The document outlines the key elements of export marketing, including the importance of market research, strategy formulation, and the implementation of an export marketing plan. It discusses the challenges faced by exporters in international trade, such as geography, payment methods, and legal norms, while detailing the steps involved in processing an export order, from examination of orders to dispatching shipment advice. Additionally, it emphasizes the necessity of drafting clear export contracts to mitigate disputes and the role of arbitration in resolving commercial conflicts.

1. Export Marketing

2. Export Marketing: Introduction & Plan
Exporting marketing is the practice by which a company sells products or services to a foreign
country. Products are produced or distributed from the company's home country to buyers in
international locations. Hereby a company markets the products/services in international locations
Export Marketing Plan:
• Research
 Review market potential and develop an action plan: Keep in mind, exporting is a process that
needs to be planned and prepared carefully. Focus and clear objectives are very important.
Make sure every one in the organization is aware of the objectives and goals.
 Selection of the market: The next step is the selection of the new market. Preparation is the
key and knowledge of a market is important to limit the number of risks and improve the
success rate. Do not forget to focus. Often the ambition to export to as many possible
countries is high. Please keep in mind that, in the beginning, it is important to focus on 1 or
max. 2 countries.

3. Export Marketing: Introduction & Plan
Export Marketing Plan:
• Strategy
 Knowledge and preparation (stay focused): When you have finished your first research and
you selected a market, you can start creating a strategy for exporting to the new market you
choose. Where do you want to go and how will you achieve this? Again, here it is important
to focus, make sure you have a plan and that you stick to this plan. We often see that
companies start focusing on one market and start to get interested in exporting to another
market along the way. Please make sure you stay focused on your strategy. It would be a pity
if all your hard work has been for nothing.
• Trade Shows and Trade Missions
Taking part in overseas trade missions, trade shows or other export events are perfect tools to
research the market, test potential, finding customers and make sales
• Implementation of your Export Marketing Plan
When you think you are completely prepared for exporting to a new market, you can start
implementing your export marketing plan. Keep in mind that it is possible that your export
marketing plan does not work. However, implementing and entering a new market takes time.
Again, focusing is important! Be patient.

4. Export Marketing: Introduction & Plan
Export Marketing Plan:
Keep in mind, this is just a basic roadmap for preparing your strategy. While creating and
executing your export marketing strategy, do not forget:
• Finding reliable agents, importers/buyers, in-market consultants
• Think about how to sell and market your product in a market different than yours
• Limit payment risks (What will be your terms of payment?)
• Shipment (What will be your terms of delivery?)
• Exchange rates and inflation
• Language barriers and cultural differences in doing business
• Get your documentation right and stay updated about legal requirements, etc

5. Difficulties Faced By Exporters in International Trade
• Geography and transportation: One of the first exporting challenges that you might have to deal
with is the distance. If you are planning to export your goods to a country that is far away from
your location, the process can get a bit complicated. Especially if the country is in a different
continent and therefore, a different system can be utilized. And the longer the distance gets, the
more complex transportation gets.
• Payment Methods: Consider the different currencies and potential money loss along the way, so
you don’t waste your funds. It is especially important if you are trading with a country that
doesn’t use euro or USD currencies! Keep in mind that exchange rates change on a daily basis, so
time is an important factor when you make a payment. Good communication with a trusted
importer will ease your job a lot and save you from unexpected issues that might occur.
• Different Legal Norms: When it comes to possible problems of exporting goods, the legal
systems is an important one. You should stay informed regarding government laws. Some
regulations might delay the export-import process and create issues for both exporter and the
local importer. The most important problems of import and export come from a bad legal system
in one country or another

6. Difficulties Faced By Exporters in International Trade
• Language Barriers: Language barriers can be a real issue when trading internationally. If your
importer doesn’t speak the same language things might be lost in the translation.
• Finding the right Importer: Maybe the most important part to take care of as an international
trader is finding the right importer. Your partner can become a blessing or a curse for you. Always
pay attention when you decide to do business with an importer or another and do your best to
avoid possible local scams
• Different Customs and Cultures: When you are exporting into a new country, you need to
consider their culture and traditions. It is crucial to do your research on local traditions and adapt
your export-import process to that.

7. Processing of an Export Order
Below are the various steps involved in the processing of an export order:
• Having an Export Order: Processing of an export order starts with the receipt of an export order.
An export order, simply stated, means that there should be an agreement in the form of a
document, between the exporter and importer before the exporter actually starts producing or
procuring goods for shipment. Generally an export order may take the form of proforma invoice
or purchase order or letter of credit
• Examination and Confirmation of Order: Having received an export order, the exporter should
examine it with reference to the terms and conditions of the contract. In fact, this is the most
crucial stage as all subsequent actions and reactions depend on the terms and conditions of the
export order. The examination of an export order, therefore, includes items like product
description, terms of payment, terms of shipment, inspection and insurance requirement,
documents realising payment and the last date of negotiation of documents with the bank.
Having being satisfied with these, the export order is confirmed by the exporter.

