1. ORGANISING AN EXPORT FIRM
Introduction
Setting Up of an Export Firm
Establishing a Business Firm
Selection of the name of the firm
Obtaining approval of the name of the firm
Selection of the form of ownership organisation
Deciding location of the firm
Developing trade name and logo
Creating the necessary infrastructure
Applying for the grant of permanent account number
(PAN) of income tax
Opening current account with the bank
REGISTRATION PROCEDURE
To Obtain Code Number
To Register with ECGC
To Register with Export Promotion Council
To Become Member of Chamber of Commerce
and Productivity Councils
To Become Member of IIFT
PROCESS OF EXECUTION OF AN EXPORT ORDER
Quotation and Indent
Receipt of Order
Receiving Letter of Credit
Shipping and Credit Enquiry
Arrangement for Shipment
Pre-Shipment Inspection
Packing
Marking
Clearing and Forwarding Agent
Dispatch of Documents to the Exporter
Shipment Advice to Importer
Presentation of Documents to the Bank
Realisation of Export Proceeds
Follow-up of Export Sales
TYPES OF EXPORT ORGANISATIONS
Merchant Exporter
Manufacturer Exporter
Entrepreneur Merchant Exporters
Canalising Agencies
State Corporations
2. HOW TO EXPORT BUSINESS
Introduction
STARTING EXPORTS
Establishing an Organisation
Opening a Bank Account
Obtaining Permanent Account Number (PAN)
Obtaining Importer-Exporter Code (IEC) Number
Registration cum membership certificate (RCMC)
Selection of product
Selection of Markets
Finding Buyers
Sampling
Pricing/Costing
Negotiation with Buyers
Covering Risks through ECGC
Processing an Export Order
Confirmation of order
Procurement of Goods
Quality Control
Finance
Labeling, Packaging, Packing and Marking
Insurance
Delivery
Customs Procedures
Customs House Agents
Documentation
Submission of documents to Bank
Realization of Export Proceeds
3. HOW TO SELL OVERSEAS
RESPONDING TO INQUIRIES
Reply to all correspondents except to those
who obviously will not turn into customers
Reply promptly, completely, and clearly
Enclose information on the firm’s goods or services
SEPARATING THE WHEAT FROM THE CHAFF
Business libraries
International banks
Foreign embassies
Sources of credit information
BUSINESS PRACTICES IN INTERNATIONAL SELLING
Keep promises
Be polite, courteous, and friendly
Personally sign all letters
BUILDING A WORKING RELATIONSHIP
4. EXPORT PROCEDURE
Introduction
Governing Authorities
Export Procedure
Receipt of an Order
Obtaining License and Quota
Letter of Credit
Fixing the Exchange Rate
Foreign Exchange Formalities
Preparation for Executing the Order
Formalities by a Forwarding Agent
Bill of Lading
Shipment Advise to the Importer
Presentation of Documents to the Bank
The Realisation of Export Proceeds
5. EXPORT PRODUCT PLANNING
INTRODUCTION
MODES OF ENTRY IN FOREIGN MARKET
Direct Exporting
Indirect Exporting
Joint Venture
Franchising Strategy
One Country Production Base
Licensing
Contract Manufacturing
Acquisitions
Turnkey Contracts
Green-Field Development
CRITERIA FOR SELECTION OF PRODUCT FOR EXPORT
NEW PRODUCT DEVELOPMENT PROCESS
NEW PRODUCT DEVELOPMENT PROCESS (STEPS)
Idea Generation
Idea Screening
Concept Testing
Business Analysis
Product Development
Test Marketing
Commercialisation
Review of Marketing Performance
IDENTIFYING FOREIGN MARKET FOR EXPORT OF PRODUCTFACTORS AFFECTING WHILE SELECTING OVERSEAS MARKET
Competition
Demand
Import Regulations
Size of the Market
Distribution Network
After-Sale-Service
Higher Productivity
Social Responsibility
Political Stability
Reducing Business Risk
Location
PROCEDURE OF SELECTING OVERSEAS MARKETS
Defining the Export Marketing Objectives
Deciding parameters for selection of overseas Market
Preliminary Screening of Prospective Markets
Short Listing of Overseas Markets
Detailed Scrutiny of short listed Markets
Selection of Most Promising Overseas Market
Actual Entry in Selected Market
Follow – Up / Review of Selected Overseas Market
PRODUCT LIFE CYCLE
Product Development Stage
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
PRODUCT PLANNING STRATEGIES OF EXPORTS
PRODUCT DESIGN STRATEGIES
Product Innovation Strategy
Product Adaptation Strategy
Product Standardization Strategy
PRICING STRATEGIES
Skimming Pricing
