation, Cooperation in Space Research, Avoidance of Double Taxation and Promotion and Protection of Investments. The amount of bilateral trade that took place between the two countries in 2004 was worth more than $500,000. India mainly exports pharmaceutical products to Ukraine.
India CIS Trade Relations – Latvia
In 1991, diplomatic relations between the two countries were formed. Bilateral trade relations between these two countries are not very intense due to inaction on both sides. Import to Latvia amounted to US$ 16,954,219 and the export stood at US$ 2,554,392 in 2005. The major export items from India include pharmaceuticals and healthcare products, telecommunications, IT and software, development; heavy engineering; export of textiles gems and jewellery, chemicals and dyes, vegetables and fruits, leather and leather products and third country exports.
India CIS Trade Relations – Estonia
Diplomatic relations between the two countries were established in December, 1991. In 2005, the total amount of bilateral trade that took place was €19.6 million. India mainly exports vegetables, chemical, and textile products to Estonia.
Ukraine is the second largest trade partner of India in the CIS region, after the Russian Federation. Diplomatic relations between India and Ukraine were established way back in the 1960s. In March, 1992 a treaty on friendship and cooperation was signed to strengthen bilateral trade. More than 17 bilateral Agreements have been signed between India and Ukraine, including agreements on Cooperation in Science and Technology, Foreign Office Consultation, Cooperation in Space Research, Avoidance of Double Taxation and Promotion and Protection of Investments. The amount of bilateral trade that took place between the two countries in 2004 was worth more than $500,000. India mainly exports pharmaceutical products to Ukraine.
India CIS Trade Relations – Latvia
In 1991, diplomatic relations between the two countries were formed. Bilateral trade relations between these two countries are not very intense due to inaction on both sides. Import to Latvia amounted to US$ 16,954,219 and the export stood at US$ 2,554,392 in 2005. The major export items from India include pharmaceuticals and healthcare products, telecommunications, IT and software, development; heavy engineering; export of textiles gems and jewellery, chemicals and dyes, vegetables and fruits, leather and leather products and third country exports.
India CIS Trade Relations – Estonia
Diplomatic relations between the two countries were established in December, 1991. In 2005, the total amount of bilateral trade that took place was €19.6 million. India mainly exports vegetables, chemical, and textile products to Estonia.
India CIS Trade Relations –
Lithuania
In July, 1993 an Agreement on Trade and Economic Cooperation was signed between India and Lithuania. India mainly exports pharmaceuticals, paper, and textiles items to Lithuania. The major items imported from India include pharmaceuticals, paper, and textiles. Lithuania exports cement, metals, sulphur, and base metals. The total bilateral trade between the two countries stands at US$ 47.06.
In July, 1993 an Agreement on Trade and Economic Cooperation was signed between India and Lithuania. India mainly exports pharmaceuticals, paper, and textiles items to Lithuania. The major items imported from India include pharmaceuticals, paper, and textiles. Lithuania exports cement, metals, sulphur, and base metals. The total bilateral trade between the two countries stands at US$ 47.06.
India CIS Trade Relations – Belarus
In 2005, India's trade turnover with Belarus amounted to around US$ 118.3 million. The export items from India include pharmaceuticals, tea, rice, pepper, yarn, organic dyes, machine and electrical equipments.
In 2005, India's trade turnover with Belarus amounted to around US$ 118.3 million. The export items from India include pharmaceuticals, tea, rice, pepper, yarn, organic dyes, machine and electrical equipments.
Organisations Supporting to Exporters.
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- Introduction
- Export
Promotion Councils (EPC)
- Commodity
Boards
- Federation
of Indian Export Organisations (FIEO)
- Indian
Institute of Foreign Trade (IIFT)
- Indian
Institution of Packaging (IIP)
- Export
Inspection Council (EIC)
- Indian
Council of Arbitration (ICA)
- India
Trade Promotion Organisation (ITPO)
- Chamber
of Commerce & Industry (CII)
- Federation
of Indian Chamber of Commerce & Industry (FICCI)
- Bureau
of Indian Standards (BIS)
- Marine
Products Export Development Authority (MPEDA)
- India
Investment Centre (IIC)
- Directorate
General of Foreign Trade (DGFT)
- Director
General of Commercial Intelligence Statistics (DGCIS)
Introduction
In India there are a number of organisation and agencies that provides various types of support to the exporters from time to time. These export organisations provides market research in the area of foreign trade, dissemination of information arising from its activities relating to research and market studies. So, exporter should contact them for the necessary assistance.
Export Promotion Councils (EPC)
Export Promotion Councils are registered as non -profit organisations under the Indian Companies Act. At present there are eleven Export Promotion Councils under the administrative control of the Department of Commerce and nine export promotion councils related to textile sector under the administrative control of Ministry of Textiles. The Export Promotion Councils perform both advisory and executive functions. These Councils are also the registering authorities under the Export Import Policy, 2002-2007.
Export Promotion Councils are registered as non -profit organisations under the Indian Companies Act. At present there are eleven Export Promotion Councils under the administrative control of the Department of Commerce and nine export promotion councils related to textile sector under the administrative control of Ministry of Textiles. The Export Promotion Councils perform both advisory and executive functions. These Councils are also the registering authorities under the Export Import Policy, 2002-2007.
