ME & I_Inmantec.ppt

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11 February 2013 1Dr DEEPAK SINGH
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Dr DEEPAK SINGH 2

32/11/2013
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11 February 2013 Dr DEEPAK SINGH 311 February 2013 Dr DEEPAK SINGH 3

2
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11 February 2013 Dr DEEPAK SINGH 411 February 2013 Dr DEEPAK SINGH 4

1


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11 February 2013 Dr DEEPAK SINGH 5 5


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INTERNATIONAL BUSINESS

STRATEGIES

11 February 2013 Dr DEEPAK SINGH 82/11/2013 8

There are 3 kinds of

Companies:.One who make

things happen,One who watch things

happen,

One that wonderedwhat happened.

8
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IDENTIFY THE COUNTRIESON THE MAP

11 February 2013 Dr DEEPAK SINGH 9

MEXICO

ITALY
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WORLD MAP:

One World, One Dream

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http://www.google.co.in/imgres?imgurl=http://theformofmoney.blogharbor.com/GlobalEconomy.jpg&imgrefurl=http://theformofmoney.blogharbor.com/blog/_archives/2009/11&usg=__imEs3IxmaGQ5xh3jrzwNoEM9U8g=&h=300&w=300&sz=110&hl=en&start=36&zoom=1&tbnid=wbbLZoa0PDWxUM:&tbnh=116&tbnw=116&prev=/images%3Fq%3Dglobal%2Beconomy%26start%3D20%26hl%3Den%26sa%3DN%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://a.images.blip.tv/Sinomania-GeneralMotorsTurnsChineseNewChinaFundsCoalBoom187.jpg&imgrefurl=http://www.channels.com/episodes/show/4124223/General-Motors-Turns-Chinese-New-China-Funds-Coal-Boom-&usg=__geRtsFbX4mdQIj420f-sw0XVzBk=&h=480&w=720&sz=56&hl=en&start=8&zoom=1&tbnid=JqubDujh68a_gM:&tbnh=93&tbnw=140&prev=/images%3Fq%3Dchinese%2Bboom%26hl%3Den%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://totalgadha.com/tgtown/knowledgeispower/files/2010/01/bric-nations.gif&imgrefurl=http://totalgadha.com/tgtown/knowledgeispower/2010/01/&usg=__3lCT7bqTaRPAKhffBhe7h9AFk-I=&h=134&w=172&sz=9&hl=en&start=6&zoom=1&tbnid=Blikai6j_D9xrM:&tbnh=78&tbnw=100&prev=/images%3Fq%3DBRIC%26hl%3Den%26sa%3DG%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.easterneuropeans.co.uk/img/editor/sambaimage4.jpg&imgrefurl=http://www.easterneuropeans.co.uk/%3Fpage%3D56%26article%3D38&usg=__6XMgEeANzpZkvNke7frDX2aHbRI=&h=312&w=470&sz=37&hl=en&start=48&zoom=1&tbnid=MlGkawLcCnCflM:&tbnh=86&tbnw=129&prev=/images%3Fq%3Dbrazilian%2Bsamba%26start%3D40%26hl%3Den%26sa%3DN%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.pri.ge/images/OtherImages/eu_pms-nb-neg.gif&imgrefurl=http://www.pri.ge/eng/EuropeanUnion.php&usg=__-EtOxW35IfFch79lqaqg6PH-Pyg=&h=308&w=462&sz=20&hl=en&start=16&zoom=1&tbnid=5cen7vGoIYyTDM:&tbnh=85&tbnw=128&prev=/images%3Fq%3DEU%2Bnations%26hl%3Den%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://a.images.blip.tv/Sinomania-GeneralMotorsTurnsChineseNewChinaFundsCoalBoom187.jpg&imgrefurl=http://www.channels.com/episodes/show/4124223/General-Motors-Turns-Chinese-New-China-Funds-Coal-Boom-&usg=__geRtsFbX4mdQIj420f-sw0XVzBk=&h=480