Differential Pricing
Standard pricing
DISTRIBUTION STRATEGIES
Direct Exporting
Indirect exporting
PROMOTION STRATEGIES
After-Sale-Service Strategy
Product Positioning Strategy
Product Line Strategy
Product Mix
Breadh And Depth Of Product Mix
Reasons For Product Mix
PRODUCT BRNADING
Meaning Of Brand
Methods Of Branding
Product Packaging
Self – Service
Consumer affluence
Company and brand image
Innovation Opportunity
IMPORTANCE OF PACKAGING
Protection
Preservation
Promotion
Convenience to Consumer
Benefit to retailers
After – use Value
Identification
Develops Confidence
LABELLING
Meaning
Types Of Labels
Label Design – Its Objectives
6. INTRODUCTION TO EXPORT MARKETING
Introduction
Features of Export Marketing
Systematic Process
Large Scale Operations
Dominance of Multinational Corporations
Customer Focus
Trade barriers
Trading Blocs
Three – faced competition
Documentation
Foreign exchange regulations
Marketing – mix
International marketing Research
Spreading of Risks
Reputation
Need / Importance / Advantages of Export Marketing at the National Level
Earning foreign exchange
International Relations
Balance of payment
Reputation in the world
Employment Opportunities
Promoting economic development
Optimum Utilization of Resources
Spread Effect
Higher standard of Living
Need / Importance / Advantages of export marketing at Business / Firm / Enterprise Level
Reputation
Optimum Production
Spreading of Risk
Export obligation
Improvement in organizational efficiency
Improvement in product standards
Liberal Imports
Financial and non-Financial benefits
Higher profits
MOTIVATIONS FOR EXPORT MARKETING
Rate of profit
Sales and production stability
Inadequate domestic demand
Economic growth
Reducing business risks
Information and media Revolution
Strategic vision
Accepting social responsibility
Government policies
W. T. O.
Benefit of bulk selling
TYPES OF EXPORT MARKETING
ORGANISATIONS (EMOs)
Manufacturer Exporter
Merchant Exporter
Canalizing Agencies
State Corporations
Export Consortium
Export Houses
Star Trading Houses
Trading House
Premier Trading Houses
EXPORT PROMOTION ORGANISATIONS
Features Of Export Promotion
Organisation
Basically Service Orgainisations
Create Favourable Image of India‘s Export Potentials
Easy Availability of Services to Exporters
Government Initiative in Formation
Provide Non-Financial Services
EXPORT PROMOTION COUNCIL
Meaning
Functions/Role Of Export Promotion Councils
Issue of Certificate of Origin
Collection of Information
Supplying of Information
Organising Seminar
Trade Fairs and Exhibitions
Recommendation to Government
Sending Trade Delegations
Professional Advice
Exploration of Overseas Markets
Developing Export Consciousness
COMMODITY BOARDS
Meaning
Functions Of Commodity Board
Marine Products Export Development
AUTHORITY (MPEDA)
Functions Of Mpeda
AGRICULTURAL AND PROCESSED FOOD PRODUCTS
EXPORT DEVELOPMENT AUTHORITY (APEDA)
Meaning
Function Of Apfda
Development of the agricultural and processed food industries
Quality Control and Up gradation
Collection and Dissemination of Information
Advisory Role
Other Services of APEDA
FEDERATION OF INDIAN EXPORT ORGANISATIONS (FIEO)
Meaning
Functions Of Federation Of Indian Export Organisation
International linkage
Dissemination of Information
Liaisoning with Government
Market Development Assistance (MDA)
Market Research and Development Department
Publicity Department
7. REGISTRATION OF EXPORTERS
EXPORTER REGISTRATION
De-Registration
Appeal Against De-Registration
Issue Of Export Permit And Ico Certificate Of Origin
Furnishing Of Proof Of Shipment
Dissemination Of Trade Information
Coffee Quality Improvement Programme
Terms Registration of Exporters
Registration with Reserve Bank of India (RBI)
Registration with Director General of Foreign Trade (DGFT)
Registration with Export Promotion Council
Registration with Commodity Boards
Registration with Income Tax Authorities
8. COMPANY REGISTRATION ONLINE
Types Of Business Structures
One Person Company (OPC)
Limited Liability Partnership (LLP)
Private Limited Company (PLC)
Public Limited Company (PLC)
Why Is It Important To Choose The Right Business Structure?
How To Register A Company In India?
