ASCM Import Export PPT.pptx on Import-Export category

Import Export PPT

1. IMPORT AND EXPORT PROCEDURES & INCOTERMS JANVI VASDEV (25155) ARUSHI WADHWA (25156) ASHIMA THAKUR (25158)

2. WHAT IS IMPORTING?

3. IMPORT PROCEDURES

4. ESSENTIAL IMPORT DOCUMENTATION

5. COMMON CHALLENGES

6. Overview of the Global Trade Landscape Globalization and Interconnectedness The world economy has become increasingly globalized, with countries and businesses deeply interconnected through international trade and investment flows. Advancements in transportation, communication, and technology have made it easier than ever to engage in cross-border commerce and access global markets. Emerging Markets and Growth Opportunities While traditional economic powerhouses like the United States, Europe, and Japan remain significant players, emerging markets in Asia, Latin America, Africa, and the Middle East are rapidly gaining importance. These regions present vast untapped potential for businesses looking to expand their global reach and capitalize on fast-growing consumer bases and production capabilities. Shifting Trade Patterns and Geopolitical Dynamics The landscape of global trade is constantly evolving, influenced by factors such as changing consumer preferences, geopolitical tensions, regional trade agreements, and technological disruptions. Understanding these dynamic shifts is crucial for businesses to navigate the complex web of international markets and identify the most promising opportunities. Challenges and Barriers to Trade Despite the numerous benefits of global trade, businesses may face various challenges, including tariffs, non-tariff barriers, regulatory hurdles, cultural differences, and logistical complexities. Navigating these obstacles requires strategic planning, adaptability, and a deep understanding of the local markets and regulations.

7. Benefits of Exporting for Businesses Access to New Markets Exporting opens up a world of opportunities for businesses, allowing them to reach new customer bases and expand beyond their domestic markets. By tapping into global demand, companies can significantly grow their revenue streams and increase their overall competitiveness. Increased Profitability Exporting can lead to higher profit margins due to economies of scale, reduced production costs, and the ability to charge higher prices in international markets. Additionally, diversifying revenue sources across multiple countries can help mitigate the impact of economic downturns in any single market. Improved Efficiency and Innovation The challenges and opportunities presented by exporting can drive businesses to become more efficient, innovative, and adaptable. Exposure to different cultures, regulations, and consumer preferences can spur the development of new products, services, and business practices, ultimately strengthening the company's overall competitiveness. Enhanced Brand Reputation Successful exporting can enhance a company's brand reputation and credibility, both domestically and internationally. Being able to compete and succeed in global markets can be a significant differentiator, attracting new customers, partners, and investors.

8. Identifying Export Opportunities 1 Conducting Market Research The first step in identifying export opportunities is to conduct thorough market research. This involves analyzing the target country's economic conditions, consumer preferences, industry trends, and competitive landscape. By understanding the specific needs and preferences of potential international customers, businesses can tailor their products or services to better meet their demands. 2 Evaluating Your Capabilities Once you have a solid understanding of the target market, it's essential to assess your own company's capabilities, resources, and competitive advantages. Consider factors such as your production capacity, product quality, pricing, and ability to adapt to foreign market requirements. This will help you determine if you have the necessary capabilities to successfully export your offerings. 3 Leveraging Trade Agreements and Incentives Exploring trade agreements and government incentives can open up new export opportunities. Many countries have established free trade agreements or preferential trading arrangements that can provide favorable tariffs, reduced barriers, and other benefits for exporters. Additionally, governments often offer export promotion programs, tax incentives, and financial assistance to encourage businesses to venture into international markets.

9. Understanding Export Documentation Navigating the world of export documentation can be a complex and daunting task for businesses, but it is a crucial step in the export process. Proper documentation ensures compliance with international trade regulations, facilitates customs clearance, and enables the smooth flow of goods across borders. From commercial invoices and packing lists to certificates of origin and export licenses, each document serves a specific purpose and must be accurately prepared and submitted. Understanding the key export documents required by different countries and their respective regulations is essential for successful exporting. Businesses must also be aware of the various certifications and permits needed for their specific products, such as health and safety certificates or special licenses for certain goods. Staying up-to-date with the latest documentation requirements and regulations is critical to avoid delays, fines, or even the rejection of shipments at the destination port. Careful planning and organization are vital when it comes to export documentation. Businesses should develop a comprehensive checklist of all the required documents, designate responsible parties for each task, and establish efficient processes for document preparation, submission, and record-keeping. Investing in the necessary resources and expertise, whether in-house or through the assistance of a freight forwarder or customs broker, can help ensure a seamless and compliant export experience.

