Introduction : Assessing Export

Readiness/ Basic Steps for

Exporting

Dr. Vijaya Katti

Chairperson (MDPs)
Indian Institute of Foreign Trade
New Delhi

For Niryat Bandhu Scheme (Session on 20.6.2016)

 Coverage
• What is meant by exports?
• Legal definition
• Why to export? Who can export?
• International trade scenario and India’s position
in global trade
• Product specific specialties
• Demand of pattern of specific export market
specific products
• Global market and possibilities of exports
• How to assess your export readiness?
What is meant by export?
- Legal definition
 Concept of Export
• The term export derives from the conceptual meaning as to
ship the goods and services out of the port of a country.
• The seller of such goods and services is referred to as an
“exporter” who is based in the country of export whereas
the overseas based buyer is referred to as an “importer”.
• In International Trade, “export” refers to selling goods and
services produced in the home country to other markets.
• In very simple terms, export may be defined as the selling of
goods to a foreign country. However, As per Secion2(e) of
the India Foreign Trade (Development & Regulations) Act
(1992), the term export may be defined as ‘an act of taking
out of India any goods by land, sea or air and with proper
transaction of money”.
 Why Export
- Reasons for Export
• There are many good reasons for exporting. Some of the motives of export
are given below:
• The first and the primary reason for export is to earn foreign exchange. The
foreign exchange not only brings profit for the exporter but also improves
the economic condition of the country.
• Secondly, companies that export their goods are believed to be more
reliable than their counterpart domestic companies assuming that exporting
company has survived the test in meeting international standards.
• Thirdly, free exchange of ideas and cultural knowledge opens up immense
business and trade opportunities for a company.
• Fourthly, as one starts visiting customers to sell one’s goods, he has an
opportunity to start exploring for newer customers, state-of-the-art
machines and vendors in foreign lands.
• Fifthly, by exporting goods, an exporter also becomes safe from offset lack of
demand for seasonal products.
• Lastly, international trade keeps an exporter more competitive and less
vulnerable to the market as the exporter may have a business boom in one
area while simultaneously witnessing a bust in a different area.
 Who can export?
• Any one who wants to do something different
• Anyone who wants to enter in a profit zone
• Anyone who has assessed his readiness to
enter in new field & try his luck
• Anyone who is willing to take risk
• Anyone who is constantly updating himself on
global business environment
 Planning for Export
• The organization should plan well before
exporting as to what product to be exported,
where to be exported etc. The organization
should also evaluate the export potential of a
company. The main objective of a typical export
plan should be to identify:
– The objectives of exporting
– Lists of activities to undertake to achieve those
objectives
– Mechanism for review and
– Activities to help focus on goals
 Contd..
• Successful exporters agree that your ability to become an accomplished
international traders depends largely on how you

Target new business Adopt appropriate Make every penny

areas export development count
strategy
Have some idea of
Identify and focus impact of the FTAs, Dig out every
on markets, which WTO standards, penny due to you
consume products SPS Measures, from the system,
having the same Intellectual by making best use
competitive profile Property Rights, of available
as the products you domestic opportunities,
can supply regulations on the policies and
products of interest schemes
 Contd..
• Information on the above subject is spread across
numerous websites and documents produced by
the Trade Ministries of various countries (For FTA,
GSP, Customs duty), DGFT, Customs, RBI, Central
Excise, Banks, WTO, Other international bodies.
• You do not need to understand everything
available, but how do you know what to miss.
Information Overload makes impossible demand
on your resources and time.
 Contd..
• The course you have enrolled provides straight
answers to innumerable questions asked by
the exporters as they launched, developed
and grew their business. It is a one stop access
to information scattered across 100s of
websites, manuals, and schemes : and covers
basic essentials for starting your business
endeavor.
Exporter’s Questionnaire
 For a proper export planning following questions need to
answered :

• Which products are selected for export development?

