1. Mechanism of trading
internationally

2. The Trade Transaction
GOODS
A BINFORMATION
PAYMENT

3. Eleven step process
Step 1
Prepare a
Business plan
Name of the
organization
Registration
under
companies act
Open a bank
account
Step 2
Product
selection for
export
Market research Product evaluation

4. Step 3
Registration with Director
General of Foreign Trade to
get IEC number
Step 4
Registration with
the relevant
export promotion
Registration with
Sales Tax Office
Registration with Export
Credit Guarantee
Corporation

5. Step 5
Market
Identification
Need Analysis
Step 6
Channel Selection
Agents/Distributors/
Wholesalers/ End
User s/ Sales Reps

6. Step 7
Identifying the
Potential
Buyers /
Customers
Trade Fairs/Internet/
Personal
Visits/Contacts/Agents
Going for procuring
orders
Step 8
Agreeing upon pricing,
document ,freight
charges, currency
,delivery etc.
Signing of contract

7. Step 9
Determining the payment
terms
Advance Payment/
Letter of Credit (LC) /
Open Account
Step 10
Importer
sends
purchase
order
Production
Packaging,
warehousing
Certificate of
quality control

8. Step 11
Prepare marine,
air, and docs
Insurance
certificate,
shipping bill
Receipt, Bills of
lading
Transportation
Maritime / Air /
Road / Rail
Submission of docs
to banks
Bank sends docs to
importer’s bank
.payment is done

9. International trade transaction procedures
Commercial
Procedures
• Establish
Contract
• Order Goods
• Advise On
Delivery
• Request Payment
Transport
Procedures
• Establish Transport
Contract
• Collect,Transport
and Deliver Goods
• Provide Goods
Receipts Status
reports
Regulatory
Procudures
• Obtain Import/Export
Licences etc
• Provide Customs
Declarations
• Provide Cargo
Declaration
• Apply Trade Security
Procedures
• Clear Goods for
Export/Import
Financial
Procedures
• Provide Credit
Rating
• Provide Insurance
• Provide Credit
• Execute Payment
• Issue Statements
Prepare For
Export
Export
Transport
Import
SHIPBUY PAY
Prepare For
Import

10. Commercial procedures
 Establish contract
 Order goods
 Advice on delivery
 Request for payment

11. Transportation procedures
 Establish transport contract
 Collect, transport and deliver goods
 Provide goods receipts and status
reports

12. Regulatory procedures
 Obtain import export licenses
 Provide customer deceleration
 Provide cargo deceleration
 Apply trade security procedures

13. Finance procedures
 Provide credit rating
 Provide insurance
 Provide credit
 Execute payment
 Issue statement

14. Questions….

15. Thank you!!!