EXPORT IMPORT NORMS

 Exports and Imports – ‘Free’, unless regulated

(a) Exports and Imports shall be ‘Free’ except when regulated by way of
‘prohibition’, ‘restriction’ or ‘exclusive trading through State Trading
Enterprises (STEs)’ as laid down in Indian Trade Classification
(Harmonised System) [ITC (HS)] of Exports and Imports.
(b) Further, there are some items which are ‘free’ for import/export, but subject
to conditions stipulated in other Acts or in law for the time being in force.

 Indian Trade Classification (Harmonised System) [ITC (HS)] of

Exports and Imports

(a) ITC (HS) is a compilation of codes for all merchandise / goods for export/
import. Goods are classified based on their group or sub-group at 2/4/6/8
digits.
(b) ITC (HS) is aligned at 6 digit level with international Harmonized System
goods nomenclature maintained by World Customs Organization.
However, India maintains national Harmonized System of goods at 8 digit
level.

(c) The import/export policies for all goods are indicated against each item in
ITC (HS). Schedule 1 of ITC (HS) lays down the Import Policy regime while
Schedule 2 of ITC (HS) details the Export Policy regime.

 Compliance of Imports with Domestic Laws

(a) Domestic Laws/ Rules/ Orders/ Regulations / Technical specifications/

environmental/ safety and health norms applicable to domestically
produced goods shall apply, mutatis mutandis, to imports, unless
specifically exempted.
 (b) However, goods to be utilized/ consumed in manufacture of export
products, as notified by DGFT, may be exempted from domestic
standards/quality specifications.

 Authority to specify Procedures

DGFT may specify procedure to be followed by an exporter or importer or by
any licensing/Regional Authority (RA) or by any other authority for purposes of
implementing provisions of FT (D&R) Act, the Rules and the Orders made there
under and FTP. Such procedure, or amendments, if any, shall be published by
means of a Public Notice.

 Importer-Exporter Code (IEC)

An IEC is a 10-digit number allotted to a person that is mandatory for
undertaking any export/import activities. Now the facility for IEC in electronic
form or e-IEC has also been operationalised.

 Following are the required details /documents to be submitted/ uploaded along

with the application for IEC:

1. Details of the entity seeking the IEC:

 PAN of the business entity in whose name Import/Export would be

done (Applicant individual in case of Proprietorship firms).
 Address Proof of the applicant entity.
 LLPIN /CIN/ Registration Certification Number (whichever is
applicable).
 Bank account details of the entity. Cancelled Cheque bearing
entity’s pre-printed name or Bank certificate in prescribed format
ANF2A (I).
 2. Details of the Proprietor/ Partners/ Directors/ Secretary or Chief
Executive of the Society/ Managing Trustee of the entity:

 PAN (for all categories)

 DIN/DPIN (in case of Company /LLP firm)

3. Details of the signatory applicant:

 Identity proof
 PAN
 Digital photograph

 Only one IEC against one Permanent Account Number (PAN)

Only one IEC is permitted against on Permanent Account Number (PAN). If
any PAN card holder has more than one IEC, the extra IECs shall be disabled.

 Principles of Restrictions
DGFT may, through a Notification, impose restrictions on export and import, necessary
for: -

a) Protection of public morals;

b) Protection of human, animal or plant life or health;
c) Protection of patents, trademarks and copyrights, and the prevention
of deceptive practices;
d) Prevention of use of prison labour;
e) Protection of national treasures of artistic, historic or archaeological
value;
f) Conservation of exhaustible natural resources;
g) Protection of trade of fissionable material or material from which they
are derived;
h) Prevention of traffic in arms, ammunition and implements of war.
 IMPORT EXPORT DOCUMENTS

Import and Export documents can be classified as follow :

Documents

Export Import
Documents Documents

Commercial Regulatory
Documetns Documents

 Export Documents
1) Commercial Documents
The commercial documents includes the following documents.
a) Commercial Invoice :
This is the first basic and the only complete document in an export
transaction. It is, in fact, a document of contents containing information
about goods. Harmonized System Nomenclature (HSN), price charged,
 the terms of shipment and marks and numbers on the packages
containing the merchandise.
The exporter needs this document for other purposes also such as:

i. Obtaining export inspection certificate

ii. Getting excise clearance
iii. Getting customs clearance and
iv. Securing such incentives as cash compensatory support (CCS)
and import license.