&w=720&sz=56&hl=en&start=8&zoom=1&tbnid=JqubDujh68a_gM:&tbnh=93&tbnw=140&prev=/images%3Fq%3Dchinese%2Bboom%26hl%3Den%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.easterneuropeans.co.uk/img/editor/sambaimage4.jpg&imgrefurl=http://www.easterneuropeans.co.uk/%3Fpage%3D56%26article%3D38&usg=__6XMgEeANzpZkvNke7frDX2aHbRI=&h=312&w=470&sz=37&hl=en&start=48&zoom=1&tbnid=MlGkawLcCnCflM:&tbnh=86&tbnw=129&prev=/images%3Fq%3Dbrazilian%2Bsamba%26start%3D40%26hl%3Den%26sa%3DN%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.pri.ge/images/OtherImages/eu_pms-nb-neg.gif&imgrefurl=http://www.pri.ge/eng/EuropeanUnion.php&usg=__-EtOxW35IfFch79lqaqg6PH-Pyg=&h=308&w=462&sz=20&hl=en&start=16&zoom=1&tbnid=5cen7vGoIYyTDM:&tbnh=85&tbnw=128&prev=/images%3Fq%3DEU%2Bnations%26hl%3Den%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://totalgadha.com/tgtown/knowledgeispower/files/2010/01/bric-nations.gif&imgrefurl=http://totalgadha.com/tgtown/knowledgeispower/2010/01/&usg=__3lCT7bqTaRPAKhffBhe7h9AFk-I=&h=134&w=172&sz=9&hl=en&start=6&zoom=1&tbnid=Blikai6j_D9xrM:&tbnh=78&tbnw=100&prev=/images%3Fq%3DBRIC%26hl%3Den%26sa%3DG%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://theformofmoney.blogharbor.com/GlobalEconomy.jpg&imgrefurl=http://theformofmoney.blogharbor.com/blog/_archives/2009/11&usg=__imEs3IxmaGQ5xh3jrzwNoEM9U8g=&h=300&w=300&sz=110&hl=en&start=36&zoom=1&tbnid=wbbLZoa0PDWxUM:&tbnh=116&tbnw=116&prev=/images%3Fq%3Dglobal%2Beconomy%26start%3D20%26hl%3Den%26sa%3DN%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.britannica.com/blogs/wp-content/uploads/2008/11/currency.jpg&imgrefurl=http://www.britannica.com/blogs/2008/11/nobel-economists-offer-first-aid-for-global-economy&usg=__WFOxHxTgB9VZ8wsNmizzSo0Z77o=&h=444&w=550&sz=78&hl=en&start=34&zoom=1&tbnid=8Q67NIG0h3hN9M:&tbnh=107&tbnw=133&prev=/images%3Fq%3Dglobal%2Beconomy%26start%3D20%26hl%3Den%26sa%3DN%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://stockwatch.in/files/Global-Economy.jpg&imgrefurl=http://www.stockwatch.in/business-news/economy%3Fpage%3D30&usg=__DunQoNA6ZeN2JunNt2hZ4QzdlTQ=&h=325&w=420&sz=19&hl=en&start=27&zoom=1&tbnid=EABhN7uvTYuGEM:&tbnh=97&tbnw=125&prev=/images%3Fq%3Dglobal%2Beconomy%26start%3D20%26hl%3Den%26sa%3DN%26gbv%3D2%26tbs%3Disch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://comps.fotosearch.com/comp/DSN/DSN026/global-economy_~1828357.jpg&imgrefurl=http://www.fotosearch.com/DSN026/1828357/&usg=__6yrodRxtiKFFgzm3wRpdA8j5UxM=&h=320&w=300&sz=28&hl=en&start=3&zoom=1&tbnid=Bo9B_bfXkNZhcM:&tbnh=118&tbnw=111&prev=/images%3Fq%3Dglobal%2Beconomy%26hl%3Den%26gbv%3D2%26tbs%3Disch:1&itbs=1


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GLOBAL MARKET

ENTRY STRATEGIES


ExtentofInvestmentRisk

High

LowLow HighDegree of Ownership and Control

Exporting

Licensing &Franchising

Strategic Alliance(Production/ Marketing)

Joint Venture

Wholly OwnedSubsidiary
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INTERNATIONAL TRADE

National economies are becoming more and more

interdependent and integrated even as the world economy

and business are becoming increasingly globalized.