10. Navigating Export Procedures and Regulations Understanding Export Documentation Navigating the web of export documentation can be a complex and daunting task. From commercial invoices and packing lists to certificates of origin and export licenses, each document serves a specific purpose in the export process. It's crucial to familiarize yourself with the required paperwork and ensure that all information is accurate and complete to avoid delays or complications at the border. Complying with Export Regulations Export regulations can vary widely depending on the destination country, the type of goods being shipped, and other factors. Businesses must research and comply with all relevant regulations, such as trade agreements, trade sanctions, and export control laws. Failure to do so can result in penalties, seizures, or even legal action. Staying up-to-date with the latest regulatory changes is essential for successful exporting. Navigating Customs Procedures Clearing customs can be one of the most challenging aspects of the export process. Exporters must understand the customs procedures and requirements for their destination market, including tariff rates, customs clearance processes, and any necessary inspections or certifications. Familiarity with customs brokers and freight forwarders can also be invaluable in navigating these complex procedures smoothly.

11. Logistics and Supply Chain Management for Exports Effective logistics and supply chain management are critical components of a successful export strategy. When exporting goods internationally, businesses must navigate complex transportation networks, customs procedures, and global distribution challenges. From sourcing raw materials to delivering finished products to international customers, exporters must carefully coordinate every step of the supply chain to ensure timely, cost-effective, and reliable product delivery. Key considerations include selecting the right transportation modes (air, sea, ground), managing export documentation and customs clearance, optimizing warehousing and inventory, and leveraging technology for supply chain visibility and coordination. Exporters must also account for factors like trade regulations, tariffs, and geographic distances that can impact lead times and costs. By partnering with experienced logistics providers and implementing robust supply chain management practices, exporters can reduce risks, increase efficiencies, and deliver a superior customer experience - all of which are essential for building a sustainable and competitive export business.

12. Developing an Effective Export Marketing Strategy Market Research Conducting thorough market research is the foundation of an effective export marketing strategy. Understand the target market's preferences, buying habits, and competition. Identify the unique value proposition that sets your products or services apart in the global marketplace. Localization Adapt your marketing efforts to the cultural, linguistic, and regulatory nuances of each target market. Translate your website, marketing materials, and product information. Ensure compliance with local laws and customs to build trust and credibility with international customers. Channels and Partnerships Leverage a diverse range of marketing channels to reach your international audience, such as e-commerce platforms, trade shows, and strategic partnerships with local distributors or industry influencers. Develop strong relationships with key stakeholders to expand your global reach and access new markets. Digital Presence Invest in a robust online presence to showcase your products and services to the world. Optimize your website for international SEO, create engaging social media content, and leverage digital advertising to attract and convert potential customers from around the globe. Developing an effective export marketing strategy is crucial for businesses looking to expand their reach and unlock the vast opportunities of the global marketplace. By conducting thorough market research, localizing your marketing efforts, leveraging diverse channels and partnerships, and building a strong digital presence, you can effectively promote your products or services to international customers and drive sustainable growth in the export market. Remember, the key to success is to deeply understand your target markets, adapt your approach to their unique needs and preferences, and consistently deliver value through your export offerings. With a well-crafted export marketing strategy, you can capture the attention of global consumers, build brand recognition, and position your business for long-term success in the ever-evolving world of international trade.

13. What Are Incoterms? To facilitate commerce around the world, the International Chamber of Commerce (ICC)  publishes a set of Incoterms, officially known as international commercial terms. Globally recognized, Incoterms prevent confusion in foreign trade contracts by clarifying the obligations of buyers and sellers.

14. Parties involved in  domestic  and  international trade  commonly use Incoterms as a kind of shorthand to help understand one another and the exact terms of their business arrangements. Some Incoterms apply to any means of transportat ion, while others apply strictly to transportation across water.

15. The International Chamber of Commerce (ICC) developed Incoterms in 1936 and updates them periodically to conform to changing trade practices. Examples of Incoterms for modes of transportation include Delivered at Terminal (DAT), Delivered Duty Paid (DDP), and Ex Works (EXW). Incoterms were updated for 2020, and although only one term changed, there are notable differences in security costs. The terms are standardized , but certain buyers and sellers prefer individual terms over others. As such, which terms will be used is a matter of negotiation.

16. What Do Incoterms Not Cover? There are specific instances that Incoterms will not cover. Incoterms do not: Address all the conditions of a sale  Identify the goods being sold nor list the contract price Reference the method or timing of payment negotiated between the seller and buyer    Determine when the title, or ownership of the goods, passes from the seller to the buyer   Specify which documents must be provided by the seller to the buyer to facilitate the customs clearance process in the buyer’s country   Address liability for the failure to provide the goods in conformity with the contract of sale, delayed delivery, or dispute resolution mechanisms

17. Pros Easily understood terms International standardization Updated and clarified by an international body (ICC) Cons Differences between buyer and seller preferences when choosing terms Certain terms can expose one party to inflated costs

18. Importance of INCOTERMS Ensuring Clarity and Fairness Clear Communication: INCOTERMS help parties clearly communicate their expectations and responsibilities in a trade transaction. Fair Distribution of Risks and Costs: By defining the point at which risk transfers from seller to buyer and allocating costs accordingly, INCOTERMS ensure fairness and transparency. Legal Significance: Contractual Basis: They form an integral part of sales contracts and help establish legal obligations between parties. Dispute Resolution: Clarity provided by INCOTERMS reduces the likelihood of disputes and facilitates smoother dispute resolution if they arise.

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