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    Project report mbd-final-shariq 1 Project report mbd-final-shariq 1 Document Transcript

    • PROJECT REPORT ON ―EXPORT PROCEDURE IN INTERNATIONAL MARKET‖ OFSUBMITTED BY- SUBMITTED TO-MOHD SHARIQ Ms. DEEPIKA DHALMBA-II SEM LECTURER10903091 [LIM]RT1902 A-25 1 Page 1
    • DECLARATIONI Mohd Shariq hereby declare that the summer project report titled ―EXPORT PROCEDUREIN INTERNATIONAL MARKET” written and submitted to LOVELY PROFESSIONALUNIVERSITY by me is my own and its equal copy has not been reproduced to any otherinstitution/university or published anywhere else.I understand that such reproducing is liable for punishment in any way the university deemfit.Place: Moradabad Mohd ShariqDate: Regd. No.-10903091 MBA 2 Page 2
    • COMPANY GUIDE CERTIFICATEThis is to certify that the summer project titled “Export procedure in international market”at ―AKBAR CORPORATION LIMITED ―is an original work of Md. Shariq , student ofLovely Institute of Management, Phagwara and is being submitted for partial fulfillment ofthe award of the Master of Business Administration (MBA) degree of Lovely ProfessionalUniversity, Phagwara. The final compilation of the report was also done under my guidanceand it has not been submitted earlier to anywhere else. Place: Moradabad Mohd Shariq Date:3AUG-2010 Regd. No. - 10903090 MBA MR- S.K.MAHESHWARI (EXPORT-MANAGER) OF ACL Name & Signature of the guide 3 Page 3
    • CERTIFICATE OF THE INSTITUTE GUIDEThis is to certify that the project titled ―‖export procedure in international market‖ is an original workof Mr.Mohd Shariq bearing University Registration Number 10903091 a student of LovelyInstitute of Management, Phagwara and is being submitted in partial fulfilment of the requirementsfor the award of the degree of Master of Business Administration of Lovely Professional University,Phagwara. The summer project report has not been submitted earlier to this University or to any otherUniversity / Institution for the fulfilment of the requirement of a course of study.. Date: 23 AUG-2010 Ms.DEEPIKA DHAL Name and signature of the guide 4 Page 4
    • AcknowledgementThe journey of success is not completed without proper support and guidance —it is oftensaid. I realized it even better during my summer internship program. I may not have comethis far without help, guidance and support of certain people who acted as guides, along theway.I express my deepest and most sincere thanks to my Project Guide “Mr. S.K. Maheswari‖Recruitment and Export Manager of Akbar Corporation Limited Moradabad. Afterinteracting with him, I learnt few tricks of professional management and I am sure theknowledge imbibed here will go a long way in enriching my career. I express my thanks tomy Faculty Guide Ms.DEEPIKA DHAL. The project could not be completed without hisable support and guidance.I take this opportunity to thank all senior executives and every associate of ACL without theircooperation I would not have been able to complete this project. 5 Page 5
    • PREFACEMaster of business Administration is a course, which combines both theory and itsapplications as its contents of study in the field of management. As part and parcel of thiscourse, every aspirant has to undergo an ‗in – company training‘ in an organization. Thepurpose of this training is to expose the student of management sciences with real lifesituations existing in the organization and to provide an insight into the various functions whocan visualize things what they have been taught in classrooms. Actually, it is the life force ofmanagement. It is in practical training that the effectiveness of management itself is realized.I was fortunate enough to do my project in ―AKBAR CORPORATION LTD‖.As a complementary to training, every trainee has to prepare and submit a report on theworking of the organization. This report is in continuation of that tradition. When I went fortraining in ACL MORADABAD. And I convert my theoretical knowledge into practicalknowledge. I got lot of knowledge about my topic and I studied on project. It is an attempt topresent an account of practical knowledge and observations gathered during the training. 6 Page 6
    • EXECUTIVE SUMMARYTo study my topic on export procedure in international market atAKBAR CORPORATION LIMITED MORADABAD.Market scheme on sales are an important aspect of marketing. Organization followed thedifferent market scheme on sales in order to boost the sales volume.On 14th of June I started my project under the guidance of Mr.S.K.Maheshwari Exportmanager and Mr.Naushad Ali finance manager and Accountant in dipty gunj Moradabad. Ihave been allocated many work in organization like as export procedure and what importmaterial for product.Market Area of export:  Hong Kong,  Korea,  Western Europe,  South America  Middle East  And worldwide 7 Page 7