This document is prepared at both the pre-shipment and post-shipment

stages.
Besides commercial invoice, there is a proforma invoice also. It is a
temporary commercial invoice which is sent by the exporter to the
importer. It covers contemplated shipment which may or may not be made
in future.
The importer requires this document for obtaining an import license and
opening a letter of credit in favour of the exporter. With such obvious
importance of proforma invoice, the exporter should cultivate a habit of
sending proforma invoice to the importer, even if the same is not
demanded.

b) Bill of Lading :
Bill of lading (B/L) is a document which is issued by the shipping company
acknowledging that the goods mentioned therein are either being shipped
or have been shipped. This is also an undertaking that the goods in like
order and condition as received will be delivered to the consignee,
provided that the freight specified therein has been duly paid.
 Bill of lading serves three distinct functions:
i. It is an evidence of the contract of affreightment (transport).

ii. It is a receipt given by the shipping company for cargo

received by it.

iii. It is a document of title to the goods shipped.

The bill of lading gives the details about the exporter, carrying vessel,
goods shipped, port of shipment, destination, consignee and the party to
be notified on arrival of the goods at destination. Bill of ladings is made
the sets.

c) Airway Bill :
In air carriage, the transport document is known as the airway bill. This
document performs three functions of a forwarding note for the goods,
receipt for the goods tendered, and authority to obtain delivery of goods.
Since it is non-negotiable, so it does not carry the same validity as a bill
of lading for sea transport carries.
d) Bill of Exchange (B/E) :
Bill of exchange is an instrument or draft used for the payment in
international / export business. It is an instrument in writing containing an
unconditional order, signed by the marker, directing a certain person to
pay a certain sum of money only to or to the order of a person or to the
bearer of the instrument. The person to whom the bill of exchange is
addressed is to pay either on demand or at a fixed or a determinable
future.
There are three parties involved in a bill of exchange:
1. The Drawer (Exporter) :
The person who makes and executes the B/E or say, the person
to whom payment is due
.
 2. The Drawee (Importer) :
The person on whom the B/E is drawn and who is required to meet
the terms of the document.
3. The Payee (Exporter or Exporter’s Bank) :
The party to receive the payment.

e) Letter of Credit :
It is a written instrument issued by the buyer’s (importer’s) bank,
authorising the seller (exporter) to draw in accordance with certain terms
and stipulating in a legal form that all such bills (drafts) will be honoured.
Letter of credit provides the exporter with more security than open
accounts or bills of exchange.
A commercial letter of credit involves the following three parties :
i. The opener or importer – the buyer who opens the credit

ii. The issuer – the bank that issues the letter of credit.

iii. The beneficiary – the seller in whose favour the credit is

opened.

Based on differing conditions, letters of credit may be of the

following types :
a) Revocable and Irrevocable :
In case of revocable letter of credit, the buyer or issuer can cancel
or change an obligation at any time prior to payment without prior
notice to the exporter or seller. When the letter is irrevocable, the
buyer cannot cancel or change obligation without the exporter’s
permission.
b) Confirmed and Unconfirmed :
In case of confirmed letter of credit, the payment is guaranteed by
the issuing bank. When the letter is unconfirmed, no such
guarantee is given by the bank.
 c) With and Without Recourse :
With recourse means if the buyer fails to pay the bank after a
specified period, the bank can have recourse on the exporter.
There is no such provision in the letter of credit without recourse.

2) Regulatory Documents :
There are two types of regulatory documents :
i. Documents needed for registration, and

ii. Documents needed for shipment.

 The first category documents include applications and other

supporting documents for obtaining :
(i) Code number from the Reserve Bank of India (RBI),

(ii) Importers and exporters’ code numbers from the Chief Controller
of Imports and Exports,

(iii) Registration-cum-membership certificate (RCMC), etc.