Commodity Boards
Commodity Board is registered agency designated by the Ministry of Commerce, Government of India for purposes of export-promotion and has offices in India and abroad. There are five statutory Commodity Boards, which are responsible for production, development and export of tea, coffee, rubber, spices and tobacco.
Commodity Board is registered agency designated by the Ministry of Commerce, Government of India for purposes of export-promotion and has offices in India and abroad. There are five statutory Commodity Boards, which are responsible for production, development and export of tea, coffee, rubber, spices and tobacco.
Federation of Indian Export
Organisations (FIEO)
FIEO was set up jointly by the Ministry of Commerce, Government of India and private trade and industry in the year 1965. FIEO is thus a partner of the Government of India in promoting India’s exports.
Address: Niryaat Bhawan, Rao Tula Ram Marg, Opp. Army Hospital. Research & Referral, New Delhi 110057
FIEO was set up jointly by the Ministry of Commerce, Government of India and private trade and industry in the year 1965. FIEO is thus a partner of the Government of India in promoting India’s exports.
Address: Niryaat Bhawan, Rao Tula Ram Marg, Opp. Army Hospital. Research & Referral, New Delhi 110057
Indian Institute of Foreign Trade
(IIFT)
The Indian Institute of Foreign Trade (IIFT) was set up in 1963 by the Government of India as an autonomous organisation to help Indian exporters in foreign trade management and increase exports by developing human resources, generating, analysing and disseminating data and conducting research.
Address: B-21 Kutub Institutional Area, Mehrauli Road, New Delhi-110016
The Indian Institute of Foreign Trade (IIFT) was set up in 1963 by the Government of India as an autonomous organisation to help Indian exporters in foreign trade management and increase exports by developing human resources, generating, analysing and disseminating data and conducting research.
Address: B-21 Kutub Institutional Area, Mehrauli Road, New Delhi-110016
Indian Institution of Packaging
(IIP)
The Indian Institute of Packaging or IIP in short was established in 1966 under the Societies Registration Act (1860). Headquartered in Mumbai, IIP also has testing and development laboratories at Calcutta, New Delhi and Chennai. The Institute is closely linked with international organisations and is recognized by the UNIDO (United Nations Industrial Development Organisation) and the ITC (International Trading Centre) for consultancy and training. The IIP is a member of the Asian Packaging Federation (APF), the Institute of Packaging Professionals (IOPP) USA, the Insitute of Packaging (IOP) UK, Technical Association of PULP AND Paper Industry (TAPPI), USA and the World Packaging Organisation (WPO).
Address: B-2, MIDC Area, P.B. 9432, Andheri (E), Mumbai 400096.
The Indian Institute of Packaging or IIP in short was established in 1966 under the Societies Registration Act (1860). Headquartered in Mumbai, IIP also has testing and development laboratories at Calcutta, New Delhi and Chennai. The Institute is closely linked with international organisations and is recognized by the UNIDO (United Nations Industrial Development Organisation) and the ITC (International Trading Centre) for consultancy and training. The IIP is a member of the Asian Packaging Federation (APF), the Institute of Packaging Professionals (IOPP) USA, the Insitute of Packaging (IOP) UK, Technical Association of PULP AND Paper Industry (TAPPI), USA and the World Packaging Organisation (WPO).
Address: B-2, MIDC Area, P.B. 9432, Andheri (E), Mumbai 400096.
Export Inspection Council (EIC)
The Export Inspection Council or EIC in short, was set up by the Government of India under Section 3 of the Export (Quality Control and Inspection) Act, 1963 in order to ensure sound development of export trade of India through Quality Control and Inspection.
Address: 3rd Floor, ND YMCA, Cultural Centre Bldg., 1, Jai Singh Road, New Delhi-110001.
The Export Inspection Council or EIC in short, was set up by the Government of India under Section 3 of the Export (Quality Control and Inspection) Act, 1963 in order to ensure sound development of export trade of India through Quality Control and Inspection.
Address: 3rd Floor, ND YMCA, Cultural Centre Bldg., 1, Jai Singh Road, New Delhi-110001.
Indian Council of Arbitration (ICA)
The Indian Council for Arbitration (ICA) was established on April 15, 1965. ICA provides arbitration facilities for all types of Indian and international commercial disputes through its international panel of arbitrators with eminent and experienced persons from different lines of trade and professions.
Address: Federation House, Tansen Marg, New Delhi-110001
India Trade Promotion Organisation (ITPO)
ITPO is a government organisation for promoting the country’s external trade. Its promotional tools include organizing of fairs and exhibitions in India and abroad, Buyer-Seller Meets, Contact Promotion Programmes, Product Promotion Programmes, Promotion through Overseas Department Stores, Market Surveys and Information Dissemination.
Address: Pragati Bhawan Pragati Maidan, New Delhi-10001
Chamber of Commerce & Industry (CII)
CII play an active role in issuing certificate of origin and taking up specific cases of exporters to the Govt.