    • TABEL OF CONTENTS-: INTRODUCTION OF AKBAR CORPORATION LTD. (ACL) MANEGMENT OF COMPANY BOARD OF DIRECTOR HIERARCHY OF THE COMPANY QULITY POLICIES OF COMPANY EXPORT ORIENTED UNIT STATUS OF THE COMPANY COMPANY REGISTRATION WITH EXPORT PROMOTION COUNCIL OF INDIA QUALITY CERTIFICATE (ISO-9001 - 2000) GREEN CARD HOLDER IMPORT /EXPORT CODE (IEC) LETTER OF PERMISSION (LOP) BOND-17 EXPORT OBLIGATION FOREIGN TRADE POLICY BANKERS OF THE COMPANY DOCUMENTATION PAYMENTS TERMS FORM FOR MAKING OUTWORD FOREIGN REMITTANCE MAJOR EXPORT MARKET OF ACL HOW TO EXPORT IN INTERNATIONAL MARKET PRELIMINARIES STARTING EXPORT BUSINESS CONCLUSION BIBLIOGRAPHY REFERENCES 8 Page 8
    • INTRODUCTIONOur approach:Since the Akbar Corporation Ltd was established, it has been the objective of all theACL staff to provide the finest furniture in the market both in terms of design and quality.We sought to combine contemporary design and modern day production techniques withthe furniture making skills of our craftsmen. Our constant aim is to understand themarkets in which we operate and to provide the services to support our clients. Innovationand expertise are at the heart of Akbar Corporation Ltd.Quality: We build on quality through excellence in design and attention to detail inmanufacturing. Our quality extends to every part of every piece. Quality is controlled atevery stage, right from the purchases, storage, cutting, manufacturing, finishing andpackaging.We unite our expertise with our highly skilled traditional craftsmen and the finesthardwoods to produce a collection of handcrafted contemporary classics that will last forgenerations.One can discover endless outlets for self-expression in our collection. We combineunderstated elegance with high standards of finish and comfort.Material:We have a deep affinity for solid wood. We enjoy working with a material featuringsensuous highlights, such as grain and a variety of colors, which instills our furniture with 9inherent individuality. Every piece made by us is available in European oak, Rock maple Pageand Indian rosewood. 9
    • We have experts to select and buy quality raw material. It is our companys policy toensure that all wood used in the production of our furniture is sourced from sustainableresources. This guarantees that both, wildlife and indeed the forest and plantationsthemselves maintain the environmental balance so important to the exporting countries.Welfare:We are also committed to looking after the welfare of our workers, all of who areprovided with new housing on our site. We have many benefit and incentive schemesavailable for our craftsmen, whose skills we consider to be our most valuable asset.Design and Development: We have regular arrangements for research and development of designs and material.Well- known international designers design our furniture and all our designs arecopyrighted.Machinery & Technical Development: The Company is equipped with all the best German machines, for the production. We useour skills in amelioration with the technical German collaboration and hence manufacturethe furniture, which, stands out from the crowd with an understated and relaxed sense ofstyle.Unique Appeal: When we bring together our straightforward approach to design with a material thatgives every piece a singular character, our furniture displays a unique and unrivalledappeal." Our commitment to quality and enthusiasm for learning and teaching new skills iswithout compromise. The care with which design innovation and manufacturing expertiseare combined in the companys operations and philosophy make it unique and a pleasureto work with "Our constant aim is to understand the markets in which we operate and to provide theservices to support our clients. Innovation and expertise are at the heart of Akbar 10Corporation Ltd. Page 10
    • We build on quality through excellence in design and attention to detail in manufacturing. Our quality extends to every part of every piece. Quality is controlled at every stage, right from the purchases, storage, cutting, manufacturing, finishing and packaging.We unite our expertise with our highly skilled traditional craftsmen and the finest hardwoodsto produce a collection of handcrafted contemporary classics that will last for generations.We have a deep affinity for solid wood. We enjoy working with a material featuring sensuoushighlights, such as grain and a variety of colors, which instills our furniture with inherentindividuality. Every piece made by us is available in European oak, Rock maple and Indianrosewood.We have experts to select and buy quality raw material. It is our companys policy to ensurethat all wood used in the production of our furniture is sourced from sustainable resources. 11 Page 11
    • MANAGEMENT OF THE COMPANY-Company is working under the dynamic leadership of Mr. Akbar Qayyum, Chairman &Managing Director. Mr. Akbar Qayyum is having experience of around 30 years ininternational business and one of the pioneer in the field of export from Moradabad.Day to day functions have been taken care by his son and Director of the Company Mr.Adnan Akbar Qayyum who is possessing professional qualification from North CarolinaUniversity, U.S.A.Company is having well qualified senior management team, consists of Export Manager,Finance Manager, HRD Manager, Purchase Manager etc. 12 Page 12