The two conditions that apply to export transactions are: Across national boundary.

Payments must be realized in exporter country.

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INTERNATIONAL TRADE


Factors responsible for interdependence among countries:

Uneven distribution of factor input (Resources; Technology).

Advancement in Information Technology.

Division of Labour & Specialization.

EXPORTS:

Safest access to new market.

Profits & Foreign Exchange Earnings

Market Growth

Better utilization of capacity.

Improved quality.

IMPLICATIONS

IMPORTS:

Makes available scare/ unavailableresources & technical know-how.

Aids to exports.

Better relations.


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Population: ANY GUESS??EconomyGDP: (PPP) - $ 80.3 trillions in 2011GDP - composition by sector: agriculture: 6%; industry: 30.6%;

services: 63.4% (2011 est.)IndustriesIndustries: top ten - share of world trade: electrical machinery,

including computers 14.8%; mineral fuels, including oil, coal,gas, and refined products 14.4%; nuclear reactors, boilers, andparts 14.2%; cars, trucks, and buses 8.9%; scientific andprecision instruments 3.5%; plastics 3.4%; iron and steel 2.7%;organic chemicals 2.6%; pharmaceutical products 2.6%;diamonds, pearls, and precious stones 1.9%. Most of theseadvances take place in OECD nations

Cross-border Yearly exports:$17.97 trillion (2011 est.)Exports - partners: US 12.7%, Germany 7.2%, China 6.4%,

France 4.5%, Japan 4.3%, UK 4.2% (2008 est.) Yearly imports: $17.82 trillion (2011 est.)

Imports - partners: China 10.3%, Germany 8.7%, US 8%,Japan 5% (2008 est.)11 February 2013 Dr DEEPAK SINGH 16


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Global growth will pick pace over the next two years, withworld GDP rising by 4.8 per cent in 2007; 2.7 per cent in 2008;

shrunk by 0.7% in 2009; rose back to 4.6% in 2010.

International trade is growing faster than the world output (gross world product)

The world economy continued to expand robustly. Growth inthe four years ending in 2007 was expected to average 4.8 percent. The main impetus for the current upturn is coming fromoutside the OECD.

Much of the trade occurs between developed countries (25countries account for 85% of the world trade; EU+ NAFTA+Japan equals 2/3 of the world trade).

Growing power of developing countries (Asia will replaceEurope in economic power within 20 years). Growing trend ofthe global outsourcing and production sharing.

Growth of NTBs and regional economic groupings.



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North America: slowdown (recession) and uncertainty for the

future South and Central America: renewed growth from 1999

Western Europe: growth in the Euro area but slowing activity

Eastern Europe: need for structural and institutional reforms in

some countries

Asia: setback to recovery and underlying structural weaknesses inJapan; irregular pattern of growth in developing nations

Middle East: Boosted activity

Africa: growth constrained by war and civil conflict in somecountries.



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Population: ANY GUESS??EconomyGDP: (PPP) - $4.421 trillion (2011 est.)

GDP - composition by sector: agriculture: 17%; industry: 26%; services:56% (2011 est.)

Exports & ImportsExports: Chemicals, engineering goods, jewelry, petroleum products,textile goods & apparelImports: Crude oil, precious stones, machinery, fertilizer, iron andsteel, chemicals

Cross-border Yearly exports:$307.2 billion (2011 est.) Exports - partners:UAE 12.7%, US 10.8%, China 6.2%, Singapore 5.3%,

Hong Kong 4.1% (2011)

Yearly imports: $475.3 billion (2011 est.) Imports - partners: China 11.9%, UAE 7.7%, Switzerland 6.8%, Saudi

Arabia 6.1%, US 4.9% (2011)



