It is a comprehensive presentation on foreign trade starting from what is export to how to take post export incentive benefits and how to operate export firm, market, and product strategy, sell contract, risk management, policy provisions, different export promotion schemes, etc.

1. International Trade : Policy perspective &
Start up Strategy
Presented By
Dr. Ashis
Dash,
1

2. A. WHAT IS EXPORT
Foreign Trade(Development & Regulation)Act, 1992 ,
22 of 1992 7th August 1992, Chapter-1(2e)
“import” and “export” means,-
(I)in relation to goods, bringing into, or taking out of , India any good by land, sea or air;
(II) in relation to service or technology-
(i) supplying, services or technology
(A)from the territory of another country into the territory of India;
(B)in the territory of another country to an Indian service consumer;
(C) by a service supplier of another country, through commercial presence in India;
(D)by a service supplier of another country, through presence of their natural person in India
(ii) supplying services or technology-
(A)from India into the territory of another country;
(B)in India to the service consumer of any other country;
(C) by a service supplier of India, through commercial presence in the territory of any other
country
(D) ) by a service supplier of India, through presence of Indian natural persons in the territory of
any other country
Provided that “import” and “export” in relation to the goods, services and technology regarding
Special Economic Zone or between two Special Economic Zones shall be governed in
accordance with the provisions contained in the Special Economic Zone Act,2005(28 of 2005;)
2

3. B.ATTRIBUTE ANALYSIS OF SUCCESSFUL EXPORTER
Successful
Exporter
Knowledge
Implementation
Attitude
3

4. C. DOGMAS & REALITY IN EXPORT BUSINESS
Education
Language
Capital
4

5. D. INSTITUTIONS/AGENCY MANAGEMENT
CENTRAL BOARD OF DIRECT TAXATION (CBDT)
CENTRAL BOARD OF EXCISE AND CUSTOMS (CBEC)
DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)
EXPORT PROMOTION COUNCILS(EPCs)/Commodity Board
EXPORT INSPECTION COUNCIL/AGENCY (EIC/EIA)
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD.(ECGC)
Chamber of Commerce
Financial Institutions (Bank, Exim Bank)
Logistics: Freight Forwarders/Shipping Lines ,Third Party Logistics
Registrar of Company
District Industrial Centre & Other State Govt Agencies
Data Base: IIFT/DGCIS/MoC/CBEC/
5

6. E. RELATION MANAGEMENT
Employee
Agent
CA
CE
Advocate
Custom House Agent
Logistics
Consultant
6

7. F. STRENGTHENING BUSINESS: AVAILING GOVERNMENT SCHEMES
DGFT (Incentives: MEIS, SEIS, Advance Authorization, DFIA,EPCG,
Deemed Export Benefits, Status Certificate,TMA,RoSCTL)
CBEC: Drawback, GST Refund
Ministry of MSME/Industry/Concerned Ministry
State Government
7

8. G. SETTING EXPORT BUSINESS
1.Mode of Operation
2. Naming the Business
3.Business Correspondence
4.Arranging Start Up Documents viz. PAN, Bank Account, IEC,RCMC etc.
5. Selection of Product
6. Selecting Market& Finding Prospective Buyer
7.Pricing & Costing
8.Sampling
9.Negotiation with prospective Buyer
10.Processing Export Order
8

9. 1. MODE OF OPERATION:
Types of
Concern
Types of
Activity
• Proprietory
concern
• Partnership
Firm
• Company
• Merchant,
• Manufacturing,
• Service
• Mix
9

10. 2. NAMING THE BUSINESS:
Short, Attractive, Meaningful
Reflecting Product & Origin
Suffix: International, Overseas
10

11. 3. BUSINESS CORRESPONDENCE:
Letterhead
Phone
Fax
Website
Catalogue
Introductory
Letter
11