    • BOARD OF DIRECTORSThere are three board of director in Akbar Corporation Limited.  Mr Akbar Quayyum  Mrs Afsari Quayyum  Mr Adnan Quayyum HIERARCHY OF THE COMPANY MD/DIRECTOR PRODUCTION MANAGER MARKETING MANAGER FINANCE MANAGER SUPERVISOR EXPORT/IMPORT EXECUTIVE ACCOUNTANT FOREMANSKILL WR UNSKILL WR 13 Page 13
    • QUALITY POLICIES OF THE COMPANY-ACL is leading player in international market and for last three decades company is survivingonly on the base of its quality. Company always give emphasis on quality parameters.Company is having three tier quality checks for its products: 1. As soon as company received raw material in unfinished shapes, their quality controller check each and every piece for the level, leakage etc. 2. As soon as the goods reach in the finishing section a different quality controller again check all the possible defects in the products 3. After finishing and before packing each and every piece has been checked under the supervision of Quality Manager. 14 Page 14
    • Akbar Corporation Ltd., (100% E.O.U.)EXPORT ORIENTED UNITS -The Export Oriented Units (EOUs) scheme, introduced in early 1981, is complementary tothe SEZ scheme. It adopts the same production regime but offers a wide option in locationswith reference to factors like source of raw materials, ports of export, hinterland facilities,availability of technological skills, existence of an industrial base and the need for a largerarea of land for the project. As on 31st December 2005, 1924 units are in operation under theEOU scheme.Objectives of the Export oriented unit:The main objectives of the EOU scheme is to increase exports, earn foreign exchange to thecountry, transfer of latest technologies stimulate direct foreign investment and to generateadditional employment.Major Sectors in EOUs:  GRANITE  TEXTILES / GARMENTS  FOOD PROCESSING  CHEMICALS  COMPUTER SOFTWARE  COFFEE  PHARMACEUTICALS  GEM & JEWELLERY  ENGINEERING GOODS  ELECTRICAL & ELECTRONICS  AQUA & PEARL CULTURE  HANDICRAFT  15 Page 15
    • Export from EOUExports from EOUs during 2004-2005 were of the order of Rs.36806.17 crores as comparedto the export of Rs.28827.58 crores achieved during 2003-2004, registering a growth of27.68%.EOU ActivitiesInitially, EOUs were mainly concentrated in Textiles and Yarn, Food Processing, Electronics,Chemicals, Plastics, Granites and Minerals/Ores. But now a day, EOU has extended it area ofwork which includes functions like manufacturing, servicing, development of software,trading, repair, remaking, reconditioning, re-engineering including making ofgold/silver/platinum jewellery and articles thereof, agriculture including agro-processing,aquaculture, animal husbandry, bio-technology, floriculture, horticulture, pisiculture,viticulture, poultry, sericulture and granites.Need for Special LicenseTo set up an EOU for the following sectors, an EOU owner needs a special license.  Arms and ammunition,  Explosives and allied items of defense equipment,  Defense aircraft and warships,  Atomic substances,  Narcotics and psychotropic substances and hazardous chemicals,  Distillation and brewing of alcoholic drinks,  Cigarettes/cigars and manufactured tobacco substitutes.In the above mention cases, EOU owner are required to submit the application form to theDevelopment Commissioner who will then put them up to the Board of Approvals (BOA). 16 Page 16
    • Choosing the Location for EOU-EOUs can be set up anywhere in the country and may be engaged in the manufacture andproduction of software, floriculture, horticulture, agriculture, aquaculture, animal husbandry,pisciculture, poultry, handicraft and sericulture or other similar activities.However, it should be noted that in case of large cities where the population is more than onemillion, such as Bangalore and Cochin, the proposed location should be at least 25 km awayfrom the Standard Urban Area limits of that city unless, it is to be located in an areadesignated as an "industrial area" before the 25th July, 1991. Non-polluting EOUs such aselectronics, computer software and printing are exempt from such restriction while choosingthe area.Apart from local zonal office and state government, setting up of an EOU is also strictlyguided by the environmental rules and regulations. Therefore, an even if the EOU unit hasfulfilled all locational policy but not suitable from environmental point of view then theMinistry of Environment, Government of India has right to cancel the proposal. In suchsituation industrialist would be required to abide by that decision.EOU Unit Obligations:The EOUs are required to achieve POSITIVE NFE (Net Foreign Exchange Earning). Forexample if unit import of Rs.100 it should export for Rs.101.Bonding Period of EOUThe EOUs are licensed to manufacture goods within the bonded time period for the purposeof export. As per the Exim Policy, the period of bonding is initially for five years, which isextendable to another five years by the Development Commissioner. 17 Page 17