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1. Agriculture & Allied Products: Constitute around 10.2% of exports;Major of items (37%) are:

Rice Tea & Coffee Fish & fish preparations Cashew kernels & Spices Fruits & vegetables/ Processed foods2. Ores & Minerals: Constitute around 5.2% of exports; Major of item

(71%) is:

Iron ore/ Mica3. Manufactured Goods: Constitute around 72% of exports; Major of

items (66%) are: Gems & Jewellary Chemical products Engineering Goods Ready made garments Cotton yarn & fabrics made ups4. Others: Constitute around 13% of exports; Major of items are: Mineral Fuels & lubricants; coal; etc.



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OECD (Organization of Ecconomic Cooperation &Development): EU (Belgium, France, Germany, UK), US,Canada, Japan, Australia account for 44% of our exports.

OPEC: Mainly UAE, KSA, Iran, Kuwait account for 15% of ourexports.

East Europe: Mainly CIS account for 2% of our exports.

Developing Nations: Mainly from Asia, Latin America, Africaaccount for 39% of our exports.



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High Costs: Domestic costs

Poor Quality Image: Non dependable quality

Unreliability: Late supply; poor after sales services

Supply problems: Non continuous

Faceless presence: No branding

Infrastructural bottle necks: Shortage of energy,transportation, telecommunications, etc.

Structural weakness: Absence of management, marketinginformation, planning, etc.

Uncertainities, Procedural complexities & Institutional

rigidities.



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Fertilizers

Petroleum Crude & Products

Pearls, Precious and Semi-Precious Stones

Capital Goods: Import of Capital Goods, largelyrepresented by machinery, including Transport Equipmentas well as Project Goods Professional Instruments

Chemicals and Chemical Materials: Organic and InorganicChemical Materials and Medicinal and PharmaceuticalsProducts constituted the major components of importsunder this category.



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In dollar terms, Asia and Oceania region comprising South Asian,East Asian, Mid-eastern and Gulf countries accounted for nearly 51.54% of India's total exports. Share of West Europe and America in ourexports stood at 22.99 % and 17.04 % respectively.

The share of Asia and Oceania in India's exports has increased aswell as the shares of regions like Africa, EU and East Europe. On thecontrary shares of North America, South America and Caribbeancountries in India's total export showed a decline.

As far as individual countries are concerned, Indias largest tradepartner, the United States consumes 15% of total Indian exports.Other leading customers for Indian products are the United ArabEmirates (8.7%), China (8.7%), and the United Kingdom (4.4%)

In the case of import also, share of Asia and Oceania in India's totalimport was highest at 62.52 % , followed by West Europe (19.97 %)

and America (9.05%). Coming to individual countries, the share ofChina 10.7%, Germany 9.2%, US 8.3%, Japan 5.1%, France 4%



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International Business Environment


7

Political/legalforces

Economic

forces

1

2

Environmentaluncontrollablecountry market A

Environmentaluncontrollablecountrymarket B

Environmentaluncontrollablecountrymarket C

Competitors

Level ofTechnology

Resources

Orgl.

Culture

Orgl.

StructureInternationalenvironment

Suppliers

Socio-Culturalforces

3

4

5 MktgIntermediaries

Customers

(controllable)

(Uncontrollable)

I t ti l B i E i t


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Economic environment consists of macro level factors related tothe factors of production and distribution of wealth.

It includes:a) Economic stages: Low income economies (>$825); middle income

economies ($826-$10065); high income economies (


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Culture is the sum total of all learned behavior that are shared by membersof a society and passed on to the next generation.