• What modifications, if any, must be made to adapt them for overseas markets?
• Which countries are targeted sales development?
• In each country, what is the basic customer profile ?
• What marketing and distribution channels should be used to reach customers?
• What special challenges pertain to each market (competition, cultural
differences, import controls, etc.), and what strategy will be used to address
them?
• How will the product’s export sale price be determined?
• What specific operational steps must be taken and when?
• What will be the time frame for implementing each element of the plan?
• What personnel and company resources will be dedicated to exporting?
• What will be the cost in time and money for each element?
• How will results be evaluated and used to modify the plan?
Export Readiness Assessment (ERA) Questionnaire

For filling up this questionnaire, please register and Login at http://indiabr.com/

Contd..
Contd….
Contd..
The course on “Export & Import
Business” has 7 segments
Basic steps for Exporting

Marketing related issues (Identification of Product and Market)

WTO Related Issues
FTP related issues

Finance/Risk Management issues

Customs and Excise interface/Sales contract

Preparation & Execution of Export Business Plan
 Export Preliminaries
• Export-Import is totally free with very limited
restriction (96% items are free items)
• To find Buyers-Seller is your decision
• To decide Product and its Price-Qty are your
decision
• You must prepare Export Business Plan
 Export
• Take Order
• Find CHA (Custom House Agent)
• Find mode of export (Sea/Air)
• Find Carrier
• Fill Shipping Bill
• Take payment
• Request for Bank Realisation Certificate
• Register for Export Scheme
 Basic Steps for Exporting
Step 1
• Those interested in EXIM business need to apply to the regional
office of the Director General of Foreign Trade (DGFT) for getting
Importer-Exporter Code (IEC) Number. This is true for any individual
or company willing to undertake export or import in India. IEC
number is not mandatory in the case of imports for personal use.
The DGFT has regional offices in many states. Step 1 is applicable in
the case of first-time exporters.
Step 2
• The exporter has to register with the concerned export promotion
council. For example, in case of garments, it is essential to obtain
registration-cum-membership certificate (RCMC) from the Apparel
Export Promotion Council (AEPC). Registration is essential in order
to obtain various permissible benefits given by the government.
Step 3
• The exporter can now go in for procuring orders,
by first sending a sample, if required. Both
exporter and importer will have to agree upon
the terms and conditions of the contract such as
pricing, documents, freight charges, currency and
so on. After this, the importer send a purchase
order.
Step 4
• With export orders in hand, the exporters starts
manufacturing goods or buying them from other
manufacturers.
Step 5
• The exporter makes arrangements for quality
control and obtains from the inspector of
quality control, a certificate confirming the
quality of goods, depending upon the
requirement.
Step 6
• Exportables are then dispatched to
ports/airports for transit.
Step 7
• The exporter asks the importer to take marine/air
insurance under cost and freight, free on board
etc., terms of contract.
Step 8
• After the completion of these formalities, the
exporter contacts the clearing and forwarding
agent (C&F agent) for storing the goods in
warehouses. (The exporter can also store the
goods personally). The forwarding agent
presents a document called the Shipping Bill,
which is required for allowing shipment by the
Customs Authority.
Step 9
• After loading the goods in to the ship, the captain
of the ship issues a receipt known as ‘Mate’s
Receipt’ to the ship superintendent of the port.
The superintendent calculates the port charges
and gives it to the exporter/C&F agent).
Step 10
• When the port payments are made, the C&F
agent or exporter gets the Bills of Lading or
Airway Bill from the official agent of the shipping
company or the airline.
Step 11
• The exporter applies to the relevant Chamber of
Commerce for obtaining Certificates of Origin,
stating that the goods originated from India. (This
is not a mandatory document in all cases.)
Step 12
• The exporter also sends a set of documents to
the importer, stating the date of shipment, name
of vessel, etc. Moreover, it is desirable to send
certain documents like the Bills of Lading, Custom
Invoice, and Packing List to their foreign
counterparts.
Step 13
• The exporter now presents all the important
documents at his bank. (This has to be done
within 21 days after the shipment.
Step 14
• The exporter’s bank sends these documents to
the importer’s bank. The importer’s bank should
make the payment on or before the due date.
Although these steps give a clear picture about
how to export, some steps are not essential.
 EXPORT–IMPORT DOCUMENTATION
Proforma Invoice
• The Proforma Invoice, as the name suggests, is a proforma
of the invoice. It is prepared by an exporter and sent to the
importer for necessary acceptance.
Packing List
• It is a consolidated statement in a prescribed format,
detailing how the goods have been packed. It is informative
and itemizes the material in each individual package, such
as drum, box, or carton. It is a very useful document for
customs at the time of examination and for the warehouse
keeper of the buyer to maintain a record of inventory and
to effect delivery.
Commercial Invoice
• An invoice is a fundamental document of prime
importance.
• It contains the name of the exporter, importer,
and the consignee, and the description of goods.
• It is a requisite for the invoice to be signed by an
exporter or his agent.
• Normally, the invoice is prepared first, and
several other documents are then prepared by
deriving information from the invoice.
Certificate of Origin
• The Certificate of Origin is a very useful
document in export-import trade. This certificate
indicates that the goods, which are being
exported, are actually manufactured in a specific
country mentioned therein. This certificate is sent
by the exporter to the importer.
• It is useful for the clearance of the goods from
the customs authority of the importing country.
However, it is worth noting that the certificate of
origin is required by some countries only.
Generalized System of Preference Certificate of Origin