    • COMPANY REGISTRATION WITH EXPORT PROMOTION COUNCIL OF INDIA-All the units which are engaged in export should be registed with respective ExportPromotion Councils. Likewise, Akbar Corporation Ltd., is registered with Export PromotionCouncil of Handicrafts (EPCH).EPCH is work under Development Commissioner of Handicraft, Government of India.COMPANY CERTIFICATE(ISO-9001 - 2000)-  Set of international standards on quality management and quality assurance, critical to international business .  ISO 9001 is a family of standards for quality management systems.GREEN CARD HOLDER-To promote EOU, Government of India is issuing Green Card to all the EOU. The benefietsof the Green Card is that EOU gets special treatement in all the government offices in whichit requires permissions. 18 Page 18
    • IMPORT EXPORT CODE (IEC) ISSUED BY DGFT-Directorate General of Foreign Trade, which is headed by the Director General of ForeignTrade. The office of the DGFT is responsible for formulating and execution of Foreign TradePolicy, including licensing. Till 1991, was known as the Chief Controller of Imports &Exports (CCI&E).DGFT is responsible for implementing the Foreign Trade Policy or Exim Policy with themain objective of promoting exports. To regulate and keep check on international trade,DGFT issue IEC. An IEC holder can only do the interntional trade.IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade ,Ministry of Commerce, Government of India to Indian Companies.IEC Code No Notification:Directorate General of Foreign Trade(DGFT) issued a Policy Circular No.15 (RE-2006)/2004-2009 Date: 27th July, 2006) for New System for issuance of Importer-ExporterCode Number.Eligibility, Legal Provisions and Conditions for IEC Code NumberEligibility condition and Legal Provisions are given for IEC Code Number Application inForeign Trade (Regulation) Rules, 1993 Ministry of Commerce, Notification No. GSR 791(E), dated 30-12-1993.Application for Grant of IEC NumberAn application for grant of IEC number shall be made by the Registered/Head Office of theapplicant and apply to the nearest Regional Authority of Directorate General Foreign Trade,the Registered office in case of company and Head office in case of others, falls in the‗Aayaat Niryaat Form - ANF2A‘ and shall be accompanied by documents prescribed therein.In case of STPI/ EHTP/ BTP units, the Regional Offices of the DGFT having jurisdiction 19over the district in which the Registered/ Head Office of the STPI unit is located shall issue Pageor amend the IECs. 19
    • Only one IEC would be issued against a single PAN number. Any proprietor can have onlyone IEC number and in case there are more than one IECs allotted to a proprietor, the samemay be surrendered to the Regional Office for cancellation.LETTER OF PERMISSION (LOP)Letter of permission issued by the Development Commissioner of NSEZ to the unit is itself alicence. EOU get detail of business which unit can undertake in LOP. Based on the itemscovered under the LOP, unit can procure duty free imported and indigenous machinery andraw material. LOP may also be used for the procurement of the items like furnace oil fromauthorized oil companies since this is otherwise a canalised item and cannot be directlyimported by the export oriented units. Besides the import of capital goods is permitted on thebasis of self declaration by the unit, regarding the description, quantity and value of thegoods. 20 Page 20
    • BOND 17-All the Export Oriented Units in India need to conduct its operations under the supervision ofthe Customs and Central Excise Department. For this purpose, EOU has to sign amultipurpose bond with the jurisdictional Deputy Commissioner of Customs and CentralExcise at the time of commencement of the unit. The bond is submitted in a prescribe formatalong with the copy of EOU project report and Letter Of Proposal (LOP) to the DeputyCommissioner‘s Office in the zone. Apart from these documents, EOU also need to submit aworksheet authenticated by the authorized signatory showing the details of imported /indigenous material covered by the Bond.B-17 Bond Format is prescribed vide notification No. 6/98-CE (NT) dated 2-3-1998. The B-17 Bond covers different types of activities that includes transshipment of import /exportgoods between port of import/export and units premises; duty-free import/procurement fromthe original sources as per relevant notification and warehousing/storage in the unit;movement of duty-free goods for job work and return; temporary clearance for repair anddisplay in exhibitions, testing/approvals etc.; and movement of goods against AR-4, AR-3Aand CT-3 etc. and transfer from one warehouse to another. However, B-17 Bond does notcover the differential duty amount against advance DTA sale.The B-17 Bond is taken for an amount equal to 25% of the duty forgone on the sanctionedrequirement of capital goods plus the duty forgone on raw materials required for 3 months.Surety or security equivalent 5% of the bond amount in the form of bank guarantee isrequired to be given by the EOUs.B-17 Bond FormatOn Rs.100/- Stamps Bond PaperForm B-17 (General Surety / Security 21 Page 21
