The document discusses export houses in India. It defines an export house as a registered exporter holding a valid Export House Certificate issued by the Director General of Foreign Trade. The objectives of an export house are to ensure regular supplies of commodities at reasonable prices to consumers, ensure fair prices for farmers, minimize price fluctuations, undertake procurement and maintenance of buffer stocks for distribution when needed, and arrange for storage, transportation, packaging and processing. Export houses can take the form of manufacturer exporters, merchant exporters, service providers, export oriented units, special economic zones, and software technology parks. The validity of an Export House Certificate is 5 years and must be renewed before expiry.

1. Export
Import
Export House
Exim Policy
Classroom Deliberations
CA Dr. Prithvi Ranjan Parhi
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2. 703- INTERNATIONAL TRADE AND BUSINESS
MODULE- I
International Trade: Concept, Importance, Benefits of International Trade, international
Marking vs. Domestic Marking (differences).
Theory of International Trade: theory of comparative Cost, factor proportion Theory.
MODULE-II
Multinational corporations (MNCs): Definition, Role of MNCs in International marking.
International Trade barriers: Meaning, tariff and non-Tariff Barriers, Impact of Non-tariff
barriers.
MODULE-III
Organizational and Agreements: WTO (Functions, Principle, agreements), IMF (Purposes,
Facilities Provided by IMF), World Bank (Purpose, Principle, Policies).
MODULE-IV
Foreign Trade of India: Organizational Setup (Autonomous Bodies, Attached and
subordinate offices), Major Export and Imports, Concept of Export House, EXIM Policy
(2002-2007) of India (Features and Objectives of the Policy).
MODULE-V
Foreign Exchange market: Concept, Functions, Methods of international Payment, concept
of Balance of Payment, Concept of Fixed and Flexible Exchange Rate and Convertibility of
Rupee.
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3. What India export?
• Petroleum products,
• Mineral fuels including oil,
• Gems,
• Precious metals,
• Machinery including computers,
• Organic,
• Electrical machinery,
• Equipment,
• Chemicals,
• Iron,
• Steel,
• and Pharmaceuticals products.
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4. What India Imports?
• Crude petroleum,
• Gold,
• Pearls,
• Precious stones,
• Petroleum products,
• Telecom instruments,
• Electronic components,
• Industrial machinery,
• Electronic components,
• Animal/vegetable fats,
• Oils,
• waxes,
• Plastics,
• Plastic articles,
• and Medical apparatus.
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5. Top 10 Import sources of India are;
Country
Export value (2018-19)
US$ Billion
Percentage Share(2018-19)
1. China PRP 70.32 13.68
2. USA 35.55 6.92
3.United Arab Emirates 29.78 5.79
4.Saudi Arab 28.48 5.54
5.Iraq 22.37 4.35
6.Switzerland 18.08 3.52
7.Hong Kong 17.99 3.50
8.Korea RP 16.76 3.26
9.Singapore 16.28 3.17
10.Indonesia 15.85 3.08
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6. Top 10 Largest export destination of India are;
Country
Import value (2018-19)
US$ Billion
Percentage
Share(2018-19)
1.USA 52.43 15.88
2.United Arab Emirates 30.13 9.13
3.China PRP 16.75 5.07
4.Hong Kong 13.00 3.94
5.Singapore 11.57 3.51
6.United Kingdom 9.33 2.83
7.Bangladesh PR 9.21 2.79
8.Germany 8.90 2.70
9.Netherland 8.81 2.67
10.Nepal 7.76 2.3
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7. How to Start Export
1) Establishing an Organisation
• To start the export business, first a sole Proprietary concern/ Partnership
firm/Company has to be set up as per procedure with an attractive name and
logo.
2) Opening a Bank Account
• A current account with a Bank authorized to deal in Foreign Exchange should
be opened.
3) Obtaining Permanent Account Number (PAN)
• It is necessary for every exporter and importer to obtain a PAN from the
Income Tax Department.
4) Obtaining Importer-Exporter Code (IEC) Number
• As per the Foreign Trade Policy, it is mandatory to obtain IEC for export/import
from India. Para 2.05 of the FTP, 2015-20 lays down the procedure to be
followed for obtaining an IEC, which is PAN based.
•
An application for IEC is filed online at www.dgft.gov.in as per ANF 2A, online
payment of application fee of Rs. 500/- through net Banking or credit/debit
card is made along with requisite documents as mentioned in the application
form.
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8. 5) Registration cum membership certificate (RCMC)
• For availing authorization to import/ export or any other benefit or
concession under FTP 2015-20, as also to avail the services/ guidance,
exporters are required to obtain RCMC granted by the concerned
Export Promotion Councils/ FIEO/Commodity Boards/ Authorities.
6) Selection of product
• All items are freely exportable except few items appearing in
prohibited/ restricted list.
• After studying the trends of export of different products from India
proper selection of the product(s) to be exported may be made.
7) Selection of Markets
• An overseas market should be selected after research covering market
size, competition, quality requirements, payment terms etc. Exporters
can also evaluate the markets based on the export benefits available for
few countries under the FTP. Export promotion agencies, Indian
Missions abroad, colleagues, friends, and relatives might be helpful in
gathering information.
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How to Start Export