Documents Required For Company Registration
Benefits Of Company Registration In India
Name And Capital Of The Company
Selection of Company Name
Capital of the company
Compliances to be followed by the Company
9. REGISTRATION PROCESS FOR EXPORTS IN INDIA
Registration Formalities for Exports
10. EXPORT MODES
Indirect export
Direct export
Cooperative export
Partner mindshare
Indirect export modes
Export buying agent (export commission house)
Broker
Export management company/export house
Trading company
Piggyback
Direct export modes
Distributors
Agents
Choice of an intermediary
Evaluating international distribution partners
Termination of contracts with distribution partners
Cooperative export modes/export marketing groups
11. EXPORT FINANCE
What Is Export Finance?
Why Should One Choose Export Financing?
How Does Export Financing Work?
IMPORTANCE OF EXPORT FINANCE
Types of Export Financing
Pre-Shipment Export Finance
Export Finance Against Collection Of Bills
Deferred Export Finance
Export Finance against Allowances and Subsidies
PRE-SHIPMENT FINANCE
MEANING
SALIENT FEATURES OF PRE-SHIPMENT FINANCE
Eligibility
Purpose
Documents required
Forms / Methods of Packing Credit
Amount of packing credit
Period of packing credit
Rate of interest
Loan agreement
Maintenance of accounts
Disbursement of loan
Monitoring the use of advance
Repayment
POST SHIPMENT FINANCE
MEANING
SALIENT FEATURES
Eligibility
Purpose
Documents required
Period of Post-Shipment Finance
Rates of Interest
Loan Agreement
Maintenance of Accounts
Disbursement of Loan Amount
METHODS OF PAYMENT
Open Account
Bank Draft
Cash Against Documents (C.A.D.)
Foreign Bills of Exchange
Letter of Credit
EXPORT-IMPORT BANK OF INDIA (EXIM BANK)
MEANING
OBJECTIVES OF EXIM BANK
FUNCTIONS OF EXIM BANK
Fund Based Assistance
Non-Funded Assistances
EXPORT CREDIT AND GUARANTEE CORPORATION OF INDIA LTD. (ECGC)
MEANING
OBJECTIVES OF ECGC
GUARANTEES OF ECGC
Packing credit guarantee
Post-shipment export credit guarantees
Export finance guarantee
Export production finance guarantee
Export performance guarantee
12. BANKING REGULATION GOVERNING EXPORTS
Realization and repatriation of proceeds of export of Goods / software / services
Manner of receipt and payment
Exchange Earners’ Foreign Currency Account (EEFC Account)
Exports to neighboring countries by road, rail or river
Border trade with Myanmar
Project Exports and Service Exports
Export of goods through Customs ports
Export of goods/ software done through EDI ports
Export of goods through Post
Third party export proceeds
Grant of EDF waiver
Receipt of advance against exports
EDF Approval for Trade Fair/Exhibitions abroad
Delay in submission of shipping documents by exporters
Direct dispatch of documents by the exporter
Change of buyer/consignee
Export of goods by Special Economic Zones (SEZs)
Extension of time
Write-off of unrealized export bills
Export claims
Write off in cases of payment of claims by ECGC and
Private insurance companies regulated by Insurance
Regulatory and Development Authority (IRDA)
Write-off – relaxation
Exporters’ Caution List
Issue of Guarantees by an Authorised Dealer
13. EXPORT PAYMENT TERMS
Methods of Payment in International Trade
Open account
Documentary collection
Cash Against Documents
Document Against Acceptance
Letter of Credit
Cash in Advance
Consignment
14. EXPORT PRICING AND COSTING
What are Export Pricing?
FACTORS DETERMINING EXPORT PRICING
Cost
Demand
Substitute Product
Quality of product
Competition
Tax Burden
Composition of consumers
Product Differentiation and Brand Image
Nature of Purchase
Quality and Price Relationship
Trade Restrictions
Cost of the Product–How is it Calculated
Objectives of Export Pricing
Survival
Maximum Sales Growth
Maximum Current Profit
Establishing Leadership
Importance of Export Pricing
Export Pricing Strategies
Skimming pricing strategy
Penetration pricing strategy
Probe pricing strategy
Follow the Leader Pricing Strategy
Differential Trade margins pricing strategy
Standard export pricing strategy
Differential pricing strategy
Market pricing strategy
Transfer pricing strategy
Trial Pricing
Flexible- Price Strategy
EXPORT PRICING QUOTATIONS
EXPORT COSTING
What is Job Costing?
Features of Job Costing
What is Process Costing?
Features of Process Costing
What is Standard costing?