 The documents needed for shipment of goods include the

following :
a) GR Form :
It is required to be filled in duplicate for all exports other than by post.
Both of the copies have to be submitted to the customs authorities at the
port of shipment. They will retain the original copy to be sent to the
Reserve Bank of India directly.

They will return the duplicate copy which is submitted to the negotiating
bank along with other documents after shipment of goods. The
negotiating bank sends the duplicate copy to the RBI after the export
proceeds have been realised.
b) PP Form :

Exports to all countries by parcel post (PP), except when made on ‘value
payable’ or ‘cash on delivery’ basis should be declared on PP forms.

c) VP/COD Form :

It is required to be filled in one copy for exports to all countries by post

parcel under arrangements to realise proceeds through postal channels
on ‘value payable’ or ‘cash on delivery’ basis.

d) EP Form :

Shipment to Afghanistan and Pakistan other than by post should be

declared on EP forms.

e) SOFTEX Form :

It is required to be prepared in triplicate for export of computer software

in non-physical form.

f) Shipping Bill :

The shipping bill is the main document on the basis of which the
custom’s permission for export is given. Post parcel consignment
requires customs declaration form to be filled in. There are three types
of shipping bills available with the customs authorities.

Shipping bills can be of the following categories :

 Free Shipping Bill :

It is used for export of goods for which there is no export duty.

 Dutiable Shipping Bill :

 Printed on yellow paper, it is used in case of goods which are
subject to export duty/cess.
 Drawback Shipping Bill :
It is usually printed on green paper and is used for export of goods
entitled to duty drawback.
 Marine Insurance Policy :
It is the basic instrument in marine insurance. A marine policy is
a contract and a legal document which serves as evidence of the
agreement between the insurer and the assured. The policy must
be produced to press a claim in a court of law. An exporter must
also put up the marine insurance policy as a collateral security
when he gets an advance against his bank Credit.

2. Import documents

a) Consular Invoice :
It is usually issued on the specified form by the consulate of the
importing country situated in the exporting country. It gives a declaration
about the true value of goods shipped. The customs authorities of
importing company charge valorem based on the value mentioned on
consular invoice.

b) Certificate of Origin :
This certificate is issued by the independent bodies like chamber of
commerce or export promotion council in the exporting country. This is
a certification that the goods being exported were actually produced in
that particular country.

c) GSP Certificate of Origin :

 Goods which get the benefit preferential import-duty treatment in
countries which implement the Generalised System of Preferences
(GSP) should be accompanied by the GSP certificate of origin. This
certificate is given on the forms prescribed by the importing countries.

d) Customs Invoices :
It is also made out on a specified form prescribed by the customs
authority of the importing country. The details given on the document will
enable the customs authority of the importing country to levy and charge
import duty.

e) Certified Invoice :
This is the self-certified invoice by the exporter about the origin of the
goods.
MODES OF THE ENTRY INTO UNITED STATES MARKET

For a corporation, the minimum is the certificate/articles of incorporation, bylaws

and an action of the incorporator (naming the initial board and officers). For an
LLC, the minimum is the certificate of formation and limited liability company
agreement. It’s usually a good idea to add a few things to the basic documents,
such as a form of confidentiality and invention assignment agreement (for officers,
employees and contractors), and an option plan

 Make the necessary filings with the state in which you decide to form your
company (usually Delaware)

 Pay some minor fees to the state of incorporation

 Hire a service company (CSC and CT Corp are the most common, but there
are many others) to serve as the company’s “agent for service of process”
in the state in which you decide to form it.

Depending on who is involved and whether anyone is investing, you might have
some securities filings, too. None of this is incredibly complex, but there are lots
of ways to mess up, some of which have very bad consequences. So it’s best not
to do it as a DIY project. Find a lawyer and pay for a corporate filing service to
handle the filings for you (again, CT Corp. and CSC are the best known but there
are many others).