• As its name indicates, the generalised system

of Preferences (GSP) certificate of origin
certifies that the goods being exported have
originated/been manufactured in a particular
country. It is mainly useful for taking
advantage of a preferential duty concession, if
available.
Shipping Bill/Bill of Entry
• The Shipping Bill is a reuisite for seeking the
permission of customs to export goods by
sea/air. It contains a description of export
goods, the number and kind of packages,
shipping marks and numbers, value of goods,
the name of the vessel, the country of
destination, etc.
ARE-I Form
• The ARE-I Form is an application for the
removal of excisable goods from the factory
premises, for export purposes. For example, if
you are exporting a ball point pen or a
magazine, on which there is no excise
applicable, you do not need to fill in this form.
Mate’s Receipt
• After the cargo is cleared from the customs
examination and other formalities are over, it is
handed over to the shipping company for loading.
The Mate’s Receipt is issued by the captain of the
ship. It contains the name of the vessel, shipping
line, port of loading, port of discharge, shipping
marks and numbers, packing details, description
of goods, gross weight, container number, and
seal number. The mate’s receipt is exchanged for
the Bill of Lading.
Exchange Declaration Form (GR/SDF Form)

• One of the main functions of the Central Bank

is to control and monitor the foreign exchange
reserves of the country. Since exports directly
relate to the country’s foreign exchange
earnings, it becomes essential for nations to
regulate an export transaction.
• The Reserve Bank of India (RBI) has prescribed
a GR form (SDF), a PP form, and SOFTEX forms
to declare the export transactions.
Distribution/Disposal of Copies of GR Form

• GR forms, covering the export of goods,

should be completed by the exporter in
duplicate, and both copies should be
submitted to customs at the time of shipment.
• Customs will verify all particulars of all goods
and the value will be declared in the GR form.
• After the shipment has been sent, the original
of the GR form will be retained by the customs
for onward submission to the RBI.
Statutory Declaration Form
• Some offices in the customs department are
now computerized. To meet the requirements
of electronic data interchange system, the GR
form has been replaced online by a new form
known as Statutory Declaration Form (SDF).
Post Parcel Form
• When goods are exported by post, then
instead of the GR form, the exporter has to fill
up a Post Parcel (PP) form in triplicate.
SOFTEX Forms
• The declaration in SOFTEX form, in respect of
export of computer software and
audio/video/television software, shall be
submitted in triplicate to the designated
official at the Department of Electronics of
Government of India at the Software
Technology Parks of India (STPIs) or at the Free
Trade Zones (FTZs) on Export Processing Zones
(EPZs) in India.
Bills of Exchange
• The Bill of Exchange is commonly known as draft.
It is ‘an instrument in writing, containing an
order, signed by the maker, directing a certain
person to pay a certain sum of money only to the
order of a person to the bearer of the
instrument’.
Sight Draft
• When the drawer, that is, exporter expects the
drawee, that is, importer to make the payment
immediately upon the draft being presented to
him, the draft involved is called a Sight Draft.
Usance Draft
• When the exporter has agreed to give credit
to the foreign buyer, he draws the Usance Bills
of Exchange.
Inspection Certificate
• The Inspection Certificate is required by some
importers and countries in order to attest the
specifications of the goods shipped. The
attestation is usually performed by a
government agency or by independent testing
organizations.
Bill of Lading
• The Bill of Lading (B/L) is a document issued
by the shipping company or its agent. It
acknowledges the receipt of the goods
mentioned in the bill for shipment on board of
the vessel.
• The B/L is the legal document to be referred in
case of any dispute over the shipment.