    • FOREIGN TRADE POLICIES-The UPA Government has assumed office at a challenging time when the entire world isfacing an unprecedented economic slow-down. The year 2009 is witnessing one of the mostsevere global recessions in the post-war period. Countries across the world have beenaffected in varying degrees and all major economic indicators of industrial production, trade,capital flows, unemployment, per capita investment and consumption have taken a hit. TheWTO estimates project a grim forecast that global trade is likely to decline by 9% in volumeterms and the IMF estimates project a decline of over 11%. The recessionary trend has hugesocial implications. The World Bank estimate suggests that 53 million more people wouldfall into the poverty net this year and over a billion people would go chronically hungry.Though India has not been affected to the same extent as other economies of the world, yetour exports have suffered a decline in the last 10 months due to a contraction in demand inthe traditional markets of our exports. The protectionist measures being adopted by some ofthese countries have aggravated the problem. After four clear quarters of recession there issome sign of a turnaround and the emergence of ‗green shoots‘, though I would be hesitant tohazard a guess on the nature and extent of this recovery and the time the major economieswill take to return to their pre-recession growth levels. Announcing a Foreign Trade Policy inthis economic climate is indeed a daunting task. We cannot remain oblivious to decliningdemand in the developed world and we need to set in motion strategies and policy measureswhich will catalyse the growth of exports. 22 Page 22
    • HIGHLIGHTS OF FOREIGN TRADE POLICY 2009-2014Higher Support for Market and Product Diversification1. Incentive schemes under Chapter 3 have been expanded by way of addition of newproducts and markets.2. 26 new markets have been added under Focus Market Scheme. These include 16 newmarkets in Latin America and 10 in Asia-Oceania.3. The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to3%.4. The incentive available under Focus Product Scheme (FPS) has been raised from 1.25% to2%.5. MLFPS benefits also extended for export to additional new markets for certain products.These products include auto components, motor cars, bicycle and its parts, and apparelsamong others.6. A common simplified application form has been introduced for taking benefits under FPS,FMS, MLFPS and VKGUY.7. Higher allocation for Market Development Assistance (MDA) and Market AccessInitiative (MAI) schemes is being provided. 23 Page 23
    • BANKER OF THE COMPANY-  Company is banking with  Indian Overseas |Bank  MoradabadDOCUMENTATION-DGFT has made a uniform format of documentation which is being used ininternational business. In the prescribed format company issueInvoicePacking List 24 Page 24
    • PAYMENT TERMS-  LC-Letter of credit  DP-Documents againts payment  TT-Telegraphic/talaxCAPITAL STRUCTURE OF ACLAKBAR CORPARATION LIMITED is private limited Company and its capitalstructure totally own share its mean equity share company and details given below-SHARE HOLDER- 7 CROREBANK LIMIT FOR RAISING FUND- 1 CROREASSETS-FIXED ASSETS- 5 CRORECURRENT ASSETS- 3.5 CRORELIABILITY-CURRENT LIABILITY- .25 CRORE 25 Page 25
    • FORM FOR MAKING OUTWARD FOREIGNREMITTANCE-Recently RBI has made amendment in its polices. Now every exporter needs to fill onlineForm 15AB and after submitting the same to RBI, RBI give online registration number. TheForm 15AB will go to Bank along with all other required documents like invoice etc. Andbased on that bank will transfer the payment to overseas supplier.Major Export Market of ACL:  Central & South America  Eastern Europe  Hong Kong  Korea  Middle East  Western Europe  Worldwide 26 Page 26
    • HOW TO EXPORT IN INTERNATIONAL MARKET:  GOLDEN RULE  SELL EXPERIENCE  SELLING IN EXPORT  ON TIME DELIVERIES  COMMUNICATION  TESTING PRODUCTS  APPROACHGolden Rule:In order to be successful in exporting one must fully research its markets. No one should ever try totackle every market at once. Many enthusiastic persons bitten by the export bug, fail because they biteoff more than they can chew. Overseas design and product requirements must be carefully considered.Always sell as close to the market as possible. The fewer intermediaries one has the better, becauseevery intermediary needs some percentage for his share in his business, which means less profit forthe exporter and higher prices for the customer. All goods for export must be efficiently produced.They must be produced with due regard to the needs of export markets. It is no use trying to sellwindows which open outwards in a country where, traditionally, windows open inwards.Sell Experience:If a person cannot easily export his goods, may be he can sell his experience. Alternatively, he canconcentrate on supplying goods and materials to exporters who already have established an exporttrade. He can concentrate on making what are termed own brand products, much demanded bybuyers in overseas markets which have the manufacturing know-how or facilities.Selling in Export:In todays competitive world, everyone has to be sold. The customer always has a choice of suppliers.Selling is an honorable profession, and you have to be an expert salesman. 27On-Time Deliveries: Page 27
