How to choose the product and country to export? How about the know-how of INCOTERMS and their implication on Exporters? The presentation answers it all

1. Exporting from India
Part II

2. What can be Traded?
FrontalRain Technologies Pvt Ltd.
Policy Status under Special Authorization Examples
Prohibited Items (about 53 lines) No export or import allowed Wild animal
Restricted Items (485 lines) Imports Allowed with conditions Germplasms
SCOMET items (33 lines)
Exports allowed but will be subject to
permission as under schedule 2 of ITC (HS)
Special chemicals
Click here for the complete list of what can be traded

3. What to Export?
FrontalRain Technologies Pvt Ltd.
• Assessing World Market for a product
• Assessing the market trend for selected product
• Knowing current economic ties of other countries with India
• Estimating and working out fresher markets than just traditional markets
• Knowing about the existing trade barriers and tariffs for the identified product
• Competitor analysis before export
Data Mining Necessities
(www.intracen.org, http://comtrade.un.org/, http://www.dgciskol.nic.in/index.asp)
Click for Top ‘n’ commodities globally traded from India

4. Where to Export?
FrontalRain Technologies Pvt Ltd.
Steps to find a market-
• Finding the absolute and comparative advantages
• Need analysis of the market and its demand gap
• List your relevant contacts (reliable importer/ individual/ agent) in the shortlisted
countries
• UAE, Brazil, USA and UK are the countries that have major and sustainable growth
for Indian exports since 2010. China, Singapore, Hongkong, Netherland, Germany
are also prioritized export destinations for Indian exporters.

5. ITC (HS) code
FrontalRain Technologies Pvt Ltd.
080910
The International Trade Classification Harmonized System Code [ITC (HS)]* is an
identification badge of a good being traded in the world markets.
Signifies chapter that
the goods belong to
Identifies grouping
within the chapter
Further classification
within group
*ITC(HS) code runs to 10-12 digits
within the chapter-classification

6. Tips for Buyer Management
FrontalRain Technologies Pvt Ltd.
• Identify potential buyers
• Procure orders and segregate according to specifications
• Arrive at common terms on these crucial components and enter into contract:
• Pricing & Freight charges
• Payment terms and break-ups
• Manage production and supplies efficiently with thorough research and experience
• Avoid quality issues. Here’s how to implement documentation and tracing in place
• Deliver goods on time and follow up after the contract period improves business
relationship

7. INCOTERMS
FrontalRain Technologies Pvt Ltd.
INCOTERMS that apply to any mode of transport
 EXW- Ex Works: Seller obligation is only having goods available on premises
 FCA- Free Carrier: Seller is obliged to carry goods to assigned port
 CPT- Carriage Paid To: Seller is obliged for unloading of truck in port of export
 CIP- Carriage and Insurance Paid To: Seller obligation extends till the carriage reaches the place of
destination in buyer’s country

8. INCOTERMS
FrontalRain Technologies Pvt Ltd.
INCOTERMS that apply to any mode of transport
 DAT- Delivered at Terminal: Seller’s liability extends till unloading the product container in the port of
import
 DAP- Delivered at Place: Loading on truck at port of import and unloading the products to the place
of destination
 DDP- Delivered Duty Paid: Import taxes are paid by the seller whose obligation is till the products
reach the place of destination

9. INCOTERMS
FrontalRain Technologies Pvt Ltd.
INCOTERMS that apply to sea and inland waterway transport only:
 FAS- Free Alongside Ship: Exporter’s obligation extends till the truck is unloaded at the truck in port
of export
 FOB- Free on Board: Loading on vessel/airplane in port of export is seller’s liability
 CFR- Cost and Freight: Carriage (Sea/Air) to port of import is seller’s obligation
 CIF- Cost, Insurance, and Freight: Insurance is to be taken care by seller and the unloading in port of
import is either borne by the seller or the buyer

10. Allocations of costs
FrontalRain Technologies Pvt Ltd.
Incoterm
2010
Export
customs
declaration
Carriage
to port
of
export
Unloading
of truck in
port of
export
Loading on
vessel/airplan
e in port of
export
Carriage
(Sea/Air)
to port
of
import
Insurance
Unloading
in port of
import
Loading on
truck in
port of
import
Carriage to
place of
destination
Import
customs
clearance
Import
taxes
EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FCA Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FAS Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FOB Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer
CPT Seller Seller Seller Seller Seller Buyer Seller Buyer/Seller Seller Buyer Buyer
CFR(CNF) Seller Seller Seller Seller Seller Buyer Buyer/Seller Buyer Buyer Buyer Buyer
CIF Seller Seller Seller Seller Seller Seller Buyer/Seller Buyer Buyer Buyer Buyer
CIP Seller Seller Seller Seller Seller Seller Seller Buyer/Seller Seller Buyer Buyer
DAT Seller Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer
DAP Seller Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller

11. FrontalRain Technologies Pvt Ltd.