Contd….
• It contains the following information:
– The shipping company’s name and address
– The consignee’s name and address
– The port of loading and the port of discharge
– Shipping marks and particulars
– Number of packages shipped with date-rubber
stamp
– Description of packages and the goods
– Gross weight and net weight
– Freight details and name of the vessel
– Signature of the shipping company’s agent
• Airway Bill
• Airway Bill is a contract between the owner of the goods
and the career or its agent. The receipt issued by the
airlines company or its agent for carriage of goods is called
an airway bill.
• Insurance Certificate
• The Insurance Certificate is used to assure the consignee
that insurance will cover the loss or damage to the cargo
during transit (marine/air insurance).
• Consular Invoice
– The Consular Invoice is a document required by
certain countries. This invoice is an important
document that needs to be submitted for
certification to the embassy of the country
concerned.
Marketing related issues
 Marketing – The Concept
• Marketing, in the simplest of terms, can be
defined as the process which profitably meets
the need for products.
• The more formal definition of marketing" is
that it is an organizational function and a set
of processes for creating, communicating, and
delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders.
• Marketing activities have been traditionally
depicted in terms of a marketing mix, which can
be defined as the set of marketing tools needed
to pursue marketing objectives. The marketing
mix consists of four broad groups, popularly
referred to as the four Ps of marketing. These are:
• Product
• Price
• Place
• Promotion
 INTERNATIONAL MARKETING
• Marketing as a concept is universal, but the markets
and behaviour of consumers vary across countries
and can be quite different. This makes it essential for
any student of international marketing to gain
knowledge in three critical areas:
• Cross-cultural knowledge
• Country/regional knowledge
• Cross-border transactions knowledge
 EXPORT MARKETING-GOING GLOBAL

This section addresses the all-important question: Why

should a firm enter the international market? Some of the
more obvious reasons for firms to enter overseas markets
are:
• Profitability
• Growth
• Achieving economies of scale
• Risk spread
• Access to imported inputs
• Uniqueness of products and services
• Marketing opportunities due to life cycle
• Spreading R&D costs
 Find Buyer
• Experience
• Business Promotion: Website
• Distributor, Dealers, Commission Agents
• Reference
• Visits, Exhibition, Event Participation
• Advertise and Marketing
• Surfing
 Deciding on Pricing
• Price and Pricing Strategies
• Profit-Oriented Pricing Objectives
• Sales-Oriented Pricing Objectives
Product Specific Issues
 Find Item for Export
• Your background : Education, Job Experience,
Family Business
• Understand Export/Import Database
• Supply/Demand
• Price
• Profitability
• Example: Embroidery Machine, Pressing
Machine, spinning machine
 Find HS Code
• HS Code – Harmonised System Code
• Type in google : Find (item) HS Code
• Example : Vitrified Tiles (69071010)
• See Chapters, sub heading
• Match with your item
• Match with 8 digit HS Code
 Find your Item Type

• Three type of items : Free, Prohibitive, Restrictive

• Free : Without any restriction, no license, no
certificate
• Prohibitive: Total ban
– Example: All wild animal, animal articles including their
products and Derivatives
• Restrictive : Under specific condition
– Example : Live Horses – Kathiawari, Marwari and Manipuri
breeds
96% items are free items
ITEM Free Prohibited Restrictive Total
Total 10915 55 443 11413
Foreign Trade Policy related issues
INDIA’S FTP 2015 - 2020
• India’s new five year FTP 2015 – 2020 provides a stable
and sustainable policy environment ; overarching
framework and architecture to catalyse exports and
facilitate nay rationalise imports; generate
employment and increase value addition in the
country.
• India’s FTP – Domestic Trade Policy is anchored in the
Domestic Policy framework (symbiotic relationship and
synergy) Export Promotion Mission to be created that
would be synergised with the National Missions of
‘Make in India’; ‘Digital India’ – e Governance -
Improve the ‘ease of doing business’ index; ‘Skill India’.
INDIA’S FTP 2015 – 2020 – SUPER ORDINATE
GOAL (bHAG)
• India’s FTP Statement explains the Vision ,Mission.
Objectives and Goals ; Market and Product strategy;
Structure and Architecture to achieve the goals.
• VISION - Super Ordinate Goal – big Hairy Audacious Goal (b
HAG ) of doubling India’s exports of merchandise and
services from about USD 450 Billion in FY 2013 -14 to USD
900 Billion in FY 2019 – 2020 and to raise India’s share in
world exports from 2% to 3.5%.
• Every thing hangs together in International Trade – so
‘Whole of Government’ approach - State Governments ;
Other Central Government Ministries to be also involved
rather than just the role of Department of Commerce in the
export value chain (both up stream and down stream
activities in terms of Michael Porter’s value chain)
 Definition of SEZ