    • Late deliveries are not always an exporters fault. Dock strikes, go-slows, etc. occur almosteverywhere in the world. If one enters into export for the first time, he must ensure of fast andefficient delivery of the promised consignment.Communication:Communication internal and external must be comprehensive and immediate. Good communicationis vital in export. When you are in doubt, pick up the phone or email for immediate clarification.Testing Product:The risk of failure in export markets can be minimized by intelligent use of research. Beforecommitting to a large-scale operation overseas, try out on a small scale. Use the a sample test, and anymistakes can then be corrected without much harm having been doneApproach:If possible some indication of the attitudes towards the product should be established, like any salesoperation. Even if the product is successful, to obtain reactions from the customer. 28 Page 28
    • PRELIMINARIES FOR STARTING EXPORTBUSINESS:  SETTING UP A N APPROPRIATE BUSINESS ORGANIZATION  CHOOSING APPOPRIATE MODE FO ACTION  NAMING THE BUSINESS  SELECTING THE MARKETS  SELECTING PROSPECTING BUYERS  SELECTING CHANNELS OF DISTRIBUTION  NEGOTIATION WITH PROSPECTIVE BUYERS  PROCESSING AN EXPORT ORDER  ENTERING INTO EXPORT CONTRACT  EXPORT PRICING AND COSTING  UNDERSTANDING RISK IN INTERNATIONAL TRADESetting up an appropriate business organizationThe first and the foremost question you as a prospective exporter has to decide is about the kind ofbusiness organisation needed for the purpose. You have to take a crucial decision as to whether abusiness will be run as a sole proprietary concern or a partnership firm or a company. The properselection of organisation will depend upon  Your ability to raise finance  Your capacity to bear the risk  Your desire to exercise control over the business  Nature of regulatory framework applicable to you 29Exporters Manual and Documentation Page 29
    • Company is another form of business organisation,which has the advantage of distinct legal identityand limited liability to the shareholders. It can be a private limited company or a public limitedcompany. A private limited company can be formed by just two persons subscribing to its sharecapital. However, the number of its shareholders cannot exceed fifty, public cannot be invited tosubscribe to its capital and the members right to transfer shares is restricted. On the other hand, apublic limited company has a minimum of seven membersChoosing appropriate mode of operationYou can chose any of the following modes of operations:Merchant Exporter i.e. buying the goods from the market or from a manufacturer and thenselling them to foreign buyers.Manufacturer Exporter i.e. manufacturing the goods yourself for export SalesAgent/Commission Agent/Indenting Agent i.e. acting on behalf of the seller and chargingcommission Buying Agent i.e. acting on behalf of the buyer and charging commissionNaming the BusinessWhatever form of business organisation has been finally decided, naming the business is anessential task for every exporter. The name and style should be attractive, short andmeaningful. Simple and attractive name indicating the nature of business is ideal. The officeshould be located preferably in a commercial complex, in clean and workable surroundings.The letter head should be simple and superb providing information concerning H.O.,branches, cable address, telephone number, fax number, bankers name and address etc. Pickup a beautiful trade name and logo which reinforces your organisations name and image.Selecting the CompanyCarefully select the product to be exported. For proper selection of product, study the trendsof export of different items from India. The selected product must be in demand in thecountries where it is to be exported. It should be possible to procure or manufacture theselected product at most economic cost so that it can be competitively priced. It should alsobe available in sufficient quantity and it should be possible to supply it repeatedly andregularly 30 PageSelecting the markets 30