Marginal Cost
What are the need for Marginal costing?
Marginal Costing technique
15. FOREIGN SALES AGENT
MEANING
EXPORT AGENT
TYPES OF EXPORT AGENTS
Commission agents
Brokers
Commercial agents
Auction companies
Buying agents
AGENCY CONTRACT
IDENTIFYING FOREIGN AGENTS
16. EXPORT BENEFITS
EXPORT PROMOTION SCHEMES
Exports from India Scheme
DUTY EXEMPTION & REMISSION SCHEMES
Advance Authorization Scheme
Advance Authorization for annual requirement
Duty Free Import Authorization (DFIA) Scheme
Duty Drawback of Customs / Central Excise Duties/ Service Tax
Rebate of Service tax through all industry rates
EPCG SCHEME
Zero duty EPCG scheme
Post Export EPCG Duty Credit Scrip Scheme
EOU/EHTP/STP & BTP SCHEMES
OTHER SCHEMES
Towns of Export Excellence (TEE)
Rebate of duty on “export goods” and “material”
used in manufacture of such goods
Export of goods under Bond i.e. without payment
of excise duty
Market Access Initiative (MAI) Scheme
Marketing Development Assistance (MDA) Scheme
Status Holder Scheme
17. EXPORT INCENTIVES
What are Export Incentives?
How Export Incentives work in India?
Types of Export Incentives
Exports from India scheme
Duty exemption/remission schemes
Advance Authorisation Scheme
Advance License for Annual Requirement
Duty-free import authorisation
Duty drawback scheme
RoSCTL
Export promotion capital goods scheme
Zero duty EPCG scheme
What is EPCG Scheme?
EPCG Scheme under GST
How EPCG Scheme works?
Export Obligation under EPCG Scheme
How to apply for an EPCG License?
EPCG Scheme for Manufacturing Exporters
EPCG Scheme for Service Providers
Benefits of EPCG authorization
EOU/EHTP/STP/BTP Schemes
Objectives of the EOU scheme
Benefits of Export Oriented Units
Other Export Benefits in India
18. EXPORT CONTRACT
Meaning of Export Contract
Elements of Export Contract
19. FOREIGN CURRENCY & EXCHANGE
What is foreign currency for a business?
Why is foreign currency important?
Billing foreign customers
Currency mismatches
Hard vs soft currency
What is Foreign Exchange?
Foreign Exchange
How are currency prices determined?
Foreign Exchange rate policies in India
Operation of Forex Markets
Commonly traded currencies
What is the Euro to Dollar (EUR/USD)?
Examples of the EUR/USD Exchange Rate
What is a Foreign Exchange Gain/Loss?
Realized and Unrealized Foreign Exchange Gain/Loss
Realized Gains/Losses
Unrealized Gains/Losses
Recording Foreign Exchange Transactions
What is the International Fisher Effect (IFE)?
How to Calculate the Fisher Effect
The Relevance of the International Fisher Effect
Fisher Effect vs. International Fisher Effect
What is the US to CAD Currency Cross?
Market Participants
20. PACKING AND LABELING OF GOODS
Introduction
Packaging
Types of Export Packaging
Boxes and Crates
Pallets
Drums
Containers
Loose or unpacked packaging
Export packaging for all transportation modes
Air Freight
Sea Transportation
Rail Freight
Road Freight
Packing note
What is a packing note?
Purpose of a packing note
Content of a packing note
What is an Export Packing List?
Contents in the Format for Export Packing List
Export Packing list and Type of Shipment
Labeling
Why labeling and marking in Export business?
21. EXPORT CREDIT INSURANCE
What is Export Credit Insurance?
What Export Credit Insurance does for exporters?
ECGC–Export Credit Guarantee Corporation of India
What is Export Credit Guarantee Corporation?
What does an ECGC do?
How does ECGC help the exporters?
What’s ECGC's Export Credit Insurance scheme
& its role in the export business?
How does ECGC's Export Credit Insurance help Indian Exporters?