9. 8) Finding Buyers
• Participation in trade fairs, buyer seller meets, exhibitions, B2B portals,
web browsing are an effective tool to find buyers. EPC’s, Indian Missions
abroad, overseas chambers of commerce can also be helpful. Creating
multilingual Website with product catalogue, price, payment terms and
other related information would also help.
9) Sampling
• Providing customized samples as per the demands of Foreign buyers help
in getting export orders. As per FTP 2015-2020, exports of bonafide trade
and technical samples of freely exportable items shall be allowed without
any limit.
10) Pricing/Costing
• Product pricing is crucial in getting buyers’ attention and promoting sales
in view of international competition. The price should be worked out
taking into consideration all expenses from sampling to realization of
export proceeds on the basis of terms of sale i.e. Free on Board (FOB),
Cost, Insurance & Freight (CIF), Cost & Freight(C&F), etc. Goal of
establishing export costing should be to sell maximum quantity at
competitive price with maximum profit margin. Preparing an export
costing sheet for every export product is advisable.
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How to Start Export

10. 11) Negotiation with Buyers
• After determining the buyer’s interest in the product,
future prospects and continuity in business, demand for
giving reasonable allowance/discount in price may be
considered.
12) Covering Risks through ECGC
• International trade involves payment risks due to buyer/
Country insolvency. These risks can be covered by an
appropriate Policy from Export Credit Guarantee
Corporation Ltd (ECGC). Where the buyer is placing order
without making advance payment or opening letter of
Credit, it is advisable to procure credit limit on the foreign
buyer from ECGC to protect against risk of non-payment.
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How to Start Export

11. Processing Export Order
1. Confirmation of order
2. Procurement of Goods
3. Quality Control
4. Finance
5. Labeling, Packaging, Packing and Marking
6. Insurance
7. Delivery
8. Customs Procedures- PAN based Business Identification
Number (BIN)
9. Customs House Agents
10. Documentation
11. Submission of documents to Bank
12. Realization of Export Proceeds
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12. x. Documentation
• FTP 2015-2020 describe the following
mandatory documents for import and export.
1. Bill of Lading/ Airway bill
2. Commercial invoice cum packing list
3. Shipping bill/ bill of export/ bill of entry (for
imports)
• (Other documents like certificate of origin,
inspection certificate etc may be required as
per the case.)
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13. xi. Submission of documents to Bank
• After shipment, it is obligatory to present the documents to
the Bank within 21 days for onward dispatch to the foreign
Bank for arranging payment. Documents should be drawn
under Collection/Purchase/Negotiation under L/C as the case
may be, along with the following documents
1. - Bill of Exchange
2. - Letter of Credit (if shipment is under L/C)
3. - Invoice
4. - Packing List
5. - Airway Bill/Bill of Lading
6. - Declaration under Foreign Exchange
7. - Certificate of Origin/GSP
8. - Inspection Certificate, wherever necessary
9. - Any other document as required in the L/C or by the buyer
or statutorily.
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14. xii. Realization of Export Proceeds
• As per FTP 2015-2020, all export contracts and
invoices shall be denominated either in freely
convertible currency of Indian rupees, but
export proceeds should be realized in freely
convertible currency except for export to Iran.
• Export proceeds should be realized in 9
months.
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15. Import :Basic Steps
1. Decide the country.
2. Search for suppliers.
3. Verify the restrictions
4. Search the duty and taxes.
5. Find a reliable freight forwarder and customs
broker.
6. Shipping of the goods on time.
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16. Websites
• Indian Trade Portal
• DGFT
• ECGC
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19. CA Dr Prithvi Ranjan Parhi 19

