Export & import

Import and export- a brief introduction

1. Import & Export

2. Thetermimportisderivedfromtheconceptualmeaningasto
bringinthegoodsandservicesintotheportofacountry.
Thebuyerofsuchgoodsandservicesisreferredtoan
"importer"
Import

3. Thistermexportisderivedfromtheconceptualmeaningasto
shipthegoodsandservicesoutoftheportofacountry.
Thesellerofsuchgoodsandservicesisreferredtoasan
"exporter"
Export

4. Balance Of Trade
Balanceoftraderepresentsadifferenceinvalueforimport
andexportforacountry.
Atradedeficitoccurswhenimportsarelargerelativeto
exports.
Importsareimpactedprincipallybyacountry'sincomeand
itsproductiveresources.

5. TypesofImport
Therearetwobasictypesofimport:
Industrialandconsumergoods
Intermediategoodsandservices

6. PhysicalExport:Ifgoodsphysicallygooutofthecountry.
DeemedExport:Ifgoodsandservicesaresuppliedto
anotherentity.

7. REGISTER AS AN
IMPORTER OR
EXPORTER
NEGOTIATE TERMS
OF SALE
UNDERSTAND
EXPORT
FORMALITIES AND
RESPONSIBILITY
TOWARDS SALE
PROCEEDS
UNDERSTAND
DOCUMENTATION
AND INCOTERMS
FOR
EXPORT,COMPLETE
CUSTOMS
FORMALITIES AND
OBTAIN
DOCUMENTS
SUBMIT TO THE
BANK FOR
ONWARD
TRANSMISSION TO
BUYER
RECEIVE SALE
PROCEEDS
EXPORTIMPORTPROCESS

8. Reduce dependence on existing markets
Exploit international trade technology
Extend sales potential of existing products
Maintain cost competitiveness in your domestic market
Advantages of Import

9. DisadvantagesOfImport
Importationofitemsfromothercountriescanincrease
theriskofgettingthemwhichisnomorecommoninthe
warmweather.
itleadstoexcessivecompetition
Italsoincreasesrisksofotherdiseasesfromwhichthe
countryisexportingthegoods.

10. Advantages Of Export
Exportingisonewayofincreasing
yoursalespotential
Increasingsale&profits
Reducingriskandbalancinggrowth
SellExcessProductionCapacity.
Gain New Knowledge and
Experience

11. Disadvantages Of Export
ExtraCosts
FinancialRisk
Export Licensesand
Documentation
MarketInformation

12. MODESOFPAYMENT
Inordertocompletetheexportprocess,thepaymentof
theexportedgoodshastobereceivedbytheexporters.
Anexportercanreceivetheexportproceedsas
advancepayment
paymentagainstdocumentarybills
paymentagainstdocumentarybillsunderletterofcredit

13. EXIM Bank

14. EXIM Bank
Export-ImportBankofIndiaisthepremierexportfinance
institutionofthecountry,establishedin1982underthe
Export-ImportBankofIndiaAct1981

15. GovernmentofIndialaunchedtheinstitutionwithamandate,notjust
toenhanceexportsfromIndia,buttointegratethecountry’sforeign
tradeandinvestmentwiththeoveralleconomicgrowth.
likeotherExportCreditAgenciesintheworld,EximBankofIndia
has,overtheperiod,evolvedintoaninstitutionthatplaysamajorrole
inpartneringIndianindustries,particularlytheSmallandMedium
Enterprises,intheirglobalizationefforts,throughawiderangeof
productsandservicesofferedatallstagesofthebusinesscycle,
startingfromimportoftechnologyandexportproductdevelopment
toexportproduction,exportmarketing,pre-shipmentandpost-
shipmentandoverseasinvestment.

16. EXIM Bank
EximBankofIndiahasbeentheprimemoverinencouraging
projectexportsfromIndia.
TheBankextendslinesofcredittooverseasfinancial
institutions,foreigngovernmentsandtheiragencies,enabling
themtofinanceimportsofgoodsandservicesfromIndiaon
deferredcreditterms.

17. TheBankprovidesfinancialassistancebywayoftermloansinIndian
rupees/foreigncurrenciesforsettingupnewproductionfacility,
expansion/modernization/upgradationofexistingfacilitiesandfor
acquisitionofproductionequipment/technology.
SuchfacilitiesSuchfacilitiesparticularlyhelpexportorientedSmall
andMediumEnterprisesforcreationofexportcapabilitiesand
enhancementofinternationalcompetitiveness.
TheBankhaslaunchedtheRuralInitiativesProgramwiththe
objectiveoflinkingIndianruralindustrytotheglobalmarket.
Theprogramisintendedtobenefitruralpoorthroughcreationof
exportcapabilityinruralenterprises.