12. 4. ARRANGING START UP DOCUMENTS
PAN BANK
ACCOUNT
IEC RCMC
12

13. 5. SELECTION OF PRODUCT
Considerations
Trend of export
Demand-Supply Analysis
Economical procuring/manufacturing
Quality Standard
Policy &Regulations of the(Importing & Exporting) Governments
Incentives & Schemes of Promotion of the products
Knowledge(technical if any)& Experience
Distinct advantage-Price, quality, after sale service
Culture, habit and occasions
Duty Structure/Tariff/Non-tariff barriers
Mode of shipment
13

14. HS Code- Harmonised System Code
• "Harmonized System" or simply "HS" is a multipurpose international product nomenclature developed by
the World Customs Organization (WCO).
• Comprises about 5,000 commodity groups; each identified by a six digit code,
• Over 98 % of the merchandise in international trade is classified in terms of the HS.
• Countries have further classified merchandise beyond 6 digit levels. E.g. India has 8 digit HS codes.
• Contributes to the harmonization of Customs and trade procedures.
• Commodities are identified by HS codes.
• Attempts for more specification of products under “ Other” Trade Notice No 47 Dated 29th January 2020
Three type of items: Free, Prohibitive, Restrictive
1. Free: without any restriction, no license, no certificate
2. Prohibitive: Total ban
3. Restrictive: under specific condition
Go to dgft.gov.in Export policy
http://dgft.gov.in/Exim/2000/NOT/itc(hs)/Eschedule2.pdf
Import Policy
http://dgftcom.nic.in/Exim/2000/DN/ftpdnl/regrla/ITc-Ipol-2012.rar
14

15. • Prohibited
(The prohibited items are not permitted to be exported. An export
licence will not be given in the normal course for goods in the
prohibited category.
• Restricted
(The restricted items can be permitted for export under licence. The
procedures / conditionality wherever specified against the
restricted items may be required to be complied with, in addition
to the general requirement of licence in all cases of restricted
items.)
• State Trading Enterprises
Export through STE(s) is permitted without an Export Licence through
designated STEs only as mentioned against an item and is subject
to conditions in para 2.11 of Foreign Trade Policy 2009-14.
• Restriction on Countries of Export
(Particular Product to particular Country eg. Export of Arms and
related material to Iraq shall be prohibited. ) 15

16. Chapters of HS Code
01-05 Animal & Animal Products
06-15 Vegetable Products
16-24 Foodstuffs
25-27 Mineral Products
28-38 Chemicals & Allied Industries
39-40 Plastics / Rubbers
41-43 Raw Hides, Skins, Leather, & Furs
44-49 Wood & Wood Products
50-63 Textiles
64-67 Footwear / Headgear
68-71 Stone / Glass
72-83 Metals
84-85 Machinery / Electrical
86-89 Transportation
90-99 Miscellaneous
16

17. 17

18. 18

19. 6. SELECTING MARKET & FINDING PROSPECTIVE BUYER
Selecting Market &
Finding Prospective
Buyer
A.
Market Information
Sources
B.
Factors of
Considerations for
selecting Market 19

20. Market Information Sources
Export Promotion Councils/Commodity Boards(Visits, Exhibition, Trade Fair Participation)
Federation of Indian Export Organization (FIEO)
Ministry of Commerce: Trade Data
Directorate General of Commercial Intelligence and Statistics(DGCIS): Trade Data
Indian Trade Promotion Organization (ITPO),Visits, Exhibition, Trade Fair Participation
Indian Institute of Foreign trade(IIFT)
Indian Embassies and High Commissions Abroad
Chamber of Commerce & Industries
Various International Trade Directories, Journals, Market Survey Reports
Business Promotion: website
Friends/Relative/acquaintances
Participating International Trade Fairs/Exhibitions
International yellow Pages
Advertise and Marketing
Popular Websites/Export Surfing 20