    • Target markets should be selected after careful consideration of various factors like politicalembargo, scope of exporters selected product, demand stability, preferential treatment toproducts from developing countries, market penetration by competitive countries andproducts, distance of potential market, transport problems, language problems, tariff and non-tariff barriers, distribution infrastructure, size of demand in the market, expected life span ofmarket and product requirements, sales and distribution channels. For this purpose youshould collect adequate market information before selecting one or more target markets. Theinformation can be collected from various sources like Export Promotion Council(EPCs)/Commodity Boards, Federation of Indian Export Organisation, (FIEO), IndianInstitute of Foreign Trade (IIFT), Indian Trade Promotion Organisation (ITPO), IndianEmbassies Abroad, Foreign Embassies in India, Import Promotion Institutions Abroad,Overseas Chambers of Commerce and Industries, Various Directories, Journals, MarketSurvey Reports.Selecting prospective BuyersYou can collect addresses of the prospective buyers of the commodity from the followingsources:Enquiries from friends and relatives or other acquaintances residing in foreign countries.Visiting/ participating in International Trade Fairs and Exhibitions in India and abroad.Contact with the Export Promotion Councils, Commodity Boards and other GovernmentAgencies.Selecting channels of distributionThe following channels of distribution are generally utilised while exporting to overseasmarkets :  Exports through Export Consortia  Export through Canalising Agencies  Export through Other Established Merchant Exporters or Export Houses, or Trading Houses  Direct Exports 31  Export through Overseas Sales Agencies Page 31
    • Negotiating with Prospective BuyersWhatever the channel of distribution for exporting to the overseas countries is proposed to beis utilized, it is essential that the exporters should possess the necessary skill for negotiatingwith the overseas channels of distribution. The ability to negatiate effectively is needed fordiscussion with importers or trade agents. While conducting business negotiations, theprospective exporter should avoid conflict, controversy and criticism vis-`-vis the other party.During conversation the attitude should be to communicate effectivelyProcessing an Export orderYou should not be happy merely on receiving an export order. You should first acknowledgethe export order, and then proceed to examine carefully in respect of items, specification,preshipment inspection, payment conditions, special packaging, labeling and marketingrequirements, shipment and delivery date, marine insurance, documentation etc. if you aresatisfied on these aspects, a formal confirmation should be sent to the buyer, otherwiseclarification should be sought from the buyer before confirming the order. After confirmationof the export order immediate steps should be taken for procurement/manufacture of theexport goodsEntering into an Export contractIn order to avoid disputes, it is necessary to enter into an export contract with the overseasbuyer. For this purpose, export contract should be carefully drafted incorporatingcomprehensive but in precise terms, all relevant and important conditions of the trade deal.The different aspects of an export contract are enumerated as under :  Product, Standards and Specifications  Quantity  Inspection  Total Value of Contract  Terms of Delivery 32  Taxes, Duties and Charges  Period of Delivery/Shipment Page 32
    •  Packing, Labeling and Marking  Terms of Payment-- Amount/Mode & Currency  Discounts and Commissions  Licenses and Permits  Insurance  Documentary Requirements  Guarantee  Force Majeure of Excuse for Non-performance of contract  RemediesExport Pricing and CostingExport pricing should be differentiated from export costing. Price is what we offer to thecustomer.Cost is the price that we pay/incur for the product. Price includes our profit margin,cost includes only expenses we have incurred. Export pricing is the most important tool forpromoting sales and facing international competition. The price has to be realistically workedout taking into consideration all export benefits and expenses. However, there is no fixedformula for successful export pricing. It will differ from exporter to exporter depending uponwhether the exporter is a merchant exporter or a manufacturer exporter or exporting through acanalising agency. You should also assess the strength of your competitor and anticipate themove of the competitor in the market. Pricing strategies will depend on various circumstantialsituations. You can still be competitive with higher prices but with better delivery package orother advantagesYour prices will be determined by the following factors: 33  Range of products offered Page 33
    •  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 itemsUnderstanding risks in International tradeWhile selling abroad, you may undergo the following risks:  Credit risk  Currency risk  Carriage risk  Country riskThese risks can be insured to a great extent by taking appropriate steps. Credit risk against thebuyer can be covered by insisting upon an irrevocable letter of credit from the overseasbuyer. An appropriate policy from Export Credit and Guarantee Corporation of India Ltd. canalso be obtained for this purpose. Country risks are also covered by the ECGC. As regardscurrency risk, i.e. possible loss due to adverse fluctuation in exchange rate, You should obtainforward cover from your bank authorised to deal in foreign exchange.RegistrationRegistration with Reserve Bank Of India: No longer required. Prior to 1.1.1997 it wascompulsory for every exporter to obtain an exporters code number from the Reserve Bank ofIndia before engaging in export. This has since been dispensed with and registration with the 34licensing authorities is sufficient before commencing export or import. Page 34