U.S. Regulations

When the company form a U.S. entity, company create a legal person in the
U.S. That means that some activities abroad may come under U.S. regulations
that wouldn’t apply if no U.S. person were involved. There are two types of raise
issues – the Foreign Corrupt Practices Act and U.S. “export” regulations.

Foreign Corrupt Practices Act (FCPA)

The federal Foreign Corrupt Practices Act basically prohibits U.S. persons from
bribing foreign officials, political parties and party officials to obtain or retain
business, including bribes paid through intermediaries. It allows payments that
merely “expedite” a routine official action (such as clearing a shipment through
customs that is legally entitled to be cleared). If we form an entity in the U.S., both
the entity and its directors, officers and employees, when acting on its behalf, are
subject to the FCPA, even if all operations and personnel are located outside the
U.S. We need to form a Delaware corporation and then bribe a local official to
“overlook” some building code violations in our office, we have violated the
FCPA. By contrast, if the company is in India and did the same thing, U.S. law
would not apply. The FCPA is a criminal statute, so the consequences of violating
it are potentially very serious. The federal government has enforced the FCPA
very aggressively in recent years.

Export Regulations

The United States has a very complicated set of laws and regulations governing
the “export” of certain technologies from the U.S., as well as other commercial
dealings between U.S. persons and certain countries (especially Cuba, Iran and
North Korea). These laws normally don’t apply to foreign national’s resident
outside the United States, except to the extent they actually conduct business in
the U.S

Tax

The two entities are most likely to use to “incorporate” a business in the U.S. are
the corporation and the LLC. The equity holders in a corporation are called
shareholders or stockholders and the equity holders in an LLC are called
members. From a non-tax perspective, the LLC is generally preferable because it
is more flexible. For example, an LLC can have a board of directors and officers
if that makes sense, but it can also be managed directly by its members.
The normal income tax treatment of corporations and LLCs is very
different. Corporations are normally considered to be a separate taxpayer. That
means that the corporation pays income tax on its income. When it pays dividends
to its stockholders, they are taxed again on receiving the dividends. By contrast,
LLCs are normally not taxed separately. Rather, they “pass through” all of their
tax attributes (income, deductions, credits etc.) to their members, who then pay
tax individually. A corporation can make an election to be taxed on a pass-through
basis. This is called an “s” election and corporations that make it are referred to
as “s” corporations. Nonresident foreigners are not allowed to hold stock in an “s”
corporation, however, so it’s not an option for Indian company.

As a rule, venture backed startups (and startups that hope to be venture backed)
form as taxable “c” corporations, rather than as pass-through LLCs. There are
several reasons for this:

 Venture capital firms do not like “pass through” taxation because it can
complicate life for them, particularly if they have pension funds or university
endowments as investors (most of them do).

 Companies whose shares are publicly traded are almost always taxable
corporations (there’s few advantages and some disadvantages to being
anything else).

 People forming tech startups usually plan to profit from the endeavor by
selling their equity in the business, either in a sale of the company or in a
public market after an IPO. Since they never plan for the company to pay
dividends, it doesn’t bother them that they would get taxed twice (the
corporation pays tax on its income and then the shareholder pays tax on
receiving the dividend) if it did.

Now that we’ve reviewed the available entities, let’s review how the U.S. taxes
nonresident foreign nationals. First, it taxes income that is “effectively connected”
with a U.S. business roughly the same way it would tax a U.S. citizen or resident. If
that income results from an interest in an LLC that “passes through” its tax items
to its members, the LLC is required to make a “withholding” payment to the federal
government to cover the member’s liability. Second, certain categories of “U.S.
source” passive income (such as dividends, royalties and interest) are subject to
a flat 30% tax. This tax is, again, enforced by a requirement that the U.S. payer
withhold it at the source. On the other hand, capital gains (e.g. from the sale of
stock) are generally not taxed.