8. Processing of an Export Order
Below are the various steps involved in the processing of an export order:
• Manufacturing or Procuring Goods: The Reserve Bank of India (RBI), under the export credit
(interest subsidy) scheme, extends pre-shipment credit to exporter to finance working capital
needs for purchase of raw materials, processing them and converting them into finished goods
for the purpose of exports. The exporter approaches the bank on the basis of laid down
procedures for the pre-shipment credit. Having received credit, the exporter starts to
manufacture / procure and pack the goods for shipment overseas
• Clearance from Central Excise: As soon as goods have been manufactured/ procured, the
process for obtaining clearance from central excise duty starts
• Pre-Shipment Inspection: There are number of-goods whose export requires quality certification
as per the Government of India’s notification. Consequently, the Indian custom authorities will
require the submission of an inspection certificate issued by the competent and designated
authority before permitting the shipment of goods takes place. The Inspection Certificate is
issued in triplicate. The original copy is for the customs verification. The second copy of the
certificate is sent to the importer and the third copy remains with the exporter for his reference
purpose

9. Processing of an Export Order
Below are the various steps involved in the processing of an export order:
• Appointment of Clearing and Forwarding Agents: The exporter appoints clearing and forwarding
agents who perform a number of functions on behalf of the exporter. The main functions
performed by these agents include packing, marking and labelling of consignment, arrangement
for transport to the port arrangement for shipment overseas, customs clearance of cargo,
procurement of transport and other documents.
• Goods to Port of Shipment: After the excise clearance and pre-shipment inspection formalities
are completed, the goods to be exported are packed, marked and labelled. Proper marking,
labelling and packing help quick and safe transportation of goods. The export department takes
steps to reserve space on the ship through which goods are to be sent to the importer. The
shipping space can be reserved either through the clearing and forwarding agent or freight
broker who works on behalf of the shipping company or directly from the shipping company.
Once the space is reserved, the shipping company issues a document known as Shipping Order.
This order serves as a proof of space reservation. If goods are sent through a road carrier to the
port, no specific formality is involved. In case, the goods are sent by rail to the port of shipment,
allotment of wagon (also known as goods carriage) needs to be obtained from the Railway
Board.

10. Processing of an Export Order
Below are the various steps involved in the processing of an export order:
• Port Formalities and Customs Clearance: Having received the documents from the export
department, the clearing and forwarding agent takes delivery of the cargo from the railway
station or the road transport company and stores it in the warehouse. He also obtains customs
clearance and permission from the port authorities to bring the cargo into the shipment shed.
The custom department grants permission for export at the office of the customs and physical
verification of goods in the shipment shed. The clearance for export is given on the Shipping Bill.
• Dispatch of Documents by Forwarding Agent to the Exporter: After obtaining the Bill of Lading
from the Shipping Company, the clearing and forwarding agent dispatches all the documents to
his / her exporter.
• Certificate of Origin: On receipt of above documents from the forwarding agent, the exporter
now applies to the Chamber of Commerce for a Certificate of Origin and obtains it.
• Dispatch of Shipment Advice to the Importer: At last, the exporter sends ‘Shipment Advice’ to
the importer intimating the date of shipment of the consignment by a named vessel and its
expected time of arrival at the destination port of the importer.

11. Processing of an Export Order
Below are the various steps involved in the processing of an export order:
• Dispatch of Shipment Advice to the Importer: At last, the exporter sends ‘Shipment Advice’ to
the importer intimating the date of shipment of the consignment by a named vessel and its
expected time of arrival at the destination port of the importer.
• Submission of Documents to Bank: At the end of the process, the exporter presents the
following documents to his bank for realisation of his amount
• Claiming Export Incentives: On completion of the processing of an export order at the three
levels of shipment i.e., pre-shipment, shipment and post-shipment, the exporter claims for
export incentives admissible to him / her.

12. Entering into Export Contract
In order to avoid disputes, it is necessary to enter into an export contract with the overseas buyer.
For this purpose, export contract should be carefully drafted incorporating comprehensive but in
precise terms, all relevant and important conditions of the trade deal. There should not be any
ambiguity regarding the exact specifications of goods and terms of sale including export price,
mode of payment, storage and distribution methods, type of packaging, port of shipment, delivery
schedule etc.
The different aspects of an export contract are enumerated as under:

13. Entering into Export Contract
The different aspects of an export contract are enumerated as under:
•
With regard to Force majeure, it is an event or effect that can neither be anticipated nor controlled
With respect to Arbitration, it will not be out of place to mention here the importance of
arbitration clause in an export contract. Court proceedings do not offer a satisfactory method for
settlement of commercial disputes, as they involve inevitable delays, costs and technicalities. On
the other hand, arbitration provides an economic, expeditious and informal remedy for settlement
of commercial disputes. Arbitration proceedings are conducted in privacy and the awards are kept
confidential. The Arbitrator is usually an expert in the subject matter of the dispute. The dates for
arbitration meetings are fixed with the convenience of all concerned. Thus, arbitration is the most
suitable way for settlements of commercial disputes and it may invariably be used by businessmen
in their commercial dealings.