Federation of Indian Chamber of Commerce & Industry (FICCI)
Federation of Indian Chambers of Commerce and Industry or FICCI is an association of business organisations in India. FICCI acts as the proactive business solution provider through research, interactions at the highest political level and global networking.
Address: Federation House, Tansen Marg, New Delhi-110001
Bureau of Indian Standards (BIS)
The Bureau of Indian Standards (BIS), the National Standards Body of India, is a statutory body set up under the Bureau of Indian Standards Act, 1986. BIS is engaged in standard formulation, certification marking and laboratory testing.
Address: 9, Manak Bhavan, Bahadur Shah Zafar Marg, New Delhi-110002
Textile Committee
Textile Committee carries pre-shipment inspection of textiles and market research for textile yarns, textile machines etc.
Address: Textile Centre, second Floor, 34 PD, Mello Road, Wadi Bandar, Bombay-400009
The Indian Council for Arbitration (ICA) was established on April 15, 1965. ICA provides arbitration facilities for all types of Indian and international commercial disputes through its international panel of arbitrators with eminent and experienced persons from different lines of trade and professions.
Address: Federation House, Tansen Marg, New Delhi-110001
India Trade Promotion Organisation (ITPO)
ITPO is a government organisation for promoting the country’s external trade. Its promotional tools include organizing of fairs and exhibitions in India and abroad, Buyer-Seller Meets, Contact Promotion Programmes, Product Promotion Programmes, Promotion through Overseas Department Stores, Market Surveys and Information Dissemination.
Address: Pragati Bhawan Pragati Maidan, New Delhi-10001
Chamber of Commerce & Industry (CII)
CII play an active role in issuing certificate of origin and taking up specific cases of exporters to the Govt.
Federation of Indian Chamber of Commerce & Industry (FICCI)
Federation of Indian Chambers of Commerce and Industry or FICCI is an association of business organisations in India. FICCI acts as the proactive business solution provider through research, interactions at the highest political level and global networking.
Address: Federation House, Tansen Marg, New Delhi-110001
Bureau of Indian Standards (BIS)
The Bureau of Indian Standards (BIS), the National Standards Body of India, is a statutory body set up under the Bureau of Indian Standards Act, 1986. BIS is engaged in standard formulation, certification marking and laboratory testing.
Address: 9, Manak Bhavan, Bahadur Shah Zafar Marg, New Delhi-110002
Textile Committee
Textile Committee carries pre-shipment inspection of textiles and market research for textile yarns, textile machines etc.
Address: Textile Centre, second Floor, 34 PD, Mello Road, Wadi Bandar, Bombay-400009
Marine Products Export Development
Authority (MPEDA)
The Marine Products Export Development Authority (MPEDA) was constituted in 1972 under the Marine Products Export Development Authority Act 1972 and plays an active role in the development of marine products meant for export with special reference to processing, packaging, storage and marketing etc.
Address: P.B No.4272 MPEDA House, pannampilly Avenue, Parampily Nagar, Cochin-682036
The Marine Products Export Development Authority (MPEDA) was constituted in 1972 under the Marine Products Export Development Authority Act 1972 and plays an active role in the development of marine products meant for export with special reference to processing, packaging, storage and marketing etc.
Address: P.B No.4272 MPEDA House, pannampilly Avenue, Parampily Nagar, Cochin-682036
India Investment Centre (IIC)
Indian Investment Center (IIC) was set up in 1960 as an independent organization, which is under the Ministry of Finance, Government of India. The main objective behind the setting up of IIC was to encourage foreign private investment in the country. IIC also assist Indian Businessmen for setting up of Industrial or other Joint ventures abroad.
Address: Jeevan Vihar, 4th Floor, Parliament Street, New Delhi-110001
Indian Investment Center (IIC) was set up in 1960 as an independent organization, which is under the Ministry of Finance, Government of India. The main objective behind the setting up of IIC was to encourage foreign private investment in the country. IIC also assist Indian Businessmen for setting up of Industrial or other Joint ventures abroad.
Address: Jeevan Vihar, 4th Floor, Parliament Street, New Delhi-110001
Directorate General of Foreign Trade
(DGFT)
DGFT or Directorate General of Foreign Trade is a government organisation in India responsible for the formulation of guidelines and principles for importers and exporters of country.
Address: Udyog Bhawan, H-Wing, Gate No.2, Maulana Azad Road, New Delhi -110011
DGFT or Directorate General of Foreign Trade is a government organisation in India responsible for the formulation of guidelines and principles for importers and exporters of country.
Address: Udyog Bhawan, H-Wing, Gate No.2, Maulana Azad Road, New Delhi -110011
Director General of Commercial
Intelligence Statistics (DGCIS)
DGCIS is the Primary agency for the collection, compilation and the publication of the foreign inland and ancillary trade statistics and dissemination of various types of commercial informations.
Address: I, Council House Street Calcutta-700001,
DGCIS is the Primary agency for the collection, compilation and the publication of the foreign inland and ancillary trade statistics and dissemination of various types of commercial informations.
Address: I, Council House Street Calcutta-700001,
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