21. Factors Of Considerations For Selecting Market
Economic-GDP Growth, level of Inflation, per capita income, disposable income
Political &Legal- Risk, instability, attitude towards foreigners, Political Relation with India
Fiscal-Taxes/duty structure, financial architecture, current account deficit, balance of payment, foreign
exchange reserve, interest rate, preferential treatment, and Market access issues (Quota, tariff and non tariff
barriers)
Social-People, demographics, culture, sub culture, pressure groups, interest group
Technological-Current technological stage, rate of change, available infrastructure for research and
innovation
Resources-Money, manpower, material, acquisitions, joint ventures
Institution-Capital and money markets, regulation for accessing capital
Managerial-Skilled manpower, management practices etc.
Competition-Type, structure, operations, strategy plans, programme, acquisitions, mergers 21

22. 7. PRICING & COSTING
Manufacturing Cost
Cost of Packaging
Transportation Charge
Warehousing Charges
Cost of Inspection, Measurements
Expenses in Custom & Central Excise
Loading Charges
Freight & Insurance Charges
After Sell Service
Product differentiation, Uniqueness and brand image
Frequency of Purchase
Credit offered
Aggressive marketing and sales promotion
Incoterm agreed
Risk Coverage
22

23. 8 EXPORTING SAMPLES (2.24 OF FTP & 2.65/66 OF HBP)
Import of Samples (HBP 2.65)
• No Authorisation shall be required for Import of bonafide technical and trade
samples of items restricted in ITC (HS) except vegetable seeds, bees and new
drugs. Samples of tea not exceeding Rs.2000 (CIF) in one consignment shall be
allowed without an Authorisation by any person connected with Tea industry.
• Duty free import of samples upto Rs.3,00,000 for all exporters shall be allowed as
per terms and conditions of Customs Notification.
Exports of Samples (HBP 2.66)
• Exports of bonafide trade and technical samples of freely exportable item shall be
allowed without any limit.
• An application for export of samples, which are restricted for export, may be made
to DGFT as per ANF-2Q.
23

24. 9.NEGOTIATION WITH PROSPECTIVE BUYER
Knowledge ,Attitude &Skill
Maintain 8Cs :Coherence,Creativity,Compromise,concessions,commonality,consensus,commitment,
compensation
Avoid 3 Cs: Conflict, Controversy, criticism
Price: Know the Buyer’s real interest in the product
Willingness of moderate modification/Flexibility
Specification of delivery modality: Incoterms
Delivery Schedule
Port of Shipment
Documentation
Mode of Payment/Payment term & Condition
Special packaging, leveling
Pre shipping Inspection
Export Pricing….. 24

25. 10.PROCESSING EXPORT ORDER
10.1 CONFIRMATION & EXPORT CONTRACT
10.2 PROCUREMENT OF GOOD
10.3 QUALITY CONTROL
10.4 FINANCE
10.5 LEVELLING,PACKAGING
10.6 RISK MANAGEMENT
10.7 DELIVERY
10.8 CUSTOM PROCEDURE/CHA
10.9 DOCUMENTATION
10.10 TAKING EXPORT BENIFITS
25

26. 10.1 EXPORT CONTRACT/INTERNATIONAL SELL CONTRACT
No standard Rules & Regulations with regard to International Sale Contract
Pro-forma Invoice-Exporter
Export Order-Importer
Acknowledgement-Exporter
Scrutiny(Inco term)-Negotiation-Exporter
Confirmation-Contract
Post Contract Activity
26

27. Points Of Scrutiny In Sell Contract
• Name of Seller & Buyer
• Product, Standard and Specification
• Quantity,Unit price
• Pre Export Inspection
• Total Value of the Contract
• Incoterm/Term of Delivery(2020)
• Term of Payment-Amount/Mode & Currency
• Period of Delivery/Shipment/Delivery Schedule
• Packaging, Leveling and Marking
• Discount and Commissions
• Licenses and Permits
• Insurance
• Documentary Requirements
• Guarantee
• Force Majeure of Excuse for non performance of contract
• Remedies
• Arbitration(Indian Council of Arbitration, Federation House, Tansen Marg, New
Delhi)
• Signing in each page
27