⮚ Special Economic Zone is a duty free enclave and is

treated as a deemed foreign territory outside the
Customs Territory of India for the purposes such as
tariffs, trade operations, and duties.
⮚ A Special Economic Zone (SEZ) has liberal laws than
that of country's conventional laws for the general
trade & business.
⮚ The category 'SEZ' covers a broad range of multi-
product or sector specific zones.

Department of Commerce, Govt. of India 58

 HIGHLIGHTS OF SEZ SCHEME

⮚ Manufacturing, services as well as trading is allowed

in the SEZs.
⮚ Free Trade & Warehousing Zones (FTWZ) also
permitted as stand alone SEZ or a part of another
SEZ.
⮚ FDI up to 100% is permitted under the automatic
route for setting up of SEZ after the approval by BOA.
⮚ Supply from SEZs to DTA treated as imports.
⮚ Supply from DTA to SEZs is treated as exports.
⮚ Units in SEZ qualify for FDI approval through
automatic route subject to sectoral norms.
5
9
 FISCAL BENEFITS FOR SEZs UNITS

⮚ Exemption from Customs duty, Excise Duty, service tax and

central sales tax on authorized activity which includes building
material etc. for setting up, maintenance & operation SEZ
unit.
⮚ Exemption from Central Sales Tax (CST).
⮚ Exemption from payment of Stamp Duty, VAT, Electricity
duty, Work Contract Tax, Entry Tax, Mandi Tax etc.
⮚ 100% Income Tax exemption on export income for SEZ units
under Section 10AA of the Income Tax Act for first 5 years,
50% for next 5 years thereafter and 50% of the ploughed back
export profit for next 5 years.
⮚ DTA Supplier eligible to avail duty drawback for the supplies
effected into SEZ.
60
 EASE OF DOING BUSINESS

Recent initiatives of the Govt. of India for speedy disposal of work of SEZs :-

❑Work Disposal Timelines have been implemented in the SEZs across the country
w.e.f. 14.08.2014.
❑Online modules have been implemented w.e.f. 01.11.2014 for more effective
digitization and online processing of applications.
❑Harmonization of procedures, simplification of practices & standardization of Forms
in all SEZs has been implemented w.e.f. 28.10.2014.
❑Govt. of India vide GSR(5) dated 2nd January, 2015 has issued notification allowing
dual-use of infrastructure in NPA in SEZs by both SEZ and DTA entities, by amending
Rule 11(10) of SEZ Rules, 2006.

Department of Commerce, Govt. of India 61

 International Trade Issues and Commitments
Adopt your business to benefit from the impact of WTO, Free Trade
Agreement, New trade issues. Following aspects will be covered :

III IV
How new Issues How you can
like Non Tariff use available
II
How your
Measures of Trade Policy
Various Instruments for
product can
I enter US and
Countries,
Sanitary and
Handling
How to European
Phyto-sanitary
Imports Surge
benefit market at less through the use
Standards,
from the than normal of Anti
Intellectual
Indian Free duty using the
Trade schemes like
Property Rights Dumping,
and Safeguard and
Agreement GSP, or how
Geographical Countervailing
s and WTO your imports can
Indications may
Rules? benefit from
impact your
Measures?
Duty Free Tariff
profitability?
Preference
Scheme?
 Incoterm
International Commerce Term
• A formalized international Term of Trade regulated by the International
Chamber of Commerce
• Specifies the responsibilities of the exporter and the responsibilities of
the importer in an international transaction
– Which tasks will be performed by the exporter
– Which tasks will be performed by the importer
– Which activities will be paid by the exporter
– Which activities will be paid by the importer
– When the transfer of responsibility for the goods will take place
• First codified by the International Chamber of Commerce in 1953. The
latest revision is dated 2000
Finance/ Risk Management
 Nuts & Bolts of Finance