20. Export House
Classroom Deliberations
CA Dr. Prithvi Ranjan Parhi
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21. Export House
• Export House is defined as a registered
exporter holding a valid Export House
Certificate issued by the Director general of
Foreign Trade in India.
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22. CA Dr Prithvi Ranjan Parhi 22

23. Objectives Of Export House
1. To make available supplies of essential
commodities to consumers at reasonable prices
on a regular basis.
2. To ensure a fair price of the produce to the
farmers so that there may be an adequate
incentive to increase production.
3. To minimize Price fluctuations.
4. To undertake the procurement and maintenance
of buffer stock and their distribution whenever
and wherever necessary.
5. To arrange for storage, transportation, packaging
and processing.
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24. Forms
1. Manufacturer Exporter
2. Merchant Exporter
3. Service Providers
4. Export Oriented Units (EOU’s)
5. Special Economic Zones (SEZ’s)
6. Software Technology Parks (STP’s)
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25. Validity of Status Holder Certificate:
• Status Holder Certificate or Export House
Certificate shall be valid for 5 Years from the
date of issue of certificate.
• Certificate renewal shall be filed before the
expiry of existing validity period.
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26. Export House
1. Export houses better take care of the buyers
specifications and provide them good quality
products.
2. Exporters should invest in technological tools, and
come at par to compete with their foreign
competitors.
3. Export trading houses export large volumes of
products from many sources of lower unit costs
through established networks of overseas offices.
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27. Exim Policy
(Foreign Trade Policy)
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28. Exim Policy
• Export Import Policy or better known as Exim
Policy is a set of guidelines and instructions
related to the import and export of goods.
• The Export Import Policy is updated every year
on the 31st of March and the modifications,
improvements and new schemes becomes
effective from 1st April of every year.
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29. FTP
• Foreign Trade Policy (FTP) is the prime policy that
lays down simple and transparent procedures which
are easy to comply with and administer for efficient
management of foreign trade in India.
• The Policy aims at enhancing the country’s trade for
economic growth and employment generation.
• The Customs Tariff Act and the Central Excise Tariff
Act are the other two important Acts which lay
down how the Customs and Excise duties shall be
levied on trade, respectively.
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30. Foreign Trade Policy
• FTP 2015-20 introduces two new schemes, namely
1. "Merchandise Exports from India Scheme (MEIS)" and
2. "Services Exports from India Scheme (SEIS)".
• The 'Services Exports from India Scheme' (SEIS) is for
increasing exports of notified services.
• These schemes (MEIS and SEIS) replace multiple
schemes earlier in place, each with different conditions
for eligibility and usage.
• Incentives (MEIS & SEIS) to be available for SEZs also.
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31. • Agricultural and village industry products to be supported
across the globe at rates of 3% and 5% under MEIS.
• Higher level of support to be provided to processed and
packaged agricultural and food items under MEIS.
• Industrial products to be supported in major markets at
rates ranging from 2% to 3%.
• Branding campaigns planned to promote exports in sectors
where
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32. • Nomenclature of Export House, Star Export
House, Trading House, Premier Trading House
certificate changed to 1,2,3,4,5 Star Export
House.
• No need to repeatedly submit physical copies
of documents available on Exporter Importer
Profile.
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33. Star Export Houses
Status Holder Export Performance
FOB/FOR (as converted )
Value (in the US $ million)
One Star Export House 3
Two Star Export House 25
Three Star Export House 100
Four Star Export House 500
Five Star Export House 2,000
1 Million = 10,00,000
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34. Thank You
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CA Dr Prithvi Ranjan Parhi