28. 10.2 PROCUREMENT OF GOOD
28

29. 10.3 QUALITY CONTROL
29

30. 10.4 FINANCE
30

31. 10.5 LEVELLING,PACKAGING & MARKING
31

32. 10.6 RISK MANAGEMENT
Credit Risk
Currency Risk
Hedging strategy:
future contract
forward contract
option contracts
swaps contracts
Carriage
Risk
(ECGC)
Country
Risk
(ECGC)
32

33. 10.7 DELIVERY
33

34. 10.8 CUSTOM CLEARANCE/ PROCEDURE
Reduction in
Mandatory
Documents
FOR EXPORT
Bill of Lading/Airway Bill
Commercial Invoice cum Packaging List
Shipping Bill/Bill of Export
Procedure for Clearance of Imports Cargo
Bill Of Entry – Cargo Declaration
Assessment of Import Cargo
EDI Assessment of Import Cargo
Examination of Import Goods
Green Channel Facility
Execution of Bonds
Payment of Duty
Amendment of Bill Of Entry
Prior Entry for Bill Of Entry
Mother Vessel/Feeder Vessel
Specialized Schemes
Bill Of Entry For Bond/Warehousing
FOR IMPORT
Bill of Lading/Airway Bill
Commercial Invoice cum Packaging List
Bill of Entry
Custom Clearance of Export Cargo
Registration
Registration In The Case of Export under
Export Promotion Schemes
Processing Of Shipping Bill - Non-EDI
Processing Of Shipping Bill under EDI
Arrival of Goods at Docks
System Appraisal of Shipping Bills
Status of Shipping Bill
Customs Examination of Export Cargo
Variation between the Declaration &
Physical Examination
Stuffing / Loading of Goods in Containers
Drawl of Samples 34

35. 10.9 DOCUMENTATION
PAN
Bank Account
IEC
RCMC
Manufacturing License
Sell Tax /Vat Registration
Central Excise Registration
Status Holders Certificate
Shipping Bill/Bill Of Export/Airways Bill
Certificate Of Origin
ISO Certification
MSME Registration 35

36. DOCUMENTATION
Inspection Certificate
Testing Certificate
Packing List
Insurance Policy
Invoice
Mate Receipt
Bill Of Entry
Bill Of Lading
Bank Realization Certificate
Landing Certificate
Certificate of Origin
Scrip/Authorization under different schemes
36

37. 10.10 TAKING EXPORT BENIFITS
37

38. UNDERSTANDING FOREIGN TRADE LAWS
FOREIGN TRADE(DEVELOPMENT AND
REGULATION) ACT,1992,
22 of 1992 7th August,1992
FOREIGN TRADE REGULATION RULES,1993
30th Dec.1993 By Central Govt. published
in the Gazette of India,Extra,30th Dec,1993
Under the provision of sec. 19 of FTDR Act
38
Dr. Ashis K. Dash , ITS
July 21

39. RELEASE OF FOREIGN TRADE POLICY 2015-2020
April1, 2015,By Government of India
39
Dr. Ashis K. Dash , ITS
July 21

40. FOREIGN TRADE POLICY 2015-20
By Notification in the Gazette of India, ,Extra under the provision of
Sec.5 of FTDR Act
40
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July 21

41. HANDBOOK OF PROCEDURES
of FTP 2015- 2020, April1 2015,
By Central Govt., By Public Notice under the provision of 1.03 of FTP,2015-20
41
Dr. Ashis K. Dash , ITS
July 21

42. APPENDICES & AAYAT NIRYAT FORMS
April1, 2015,By Central Govt., By Public Notice under the provision
of1.03 of FTP, 2015-20
42
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July 21

43. FOREIGN TRADE POLICY STATEMENT 2015
43
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44. DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)
Udyog Bhawan, H-wing, Gate No-02, Maulana Azad Road, New Delhi -110 011
EPABX No. : 011-23061562 Fax No. 011-23062225
DGFT EDI Helpdesk No: 1800111550 (Toll Free) Dial 011-23061562
44
Dr. Ashis K. Dash , ITS
25/02/2020