Both of these taxes are modified by a tax treaty between the U.S. and India. In
particular, the rate of the flat tax on passive income is reduced to 15 or 25%
(depending on corporate structure) for dividends, 10 or 15% (again, depending on
corporate structure) for interest, and 15% for royalties. One unusual twist in the
U.S. India tax treaty is that it gives particularly favorable treatment to income from
consulting or technical services that are ancillary to the use of licensed
technology. So it might be beneficial to develop the technology in India, license it
to the U.S. entity, and then provide consulting/technical services (such as software
maintenance and updates) for a fee. But it is worth reemphasizing that the U.S.
doesn’t tax capital gains earned by nonresident foreign nationals. So if there is no
plan to move to U.S. at any point during the development of the business and your
ultimate goal is a capital “exit” (i.e. a sale of the company or a sale of your stock in
an IPO or a private secondary market), the best strategy might be to use a taxable
corporation.
Summary of Key Visas Available to Indian Small Business Owners, Investors
and Entrepreneurs in United States of America

H-1B EB-5 Visas

L-1 Visas E-Visas
Visas

Visa available to
✔ ✔ ✖ ✔
Indian nationals

Ability of
dependent
✔ ✖ ✔ ✔
Spouse to work
in US

Can the visa be

renewed into
perpetuity ✖ ✖ ✔ ✔
assuming I re-
qualify?

Sufficient to Sufficient to fund

Either USD
Minimum operate valid business
500,000.00 or
investment foreign business N/A enterprise,
USD
Required and US office or generally around
1,000,000.00
business entity USD 100,000.00

✖ ✔
✖

Immigrant visa Transition to EbB-5 visa initially

Can lead to ✖
status green card status issued for a
green card after
through EB5 conditional two
one year
program possible year period.
L1 Visa

An L-1 visa is a visa document used to enter the United States for the purpose of
work in L-1 status. It is a non-immigrant visa, and is valid for a relatively short
amount of time, from three months (for Iran nationals) to five years (India, Japan,
Germany), based on a reciprocity schedule. With extensions, the maximum stay is
seven years.

L-1 visas are available to employees of an international company with offices in

both the United States and abroad. The visa allows such foreign workers to
relocate to the corporation's US office after having worked abroad for the company
for at least one continuous year within the previous three prior to admission in the
US. The US and non-US employers must be related in one of four ways: parent
and subsidiary; branch and headquarters; sister companies owned by a mutual
parent; or 'affiliates' owned by the same or people in approximately the same
percentages.

Spouses of L-1 visa holders are allowed to work without restriction in the US (using
an L-2 visa) once EAD is granted, and the L-1 visa may legally be used as a
stepping stone to a green card under the doctrine of dual intent.

H1B Visa

The H-1B is a non-immigrant visa in the United States under the Immigration and
Nationality Act, section 101(a)(17)(H). It allows U.S. employers to temporarily
employ foreign workers in specialty occupations. If a foreign worker in H-1B status
quits or is dismissed from the sponsoring employer, the worker must either apply
for and be granted a change of status to another non-immigrant status, find another
employer (subject to application for adjustment of status and/or change of visa), or
leave the U.S.

The regulations define a "specialty occupation" as requiring theoretical and

practical application of a body of highly specialized knowledge in a field of human
endeavor including but not limited to biotechnology, chemistry, architecture,
engineering, mathematics, physical sciences, social sciences, medicine and
health, education, law, accounting, business specialties, theology, and the arts,
and requiring the attainment of a bachelor's degree or its equivalent as a
minimum (with the exception of fashion models, who must be "of distinguished
merit and ability"). Likewise, the foreign worker must possess at least a bachelor's
degree or its equivalent and state licensure, if required to practice in that field. H-
1B work-authorization is strictly limited to employment by the sponsoring employer.

E-VISAS

Treaty Trader (E-1), Treaty Investor (E-2), Australian Specialty Occupation

Worker (E-3)

The E category includes treaty traders and investors who come to the U.S. under
a treaty of commerce and navigation between the U.S. and the country of which
the treaty trader or investor is a citizen or national. This category also includes
Australian specialty occupation workers.

Treaty Traders (E-1) and Treaty Investors (E-2)

Treaty traders pursue substantial trade in goods, including but not limited to
services and technology, principally between the U.S. and the foreign country of
which they are citizens or nationals. Treaty investors direct the operations of an
enterprise in which they have invested, or are actively investing, a substantial
amount of money.