Elements of culture affecting international marketing are:

a) Language: There are many forms of formal and informal expressions.b) Customs and Manners: Usage difference of the products may occur, which

has to be translated into product form and promotional decisions. E.g. giftexchange; weddings; festivals.

c) Values and Attitude: They help determine what we think is right,appropriate, important and desirable (monochronic, polychronic

societies);d) Religion: It is internal, psychic and mental behavior that gives rise to

external manifestations e.g. beef vs. pork; fasting season; shubh muhurat

e) Aesthetics: It refers to the idea of beauty and good taste (performing arts)and appreciation of colour and form e.g. colours.

f) Material culture: It is the result of technology and is directly related to how a

society organizes its economic activities (in terms of degree of comfort;living conditions; amount of leisure time available)

g) Education: It refers to the transmission of skills, ideas, attitude andtraining. It has implication in IM in terms of marketing communication;availability of trained labour for the local operations in the host country;launch of sophisticated technology.


I t ti l B i E i t


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International Business EnvironmentBefore we discuss political and legal environment, let us understandTradeBarriers.

TRADE BARRIERS: These are the artificial restrictions imposed bythe governments on free flow of goods & services betweencountries. One of the most important features of the internationaltrading environment is the proliferation of trade barriers.

It mainly includes:

Tariffs: These are traditional barriers. Refers to the duties or taxes.

There are different ways of classifying the tariffs.

Non Tariff Barriers: These are new protectionist (quantitative)measures:

1. Quotas

2. Licensing

3. Voluntary Export Restraints4. Administered Protection



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BRIC

EU

ASEAN

MERCOSUR

CSNGCC

NAFTA

EFTA

CARICOM

ECOWAS

SAARC


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MAJOR GLOBAL

MARKETS



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MAJOR DECISIONS IN

INTERNATIONAL BUSINESS


Market

Selection

Decisions

Entry and

Operating

Decision

Marketing

Mix

Decisions

Market

Potential

Company

s

Objective

s

Environme

ntal

Factors

Company

s

Resource

s

Price

Product

Promoti

onD

istributi

on

Intl.

Org.

Decisions


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Ethnocentric orientation (Home country Orientation)eg. Nano, Nissan, Harley Davidson,

Polycentric orientation (Host country Orientation)

eg. Philips Electronics,

Regiocentric orientation (Regional Orientation)eg. McDonald,

Geocentric orientation (Global/ World Orientation)eg. Matsushita electronics, Sony,



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GROUP ACTIVITY: LETs UNDERSTAND


34/53

GROUP ACTIVITY: LETs UNDERSTAND

OUR NEIGHBOURLet us identify a leading product (SMEs) and design the strategicmechanism for export in an emerging market.

GROUPS Group 1: Agri-business

Group 2: Gems & Jewellary

Group 3: Handicraft

Group 4: Leather & Footwear

..TIME 45 MINUTES..



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LETS

CONCPTUALIZEA LITTLE !!



36/53

FOREIGN TRADE POLICY

Foreign trade of India is guided by Foreign Trade Policy (EXIM)of Government of India and is regulated by FT (D&R) Act,1992.

Prior to 1985, GoI used to announce EXIM Policy annually.

To offer more stability & uniformity, it was decided to give thepolicy a validity of 3 years.

EXIM Policy announced on 31st March 1992, gave it the validityof 5 years.

Foreign Trade Policy came into force in Aug. 2009. Current FTP

shall remain in force till March 2014.



37/53

Special focus initiatives

Sectors with significant export prospects coupled with potentialfor employment generation in semi-urban and rural areas havebeen identified as thrust sectors, and specific sectoral strategieshave been prepared.

Further sectoral initiatives in other sectors will be announced fromtime to time. For the present, Special Focus Initiatives have beenprepared for agriculture, handicrafts, handlooms, gems & jewelleryand leather & footwear sectors.

The threshold limit of designated `Towns of Export Excellence' isreduced from Rs 1,000 crore to Rs 250 crore in these thrustsectors.



38/53

Special Focus Initiative for Agriculture includes:

A new scheme called Vishesh Krishi Upaj Yojana has been introduced toboost exports of fruits, vegetables, flowers, minor forest produce and their

value added products. Export of these products shall qualify for duty freecredit entitlement equivalent to 5% of FOB value of exports. Theentitlement is freely transferable and can be used for import of a variety ofinputs and goods.

