4. As per section 2 of foreign trade
Act,1992, the term “EXPORT”
shipping or selling or sending the
goods to other country.
The sellers of such goods and
services is referred to as an
“EXPORTER”
WHAT IS EXPORT ?
6. 1.ESTABLISHING AN ORGANISATION
2.OPENING a BANK ACCOUNT
3.Obtaining Importers-Exporters code (IEC)
4.Registration cum membership certificate
5.Export License
6.Finance
7.Selection of product
8.Selection of markets
9.Finding buyers
10.Sampling
11.Pricing/costing
8. •STAGE 1:
•Resgistration from export promotion council
•Registration for the code number from DGFT.
(Director General of Foreign Trade.
•Filling income tax return
STAGE 2:
• CONFIRMING OF ORDER
• ARRANGEMENT OF PRE-SHIPMENT FINANCE
•PRODUCTION OR PROCUREMENTS OF GOODS
•PACKING AND MARKING AND LABELING
•PRE- SHIPMENT INSPECTION
•CENTRAL EXCISE CLEARANCE
•OBTAINING INSURANCE COVER
•APPOINTMENT OF AGENT
9. PACKING GOODS
During transit, handling, and storage, goods may
have to endure bad weather and extreme
temperatures. For some types of goods, they need
special temperature controls or other protective
measures.
The type of shipping may determine the kind of
packing you should use. For example, if the goods
are carried by ship, you need to know whether they
will be placed above or below deck.
10. LABELS AND MARKS
It is mandatory to verify the labeling regulations as they are vary widely
from nation to nation. Marks shown on the shipping container must
agree with those on the bill of lading or other shipping documents. They
may include:
Buyer’s name or some other form of agreed identification.
Port of entry into the importing country.
Gross and net weight of the product in kilograms and pounds.
Identification of the country of origin, e.g., Made in India.
Number of packages.
Appropriate warnings or cautionary markings.
11. TRANSPORTATION INSURANCE
•International transportation insurance is required
as international carriers assume only limited liability
and make the seller responsible for the goods up to
the point of delivery to the foreign buyer.
•Marine transportation insurance protects both
ocean and air-bound cargo. There are three main
types of marine transportation insurance:
1. Free of particular average.
2. With average.
3. All risk.
12. METHODS OF DELIVERY
There are four ways of delivering/getting your product
to the customer’s product as opting for the right
shipping method, or combination of methods , is vital
to export success:
TRUCK
RAIL
AIR
OCEAN
13. FREIGHT FORWARDERS AND BROKERS
A Freight forwarder will help you improve your
delivery times in customer services.
These agencies will negotiate rates for you with
shipping lines, Air lines, Trucking companies, customs
brokers and insurance firms.
They can handle all your logistical requirements or
negotiate shipping rates.
16. EXPORT DOCUMENTATION:
The documentation identifies the goods and the
terms of sale.
It also provides titles to the goods, evidence of
insurance coverage and certifies a certain quality
or standard.
Several documents are required for overseas
shipping and fall into two categories.
17. SHIPPING DOCUMENTS
Usually shipping documents are prepared by
freight forwarders. Key shipping documents
include:
A commercial invoice.
A special packing or marking list.
A certificate of origin.
A bill of lading.
A BILL OF LADING is used for land and ocean
freight, and an air waybill is used for air freight.
18.
19. COLLECTION DOCUMENTS:
The most important collection document is probably the
“Commercial invoice”, which describes the goods in detail and lists
the amount owing by the foreign buyer. It must include:
The date of issue.
The names and address of the buyer and seller.
The invoice number, a description of goods and unit price.
Shipping marks and numbers.
The terms of delivery and payments.
Some other collection documents include:
Certificate of origin.
Certification of inspection.
Import and export licenses, e.g.. NAFTA {certificate of origin}
20. CUSTOMS CLEARANCE
CARRY THE GOODS INSIDE DOCK.
STORING THE GOODS IN THE SHED
EXAMINATION OF GOODS
LET SHIP ORDER
LOADING OF GOODS
PAYMENT OF PORT DUES
OBTAINING BILL OF LADING