Before entering the U.S., treaty traders or investors must apply for and receive an
E-1 or E-2 visa from a U.S. Consulate or Embassy overseas. However, a U.S.
company may also request a change of status to E-1 or E-2 for a nonimmigrant
that is already in the U.S. USCIS processes change of status and extensions of
stay requests for nonimmigrants whose companies have filed such petitions.

EB5 VISA
The EB-5 visa provides a method of obtaining a green card for foreign nationals
who invest money in the United States. To obtain the visa, individuals must invest
$1,000,000 (or at least $500,000 in a Targeted Employment Area - high
unemployment or rural area), creating or preserving at least 10 jobs for U.S.
workers excluding the investor and their immediate family. Initially, under the first
EB-5 program, the foreign investor was required to create an entirely new
commercial enterprise; however, under the Pilot Program investments can be
made directly in a job-generating commercial enterprise (new, or existing -
"Troubled Business"), or into a "Regional Center" - a 3rd party-managed
investment vehicle (private or public), which assumes the responsibility of creating
the requisite jobs. Regional Centers may charge an administration fee for
managing the investor's investment.

If the foreign national investor's petition is approved, the investor and their
dependents will be granted conditional permanent residence valid for two years.
Within the 90-day period before the conditional permanent residence expires, the
investor must submit evidence documenting that the full required investment has
been made and that 10 jobs have been maintained, or 10 jobs have been created
or will be created within a reasonable time period.

SUPPORTING INTUITIONS TO FACILITATE IMPORT/EXPORT

1. Functions and role of EPC's ( Export Promotion Councils )

1. To appraise Govt. on export growth, necessary data and of exporters

problems in general trade and advise Govt.. to remove such difficulties and
resolve trade disputes.

2. To arrange in an organised manner delegates to go abroad to promote

exports of specific products or group of products and circulate the reports
of visits to its members to help their exports

3. To establish contacts with overseas buyers, project associates, locate, right

suppliers and buyers and circulate the trade enquiries among members.
 4. To conduct market surveys, researches and publish the results through its
bulletins and publications in different markets

5. To provide credibility reports on suppliers' status, technical competence and

help in tie-ups

6. To offer valuable advice on finance, banking, insurance, joint ventures,

customs formalities etc.

7. To arrange buyers-sellers meet, supply of indigenous and imported raw

materials and help in shipping and transport problems.

8. To chalk out plans for display or advertising of member's products in

overseas markets

9. To seek foreign offices of EPC's help to exporters in consolidating the

existing exports and diversifying into new products by opening new offices
and explore export potentials and liaise with industry, trade, Govt. and trade
bodies.

10. To render all assistance in exports finance.

Other various service and support institutes to facilitate exports:

Govt. of India has also created various other services and support institutes to
facilitate the task of promoting exports through export finance, market research,
export credit insurance, resource personnel for exports, publicity, packaging,
quality control, transport, etc.

2. Commodity Boards

These are organisations set up for the development of certain commodities for
export and deal with all problems of production, development and marketing of the
commodities concerned.

Objectives and Functions

 1. To advice the Govt. on policy matters such as fixing quotas for exports,
signing trade agreements, etc.

2. To undertake promotional activities such as participation in exhibitions and

trade fairs, opening foreign officers, conduct market surveys and
sponsoring trade delegations, etc.

3. Export Credit Guarantee Corporation (ECGC) This has been established in

1964 with head office in Mumbai and controlled by ministry of commerce
government of India.( Please refer Vol. Export Import Finance).

4. Indian Institute of Foreign Trade (IIFT)

India needed trained and skilled personnel for the development of export trade and
IIFT was set up in 1963 as an autonomous body registered under Societies
Regulation Act.