Short-term, turnover-based services
Short-term, exposure-based services
Medium- and long-term services
Pro-Tips
22. EXPORT DOCUMENTATION AND PROCEDURES
STEP 1: Enquiry
STEP 2: Proforma generation
STEP 3: Order placement
STEP 4: Order acceptance
STEP 5: Goods readiness & documentation
STEP 6: Goods removal from works
STEP 7: Documents for C & F agent
STEP 8: Customs Clearance
STEP 9: Document Forwarding
STEP 10: Bills negotiation
Step 11: Bank to bank documents forwarding
STEP 12: Customs obligation discharge
STEP 13: Receipt of Bank certificate
23. EXPORT FROM INDIA TO CIS COUNTRIES
Commonwealth of Independent States (CIS)
Introduction
Major Trading Partners in the CIS Region
Major Items of Exports
India CIS Trade Relations–Armenia
India CIS trade relations – Georgia
India CIS Trade Relations – Ukraine
India CIS Trade Relations – Latvia
India CIS Trade Relations – Estonia
India CIS Trade Relations – Lithuania
India CIS Trade Relations – Belarus
24. EXPORT TO SAARC MEMBER COUNTRIES
Introduction
South Asian Free Trade Area (SAFTA)
Preferential Trade Agreement (PTA)
Export to Afghanistan
Export to Bangladesh
Export to Bhutan
Export to Sri Lanka
Export to Nepal
Export to Maldives
Export to Pakistan
25. GST ON EXPORT OF GOODS & SERVICES
Introduction
What is Export of Goods under GST?
How are Exports treated under GST Law?
What is Zero rated Supply? – Sec.16 (1) IGST ACT
How Exporter can claim refund for Zero rated supply?
How Exporter can claim refund under Option -1 LUT Method?
Who can export without payment of IGST by
furnishing only Letter of Undertaking (LUT) in place of Bond?
Procedural Requirement for LUT Method
How Exporter can claim refund under Option -2 Refund of IGST?
Attention Exporters
Changes in Export Procedures
Export under factory stuffing procedures
How tax will be charged when sold to merchant Exporter or
in the course of Penultimate Sale
Notification No. 41/2017-Integrated Tax (Rate) 23rd October 2017
What is Deemed Export?
Notification No. 48/2017-Central Tax
26. GST ON EXPORT OF SERVICES ABROAD:
FIVE INTERESTING POINTS
Meaning of Export
Treatment of Export under GST
Zero Rated Supply
Routes/Ways to claim the refund
Process for claiming a GST refund
Analysis and Features
27. GST TAX RATE FOR EXPORTS
What is GST Tax rate for Exports?
GST on Export: How are Exports Taxed Under GST?
How are Exports Taxed Under GST?
Export Under Bond or LUT
(Letter of Undertaking) Without Payment of IGST
Letter of Undertaking (LUT)
What is LUT?
Who is Eligible to Export under LUT?
What is the Validity of LUT?
How is LUT Filed?
Export Bond under GST
What is Export Bond Under GST?
Who is Eligible to Export under Bond?
Export by Paying IGST and Claiming Tax Refund Later
What are Zero Rated Supplies under GST?
What are Deemed Exports Under GST?
What are Documents and procedures for exporters under GST?
Exporting goods: documents and procedures
Exporting services: documents and procedures
28. EXPORT PROMOTION ORGANIZATION
INTRODUCTION
EXPORT PROMOTION COUNCILS (EPCs)
ROLE / FUNCTIONS OF EPCS
COMMODITY BOARDS
MEANING
ROLE /FUNCTION OF COMMODITY BOARD
Issue of certificate or origin
Collection of information
Supplying information
Organizing Seminars
Trade Fairs & Exhibitions
Recommendation to Government
Inviting Trade Delegations
Sending Delegations Abroad
Consultancy Services
Exploration of Overseas Markets
Developing Export Consciousness
Other Functions
STATE TRADING CORPORATION (STC)
Meaning
Objectives of Stc
Functions (Services) of Stc
FEDERATION OF INDIAN EXPORT ORGANIZATIONS (FIEO)
Assistance to Exporters
CHAMBERS OF COMMERCE
Role /Functions of Chamber of Commerce
Issue of certificate of origin
Collection of information
Supplying information
Organising seminars
Trade fairs & exhibitions
Recommendations to government
Inviting Trade delegations
Sending delegation abroad
Consultancy services
Exploration of overseas Markets
Developing export consciousness
Other functions
INDIA TRADE PROMOTION ORGANIZATION (ITPO)
MEANING
OBJECTIVES OF ITPO
FUNCTIONS AND SERVICES OF ITPO
Organizing trade fairs and exhibitions in India and abroad
Giving publicity to trade fair and exhibition
Booking of space in Overseas Trade Fairs
Inviting Trade Delegations from Abroad and
sending Indian Trade Delegation Abroad
Providing consultancy service to Indian exporters
Organizing seminars and workshops
Miscellaneous Functions
29. LIST OF EXPORT PROMOTION COUNCILS/COMMODITY BOARDS/EXPORT DEVELOPMENT AUTHORITIES