I. Management of international payments, Understanding change in

value of Foreign Currencies

II. Risk management in exports – Commercial and Political Risk ,

How to do more export business with less money

III. Export Finance including Pre-Shipment & Post-Shipment

Finance, Line of Credit, RBI Guidelines, Foreign Exchange for
Individuals/Firms
IV. Export Insurance including Export Credit cum Guarantee
Corporation (ECGC) Schemes For Product Insurance, Marine
Insurance

International Trade is an endurance game of a hyper competitive nature

where every penny counts and rewards could be high for smart
entrepreneurs
 PRE-SHIPMENT FINANCE
• Financial assistance extended to the exporter prior to
the shipment of goods is termed pre-shipment
finance.
• An exporter can avail pre-shipment finance either in
the form of:
• packing credit in local currency (e.g., packing credit in
rupees), or
• pre-shipment credit for foreign currency (PCFC).
 POST-SHIPMENT EXPORT ADVANCE
• Banks give short-term finance to exporters against
the exports receivable up to 120 days. The following
are the primary types of advances:
• Exports Bills Negotiation
• Exports Bills Purchase
• Exports against Bills Sent for Collection
• Post-shipment finance is available at concessional
rate to the exporters.
 Risk Management in Export-
import Business
Commercial Risks: The risks arising from
suitability of the product for the market or
otherwise change in supply and demand
conditions and changes in price. Commercial
risks arise due to:
• (i) Lack of Knowledge
• (ii) Inability to adapt to the environment
• (iii) Different kinds of situations to be dealt with
• (iv) Greater transit time involved
 Risk Management in Export-import
Business
Cargo Risk:
• Transit disasters are an ever present hazard for
those engaged in Export-Import business.
• Every shipment runs the risk of a long list of
hazards such as storm, collision, theft, leakage,
explosion, spoilage etc. It is possible to transfer the
financial losses resulting from perils of and in transit
to professional risk bearers known as underwriters.
• As most goods are transported by marine transport,
every exporter should have an elementary
knowledge of marine insurance to get the
protection at the minimum cost.
 Sales Contract
• The major advantage of incorporation for a seller is that,
where the rules are incorporated, he will know in advance the
criteria against which the banks will examine the shipping
documents in deciding whether or not to pay under the
credit. The major advantage of incorporation for a buyer is
that he will know in advance the criteria against which the
price for the goods will be paid against tender of documents.
However, for the buyer to be under an obligation to open a
letter of credit governed by the UCP 600, the sale contract
needs to include an express condition imposing such an
obligation on the buyer. Only with such a condition in place
can the seller object if the buyer were to open a letter of
credit that is not governed by the UCP, e.g. 'Payment by
irrevocable letter of credit, incorporating UCP 600'.
 Contd..
• However, buyers may still stipulate in the
credit that certain aspects of the UCP rules are
excluded, provided of course this was laid
down in the sales contract.
Contents of the Program
 Session 1: Introduction to Export/Import,
Assessing export readiness of your firm

Coverage • What is meant by exports?

• Legal definition
• Why to export?
• Who can export?
• How to assess your export readiness
(questionnaire…)
Session 1 contd…: Knowledge about
international markets
Coverage Introduction to international market in the context
of export-import with specific reference to India
• Rich heritage of various state – Natural
endowment
• Product specific specialties
• Demand of pattern of specific export
market in specific products.
• Tariff and non tariff barriers in international
market
Session 2: How to Access Markets

Coverage • Using trade data to identify the products with export

potential
• Adapting your product to meet government
regulations, country conditions, or preferences
• Modifying your product labeling and packaging
• Planning for installation of your product overseas
 Session 2 contd.: How to find
buyers?
Coverage • Marketing Strategy, Channel partners, Finding the
Buyers & KYC
• What is negotiation? Role of negotiation in business.
How to convert buyers " No" to 'Yes"
• How to price the product? Case study about the
pricing.
• How to draft a contract in International trade.
• Dispute Resolution in contract
Session 3 : Sources of International market
data (Online & Offline)

Coverage • Step by step process flow and business decision

indicators
• Sources of trade data collation followed by hands on
experience of downloading the trade data
• Analyzing the data to apply it in real life business
through mock case situations
 Session 4 : INCOTERMS 2010
Coverage • INCOTERMS 2010 - Choosing the right delivery term
Session 5 : Introduction to ITC(HS) Codes.
How to get IEC Code

Coverage • What is an IEC?