45. dgft.gov.in
45

46. FOREIGN TRADE POLICY 2015-20
• Legal Framework and Trade Facilitation
Chapter1
• GENERAL PROVISIONS REGARDING IMPORTS AND EXPORTS
Chapter 2
• EXPORTS FROM INDIA SCHEMES
Chapter 3
• DUTY EXEMPTION / REMISSION SCHEMES
Chapter 4
• EXPORT PROMOTION CAPITAL GOODS (EPCG)
Chapter 5
• EXPORT ORIENTED UNITS (EOUs),
• ELECTRONICS,HARDWARE TECHNOLOGY PARKS
(EHTPs),
• SOFTWARE TECHNOLOGY PARKS (STPs) AND
• BIO-TECHNOLOGY PARKS (BTPs)
Chapter 6
• DEEMED EXPORTS
Chapter 7
• QUALITY COMPLAINTS AND TRADE DISPUTES
Chapter 8
• DEFINITIONS, GLOSSARY (ACRONYMS)
Chapter 9 46
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July 21

47. Trade Facilitations
1.DIGITAL INDIA
2. SKILL INDIA
3.EASE OF DOING BUSINESS
4.ZERO DEFECT & ZERO EFFECT
5.MAKE IN INDIA
Major recent Initiatives
47

48. 1.DIGITAL INDIA (e-Governance)
Electronic Importer Exporter Code (e-IEC) (www.ebiz.gov.in)
Electronic Bank Realisation Certificate ( e-BRC)
17th Aug 2012
Mobile Application for FTP
Online Filing Application:
DGFT High Level Encrypted 2048 bit digital signature Organisation24*7 Application,
Payment by Debit/Credit Card
Digitally Signed certificate can be uploaded by CA/CS/Cost Accountant in :ANF 3B, 3C, 3D
Online Inter-ministerial Consultations
(Approval of SCOMET items, Norms fixation, Import/Export of Restricted Item):
PDF/JPG/JPEG/GIF Format
Electronic Data Interchange (EDI) 48
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July 21

49. ELECTRONIC DATA INTERCHANGE ( EDI)
dgftedi@nic.in/1800111550 (toll free)
49
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July 21

50. 2. SKILL INDIA
Niryat Bandhu Hand Holding Scheme for New / Potential Entrepreneurs
Counselling, Training and Outreaching Programme
MSME Cluster(Product Specific),University/Management
Institute/Trade Associations
http://niryatbandhu.iift.ac.in
50
Dr. Ashis K. Dash , ITS
July 21

51. www.niryatbandhu.iift.ac.in
51
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52. 52
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53. 53
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July 21

54. 3.EASE OF DOING BUSINESS
DGFT
DGFT as a facilitator of Exports/Imports
Citizen’s Charter (Time Schedule for Service)
Online Complaint Registration & Monitoring System (EDI)
Exporter Importer Profile
e Governance Initiatives (EDI)
54
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July 21

55. EASE OF DOING BUSINESS
24*7 Custom Clearance
• Ahmedabad
• Amritsar
• Bangalore
• Chennai
• Coimbatore
• Coachin
• Calicut
• Delhi
• Goa
• Hyderabad
• Indore
• Jaipur
• Kolkata
• Mumbai
• Nashik
• Thiruvananthapuram
•Vishakhapatnam
• Chennai
• Cochin
• Ennore
• Gopalpur
• JNPT
• Kakinada
• Kandla
• Kolkata
• Mumbai
• New
Mangalore
• Marmagoa
• Mundra
• Okha
• Paradeep
• Pipavav
• Sikka
• Tuticorin
•Vishakhapatnam
Sea Ports
(18)
Air Cargo
(17)
Specified Import
(Facilitate Bill of
Entry) & All Export
Specified
Import(Facilitate
Bill of Entry) &
Specified
Export(Factory
Stuffed container)
55
Dr. Ashis K. Dash , ITS
July 21