    • Registration with Regional Licensing: Authorities (obtaining IEC Code Number) TheCustoms Authorities will not allow you to import or export goods into or from India unlessyou hold a valid IEC number.PRODUCT OF THE ACL:Product/Service Decorative Accessories of Brass, Garden Accessories, Handicrafts,Range: Lighting, General House Ware, Wrought Iron Furniture & Gift ItemsPRODUCTS IMAGE- Silver-Plated Aluminum Vase Aluminum Vase Aluminum Decoration Aluminum Fruit Bowl 35 Page 35
    • WOODEN CANDLE 36 Page 36
    • METAL CANDLE 37 Page 37
    • IRON CANDLE 38 Page 38
    • TIMBER INFO-(USE IN ACL) Hardwood may no longer account for the majority of todays furniture, but it will always be special, the material of choice for discerning customers and uncompromising manufacturers. The character, warmth and beauty bestowed by its grain, combined with the inherent strength and texture given by its form, renders hardwood unique. Our furniture is a showcase for the outstanding qualities of solid wood. We use only hardwoods for our furniture essentially including the Indian Rosewood, European Oak and the Hard Maple. The European Oak (Quercus Robur) is a hardwood usually straight and long grained in trees cut from large stands. Quarter sawn European Oak tends to have a silvery grain structure. The woods texture is coarse and characterized by open pores. Wood harvested 39 from the northern areas of the species distribution zone tends to be denser and tougher. Page 39
    • The wood from the central regions is less denser and more straighter and uniform.The colors of the wood vary from light brown to a dark tan. Sapwood and heartwoodhave similar colors and grain patterns. Sapwood tends to be lighter in color. The woodhas a very good steam bending classification. It dries very slowly. A yellow stain thateventually disappears is common during drying. The wood takes liming, waxing andpolishing treatments very well. The heartwood is durable and is extremely resistant topreservative treatment.The European oak is ideal for boat building, high-class joinery, flooring, furniture and issliced for decorative veneers.The hard Maple (Acer Saccharum) is a hardwood. The sapwood is creamy white with aslight reddish brown tinge and the heartwood varies from light to dark reddish brown.The amount of darker brown heartwood can vary significantly according to growingregion. Both sapwood and heartwood can contain pith fleck. The wood has a close finetexture and is generally straight grained, but it can also occur as "curly", "fiddleback",and "birds-eye" figure. The superior working characteristics make maple an exceptional 40furniture wood. With care it machines well, turns well, glues satisfactorily, and can be Page 40
    • stained and polished to an outstanding finish. The wood is hard and heavy with goodstrength properties, in particular its high resistance to abrasion and wear. It also has goodsteam bending properties. The timber dries slowly with undue difficulty. It is excellentfor flooring, furniture, paneling, kitchen cabinets, worktops and table tops, interiorjoinery, stairs, handrails, moldings, and doors.The Indian Rosewood (Dalbergia latifolia) is a hardwood with a narrow interlockeduniform grain, with a moderately coarse texture, and low luster. The colors of theheartwood vary from a golden brown to a dark purple brown with darker streaks givingthe wood a very intense and interesting pattern. This wood is heavy, hard and dense withhigh bending and crushing strengths, medium shock resistance, good stability, excellentsteam bending characteristics and a very durable heartwood. The timber seasons welland dries defect free in log form. The color of the wood improves during the dryingprocess and the end product takes an excellent finish.The grain requires filling to achieve a high polish. It responds well to a wax polish.Indian Rosewood is ideal for fine furniture and cabinetwork, turnery, decorative veneersand specialty items. 41 Page 41
    • CONCLUSIONAkbar Corporation limited is good position in this period and good running in the exportsector. It makes many types of product like as totally handicraft product.No sell in India onlyexport out of country.It is Handicraft product manufacturing company.Its export manager isvery good person and have lot of experience in export field.I got lot of knowledge about export procedure and how to manage in OrganizationMr Akbar Qayyum has 32 years experience in export field. 42 Page 42
    • BIBLIOGRAPHY:http//:wwwakbardesign.comhttp//:www.hktdc.com/sourcing/productshttp//:www.indiandata.com/trade_policytext book:export oriented unit and sez unitREFERENCES: http://www.clickz.com/stats/sectors/export/article.php/ http://www.esearch.com/currentstudies/3qsummary99.htm http//:www.sharekhan.com http//:www.paisabuilder.com http//:www.akbarbrassproduct.com 43 Page 43
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