• How to get an IEC online?
• How to make changes in IEC?
 Session 5 contd…
Coverage • What is the basis of classification of policy
• What is ITC (H S) CODE
• What is product grouping
• How to identify the product
• Case Study pertaining to the above
Session 6 : Free Trade Agreements

Coverage • India’s emergence into FTA league;

• Subtle variation in focus of India’s FTAs with ASEAN vis-a-vis the
Korea and Japan (CECAs);
• Actual trade Impact on India from the FTA and non-FTA
Partners;
• How this difference can be explained?
• How to analyse an FTA effectively- using a product-Specific
approach.
• Conclude
 Session 7 : Foreign Trade Policy
(2015:2020): Major highlights

Coverage 1. Foreign Trade Policy (2015-2020) – Major highlights

2. DGFT and export promotion --- Role of RA, EPCs and
RCMC
3. Interface with Airports, Ports, ICDs, SEZs, ICE GATE
Session 7 contd.. : Export: Import
Incentives
Coverage • Objectives of Export Promotion Schemes
• MEIS
• SEIS
• Duty Exemption and Remission Scheme
• EPCG
 Session 8 : SPS, TBT, NTB

Coverage • Understanding types of Non tariff barriers

• Quantitative Restrictions
• Discussing dispute settlement cases on trade
compliance
• Quality compliance
• Environmental compliance
• Social compliance
• Technology compliance
 Session : 9
Coverage • Incorporating Sales Contract term
 Session 10 : Export Documentation
Coverage • Understanding the role of trade documentation &
procedure in international trade transactions.
• Knowing what are the documentation practices &
procedure in India for making export/import from the
country.
• Understanding the commercial and regulatory
documentation practices in order to avoid any kind of
non-compliance in international documents which may
result in penalty or loss of incentives or benefits such
as duty drawback.
 Session 11 : Duty Draw Back and claims
procedures

Coverage • Excise & Customs Interface.

• Online filing of custom documents.
• Ease for doing exports.
• Factory Stuffing / Excise Sealing / Self Sealing
Permission for container stuffing.
• Various Checkpoints to avoid hassles.
 Session : 12
Coverage • Understanding Logistics Value Chain in
Export operations
Session 13 : Letter of Credit and implication of UCP: 600 rules

Coverage • Management of international payments to ensure full

and on-time payments
• Letter of Credit
• Implication of UCP-600 rules.
 Session 14 : Financial schemes
Coverage • Export transaction schemes of import finance.
• How to do more export business with less money
• Case study
 Session 15 : Understanding RBI guidelines

Coverage Export and Import regulations by Reserve Bank of India

 Session 16 : Currency Management
Coverage • Understanding change in value of Foreign Currencies
(USD, STG, YEN and EURO)
• Basics of Currency Risk Managements to protect
profit margin – Export-Import transactions.
Session 17 : Basic steps for Exporting

Coverage • Guidelines for prospective entrepreneur.

• Preparing the export plan.
• Applying for IEC Code – Online or Offline
• Understanding the purpose and procedure of various
Incoterms for an international trade transaction and
for decreasing the responsibilities and obligations of
exporter.
• Choosing the right shipping term keeping in mind the
mode of payment affecting the responsibilities and
obligations of exporter.
• Understanding requirements of state government.
 Session 18 : Risk Management

Coverage • What is Risk?

Various types of Risks in trade- specially International
trade
• Risk Management viz. Identification , quantification,
analysis, & transfer of risk
• What is credit & sovereignty risk
• Role of ECGC & Credit risk agencies in the promotion
of Export Trade
• Procedures & settlement of claims
 Session 19 : Preparation &
Execution of Export Business Plan

Coverage • How to write export business plan

• Contents of this plan
• Role of DGFT and RAs in export facilitation
• Financial & Product considerations
• Market identification
• Challenges and opportunities in selected markets
• Negotiating skill for marketing
• Economic diplomacy and role of Embassies
 Session 20 : PANEL DISCUSSION

• Interaction of IIFT PROFESSORS & DGFT

OFFICIALS with all participants to sort out
various issues regarding export and import
business.
Thank You..