56. EASE OF DOING BUSINESS
Facilitation @ Custom
Reduction in
Mandatory
Documents
FOR EXPORT
Bill of Lading/Airway Bill
Commercial Invoice cum Packaging List
Shipping Bill/Bill of Export
FOR IMPORT
Bill of Lading/Airway Bill
Commercial Invoice cum Packaging List
Bill of Entry
56
Dr. Ashis K. Dash , ITS
July 21

57. EASE OF DOING BUSINESS
57
INDIAN TRADE PORTAL
(www.indiantradeportal.in)
Dr. Ashis K. Dash , ITS
July 21

58. EASE OF DOING BUSINESS
INDIAN TRADE PORTAL
(www.indiantradeportal.in)
58
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July 21

59. EASE OF DOING BUSINESS
Trade Analytics
http://commerce.gov.in/analytics/
59
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July 21

60. EASE OF DOING BUSINESS
Export-Import Data Bank
http://commerce.nic.in/eidb/default.asp
60
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July 21

61. EASE OF DOING BUSINESS
Director General of Commercial Intelligence and Statistics (DGCI&S), Kolkata
www.dgciskol.nic.in
61
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July 21

62. e BIZ
(www.ebiz.gov.in)
62
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July 21
EASE OF DOING BUSINESS

63. Calculation of Average EO (5.12 of HBP- ),“….exports
counted/being counted for fulfilling specific EO against EPCG
Authorizations within valid EO Period (whether original or
extended) that have been made in the preceding 3 years will
not be taken into account.”
25% reduction of specific EO
 In case of indigenous sourcing 5.04(c)) of FTP
 First track Export(EO within 3 years)- 5.09 of FTP
 Green Technology Products -Para 5.29 of HBP
 for North East Region and Jammu & Kashmir
• Domestic Manufacturer shall be eligible for deemed export
benefit under 7.03 of FTP
63
4.MAKE IN INDIA INITIATIVE( EPCG)
Dr. Ashis K. Dash , ITS
July 21

64. 5. ZERO DEFECT & ZERO EFFECT
Zero
defect &
Zero
Effect
Zero defect
(Quality)
Chapter-8 of FTP “Quality Complaints
And Trade Disputes” Committee on
Quality complaints and Trade Disputes
(CQCTD) will be constituted in the 22
offices of the RA’s of DGFT
zero effect
(on environment)
EPCG 5.10 of FTP - For export of Green
Technology Products
specific EO shall be 75%
MEIS-High Incentive for green products.
HBP 5.29
64
Dr. Ashis K. Dash , ITS
July 21

65. Major Recent Initiatives
Developing District as Export Hub
Govt. eMarket Place
Logistics
SEZ Reform
Redressal to Unfair Trade Practice: DGTR
Agri Export Policy
FTP Review
Affordable Export Credit Flow
Interest Equalisation Scheme and ECGC
Trading Across Border
Introduction of New Scheme: TMA & RoSCTL 65

66. EXPORT SURFING
• www.dgft.gov.in
• www.dgciskol.nic.in
• www.commerce.nic.in
• www.ecgc.in
• www.eicindia.in
• http://niryatbandhu.iift.ac.in/main.asp
• www.ebiz.gov.in
• www.icegate.gov.in/about_icegate.html
• (http://www.indiantradeportal.in
66

67. ANALYSE EXPORT-IMPORT DATA
• http://commerce.nic.in/eidb/default.asp
• http://www.indiantradeportal.in/index.jsp
• http://www.trademap.org/Index.aspx
• http://www.alibaba.com/
• http://www.dgciskol.nic.in/
• (http://121.241.212.132/exp_imp/)
• (http://www.indiantradeportal.in
67

68. Popular Websites/Export Surfing: For Market and Buyer
• http://commerce.nic.in/eidb/default.asp
• http://www.indiantradeportal.in/index.jsp
• http://www.trademap.org/Index.aspx
• http://www.alibaba.com/
• http://www.dgciskol.nic.in/
• (http://121.241.212.132/exp_imp/)
• (http://www.indiantradeportal.in
68

69. THANK YOU
69