Main functions of IIFT

1. To train personnel at various levels for export trade

2. To collect data and documents an all aspects of export trade

3. To ascertain characteristics of foreign markets and consumer preferences

4. To determine scope and techniques to be adopted for increased export

trade

5. To provide consultancy service to companies in matters relating to exports

6. To house library with periodicals from UNO/FATT/UNCTAD etc.

7. To publish trade bulletins, trade reviews, journals etc. and disseminate

information concerning exports and export activities.

5. India Trade Promotion Organisation (ITPO)

It is a nodal agency of Indian Govt.. to provide a wide spectrum of services to
export trade and industry and act as catalyst for growth of India's export trade.

Activities of ITPO

1. Identifies and nurtures specific export products with long range growth
prospects

2. Organises various trade fairs and exhibitions in India and potential foreign
countries

3. Cultivates overseas buyers and establishes durable contacts between,

Indian suppliers and overseas buyers

4. Organises buyers sellers meets seminars conferences, workshops with a

view to bring buyers and sellers together

5. Organises India promotions with Department stores and order Houses

abroad

6. Conducts in house and need based research on export trade and promotion

7. Manages the extensive trade five complete pragati maidan Delhi and
establishes such fair facilities in various states to promote exports from India

8. Overseas offices of ITPO pursues investment opportunities besides

activities aimed at promoting India's exports.

9. Enlists the involvement and support of the state governments in India for
promotion of foreign trade.

6. Export Inspection council (EIC)

With the objective of exporting Indian goods of good quality with international
standards and for lending any dense in overseas buyers the government of India
passed export quality control and inspection Act 1963

(Please refer Export Finance Chapter VII and page 47)

Objectives and Activities of (EIC)

1. Consults trade and industry, conducts detailed discussions, studies of

buyers exacting needs and formulate standards for pre-shipment
inspection.

2. Comes out with various schemes of quality control, pre-shipment inspection

and self-certificate schemes

3. Establishes laboratories and test houses for export products

4. Recommends to Govt.. of India the commodities for quality control ,and

inspection type and organises to conduct the same.

7. Indian Institute of Packaging (IIP)

Govt. of India in collaboration with the industry has set up IIP in 1966 with Mumbai
as its headquarters to match the packaging standards of export goods with that of
international standards and sophistication

Aims and functions of IIP

1. To stimulate consciousness for good packaging

2. To undertake research on raw materials to be used for packaging

3. To have full information on latest developments in packaging

4. To organise training programmes for personnel of packaging and packing

technology

8. Indian Council of Arbitration (ICA)

Govt. of India has set up in 1965 ICA as Apex arbitration body to solve disputes
between exporters and importers.

Objective and Functions

1. To promote and encourage amicable settlement of foreign trade disputes

 2. To arrange for amicable settlement of disputes through its constituent
members

3. To prepare and maintain panel of arbitrators

4. To propagate and popularize the idea of Arbitration

5. To collaborate with international organisations

9. Directorate General of Shipping

Directorate General of shipping was set up in 1949 with headquarters at Mumbai.

Objective and Functions

1. To deal with all matters relating to merchant shipping like navigation and
administration of merchant shipping etc.

2. To develop Indian shipping

3. To regulate ocean freight rates in export trade.

10. All India Shipper's Council

The Apex body titled All India shippers council was set up in Delhi with five regional
shippers organisation like Easter, Western, Southern, Northern and South
Western Shippers council to provide periods consultation with all parties
concerned on matters of common interest such as freight structure, conference
practices, conference lines like availability of shipping space, port facilities port
charges etc. for export import cargoes.

11. Department of Commercial Intelligence and Statistics

This body was established with its head office at Kolkata

Functions

1. Responsible for commercial intelligence collection, compilation and

publication of statistics of trade, tariff and shipping
 2. Maintains commercial library in Kolkata on trade disputes.

12. Central Advisory Council on Trade

Apart from the above there are consultative bodies such as central advisory council
on trade and zonal export import advisory committees have been created to
discuss various problems relating to export and import and suggest ways and
means for promoting exports trade. On the deliberations of such organizations the
Govt.. of India, frames and formulates its export and import promotion policies and
successful implementation of export schemes.