18. EXIM Bank
EximBanksupplementsitsfinancingprogramswitha
widerangeofvalue-addedinformation,advisoryand
supportservices,whichenableexporterstoevaluate
internationalrisks,exploitexportopportunitiesand
improvecompetitiveness,therebyhelpingthemintheir
globalizationefforts.

19. Support Institutions to Facilitate Exports
Someoftheseinstitutionsare:
ExportCreditGuaranteeCorporation(ECGC)
EximBankofIndia
IndiaTradePromotionOrganisation(ITPO)
ExportInspectioncouncil(EIC)
IndianInstituteofPackaging(IIP)contd

20. OCTROI
Thestategovernment
leviestheoctroicharges
whentheproductenters
thestate.Thischargeis
applicabletocertain
statesandfluctuatesas
pertheGovernment
regulationsandweare
unabletoconfirmthe
amount.

21. ECGC
TheExportCreditGuaranteeCorporationofIndia
Limited(ECGC)isacompanywhollyownedbytheGovernment
ofIndiabasedinMumbai,Maharashtra.
ItprovidesexportcreditinsurancesupporttoIndian
exportersandiscontrolledbytheMinistryofCommerce.
GovernmentofIndiahadinitiallysetupExportRisks
InsuranceCorporation(ERIC)inJuly1957.

22. ECGC LOGO

23. ECGC
WhatdoesECGCdo?
Providesarangeofcreditriskinsurancecoversto
exportersagainstlossinexportofgoodsandservices.
Offersguaranteestobanksandfinancialinstitutionsto
enableexporterstoobtainbetterfacilitiesfromthem.

24. ProvidesOverseasInvestmentInsurancetoIndiancompanies
investinginjointventuresabroadintheformofequityorloan.
Informationondifferentcountrieswithitsowncreditrating.
Assiststheexportersinrecoveringbaddebts.

25. Exports & Import –General Provisions in
Foreign Trade Policy
TheinterpretationofPolicy:DGFTisthefinalauthority.Any
exemptionfrompolicyorprocedurealsotobereferredto
DGFT
Freedomtoexport&importexcepttotheextentofprovisions
intheForeignTradePolicyoranyotherlawinforce
Everyexporter/importermustcomplywiththeprovisionsof
theForeignTrade(Development&Regulation)Act1992
Noagencyshallwithholdconsignmentsallowedforexports.
Freemovementofexportgoodsisallowed.Authoritycantake
undertakingfromexporterincaseofanydoubt

26. Specific Provisions
Freeexports
Allexportsinfreelyconvertiblecurrencyexceptinspecific
situations
Realizationofexportproceedswithinaspecifiedtime
Deemedexports

27. Excise Duty
Anexciseorexcisetax(sometimescalledadutyofexcise
specialtax)isaninlandtaxonthesale,orproductionforsale,
ofspecificgoodsorataxonagoodproducedforsale,orsold,
withinacountryorlicensesforspecificactivities.Excisesare
distinguishedfromcustomsduties,whicharetaxeson
importation.

28. Custom Duty
.
Customsdutyisakindofindirecttaxwhichisrealizedongoods
ofinternationaltrade.
Ineconomicsense,itisalsoakindofconsumptiontax.
Dutiesleviedbythegovernmentinrelationtoimporteditemsis
referredtoasimportduty.
Inthesamevein,dutiesrealizedonexportconsignmentsis
calledexportduty.
Tariff,whichisactuallyalistofcommoditiesalongwiththe
leviablerate(amount)ofCustomsduty,ispopularlyunderstood
asCustomsduty.

29. INCOTERMS
TheIncotermsrulesorInternationalCommercialtermsarea
seriesofpre-definedcommercialtermspublishedby
theInternationalChamberofCommerce(ICC)widelyusedin
internationalcommercialtransactions.
Itdefinesthetradecontract,responsibilitiesandliabilities
betweenthebuyerandtheseller
Thesetermsmakeinternationaltradeeasierandhelptraders
indifferentcountriestounderstandtheresponsibilitiesand
rightsofthebuyersandsellers.

30. SOMEOFTHETERMSARE-
EXW–ExWorks(namedplaceofdelivery)
FCA–FreeCarrier(namedplaceofdelivery)
CPT-CarriagePaidTo(namedplaceofdestination)
CIP–CarriageandInsurancePaidto(namedplaceof
destination)
DAT–DeliveredatTerminal(namedterminalatportorplace
ofdestination)
DAP–DeliveredatPlace(namedplaceofdestination)
DDP–DeliveredDutyPaid(namedplaceofdestination)