This was set up in 1978 by merging Board of trade and advisory council on trade
headed by Union Minister of Commerce. This consists of 28 members from
Reserve Bank of India, Exim Bank, Federation of Indian Exports Organisation
Member of parliaments and industrialists and hold office for two years.

Functions

1. To advise Govt. an export import policies and programmes and operations

of the same.

2. To organise export production

3. To organise and develop commercial services

13. Zonal Export Import Advisory Committees

These are set up as follows in four zones namely Northern, Southern, Eastern and
Western Zonal Export Import advisory committees Functions of the Zonal export
import advisory committees are

1. To consider difficulties and suggest measures in relations to the operation

of export import policies and procedures, programs and disbursement of
cash assistance.

2. To consider difficulties and suggest measures in matters relating to customs

clearance, shipping, credit insurance and export inspection.
PACKAGING AND LABELLING REGULATION IN INDIA

Packaging All pre-packaged commodities imported into India must

carry the following declarations on the label:
- name and address of the importer,
- generic or common name of the commodity packed,
- net quantity in terms of standard unit of weights and
measurement,
- month and year of packing in which the commodity is
manufactured, packed or imported,
- the maximum retail sales price (MRP) at which the
commodity in packaged form may be sold to the end
consumer.

Languages English and/or Hindi.

Permitted on
Packaging and
Labeling

Unit of All imported goods as well as transport documents must

Measurement show standard units of measurement and weight.

Mark of Origin Not mandatory, except in the case of foodstuffs and

"Made In" drinks and also where preferential import duties are
claimed.

Labeling The packaging and Labeling requirements for packaged

Requirements food products is laid down in the Part VII of the
Prevention of Food Adulteration (PFA) Rules, 1955, and
the Standards of Weights and Measures (Packaged
Commodities) Rules of 1977.
Specific
Regulations

In specific cases, the product label also has to contain:

 The purpose of irradiation and license number in

case of irradiated food

 Extraneous addition of coloring material

 Non-vegetarian food – must have a symbol of a

brown color-filled circle inside a brown square
outline prominently displayed on the package

 Vegetarian food must have a similar symbol of

green color-filled circle inside a square with a
green outline prominently displayed
Commercial and industrial norms in India

National Standards Bureau of Indian Standards(BIS) - Earlier

Organisations called as Indian Standards Institute (ISI)

Integration in the International The BIS is a founder member of

Standards Network the International Standard organization
(ISO) and of the International
Electrotechnical Commission (IEC)

For more details consult www.bis.org.in.

Obligation to Use Standards Although the standards proposed by the BIS

are 'voluntary' in nature and are not at all
mandatory, the Government of India has
enforced mandatory certification on various
products.

For the list of items brought under mandatory

certification please consult the website of the
Bureau of Indian Standards.

Classification of Standards The symbol of the standard is ISI. Every ISI

mark has a fixed format that carries the
Indian Standard number on top of the mark
based on the type of product.

Assessment of the System of Certification by the BIS is highly regarded in

Standardization India, and it can increase the sales potential
in this market.

Click here for ‘Procedure for Granting BIS

Certification'
Online Consultation of Bureau of Indian Standards (BIS)
Standards

Certification Organisations Quality Council of India

SUPPLY CHAIN ANALYSIS MANAGEMENT FOR DAIRY INDUSTRY

1. Supply of inputs for dairying in form of fodder, animal feed plant, vetenery
aids for the animal (cattle and buffalos).

2. Milk is taken out from the mulching animal on the daily basis by the dairy
farmers (large, medium and small scale farmers).

3. Collection of milk by collection centers (various milk cooperatives societies).

4. Milk collected by the cooperative societies are sent to the dairy plants where
chilling of milk, processing and packaging of milk and milk product,
transportation of milk and milk product is carried out.

5. The transportation of chilled milk and milk products from one place to
another is done through the means of refrigerated vans, or insulated milk
tankers vans of private, government and cooperatives societies.

6. Final processed milk and milk products are transported to various retails
outlets, supermarkets, and to retails markets from where the processed milk
and milk products finally reaches to their end customers.