Duty free import of capital goods permitted under EPCG (Export

Promotion Capital Goods) scheme. Capital goods imported under EPCGfor agriculture permitted to be installed anywhere in the Agri Export Zones(AEZs).

ASIDE (Assistance to States for Infrastructure Development of Exports)funds to be utilized for development for Agri Export Zones also.

Import of seeds, bulbs, tubers and planting material has been liberalized.Export of plant portions, derivatives and extracts has been liberalized witha view to promoting export of medicinal plants and herbal products.



39/53

Duty free import of consumables for metals other than gold

and platinum allowed up to 2% of FOB value of exports. Duty free re-import entitlement for rejected jewellary

allowed up to 2% of FOB value of exports.

Duty free import of commercial samples of jewellaryincreased to Rs 1 lakh.

Import of gold of 18 carat and above shall be allowed underthe replenishment scheme.



40/53

Specific funds would be earmarked under MAI/ MDA Scheme

for promoting handloom exports.

Duty free import of trimmings and embellishments forhandlooms & handicrafts sectors increased to 5% of FOBvalue of exports. Import of trimmings and embellishments

and samples shall be exempt from CVD (Counter VeilingDuty). Handicraft Export Promotion Council authorized toimport trimmings, embellishments and samples for smallmanufacturers.

A new handicraft special economic zone shall be established.



41/53

Duty free entitlements of import trimmings, embellishmentsand footwear components for leather industry increased to

3% of FOB value of exports.

Duty free import of specified items for leather sectorincreased to 5% of FOB value of exports. Machinery andequipment for effluent treatment plants for leather industry

shall be exempted from customs duty.



42/53

Target Plus: A new scheme to accelerate growth of exports called`Target Plus' has been introduced. Exporters who have achieved aquantum growth in exports would be entitled to duty free credit based

on incremental exports substantially higher than the general actualexport target fixed. (Eg. if the target fixed for 2010-11 was 16%, thelower limit of performance for qualifying for rewards was pegged at20% for that year). Rewards will be granted based on a tieredapproach.

`Served from India' Scheme

EPCG

DFRC (Duty Free Replenishment Certificate)

DEPB (Duty Entitlement Pass Book)



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New status holder categorization: A new rationalized

scheme of categorization of status holders as Star ExportHouses has been introduced.

EOUs

Free trade and warehousing zone

Services export promotion council

Procedural simplification & rationalisation measures

Pragati Maidan

Legal aid

Biotechnology parks

Board of Trade



44/53

EXPORT PROCEDURE

Essential features are:

Export procedure consists of several commercial & regulatory

formalities.

These formalities are complex & time consuming and should beprepared & filed at appropriate authorities.

Compliance of rules and regulations should be done not only of Indiabut also of importing countries.

Export procedure can be studied as following stages:

Registration Stage

Pre-shipment Stage Shipment Stage

Post shipment Stage



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Procedure for realization of Export Proceeds

Presentation of Documents to the Bank for Negotiation (within 21 days)with the following set: Bill of Exchange

Bill of Lading/ Airway Bill

Original L/C

Customs Invoice

Foreign Exchange Declaration (GR ) Form

Shipping Bill

Certificate of Origin Marine Insurance Policy

Packing List

Dispatch of Documents to Importers Bank (as specified in L/C)

Acceptance of Bill of Exchange Documents against Payments (Sight Drafts)

Documents against Acceptance (Usance Drafts)

Letter of Indemnity

Realization of Export Proceeds

Processing of GR Form (Exporters Bank intimates to RBI)



46/53

Some of the incentives extended to the Indian Exporters are:

Duty Drawback (DBK): It refers to refund of custom duty & centralexcise duty paid on raw materials, components & consumables

utilized in the manufacture of goods meant for exports. Generallythese rates are expressed as percentage of FOB value of thegoods exported.

Whom to Apply: Custom House of concerned area

When to Apply: Within 60 days after custom officer issue Let ExportOrder

Documents to be Submitted: Triplicate copy of Shipping Bill becomesan application for claim of DBK & should be accompanied by:

Copy of export contract or L/C

Copy of ARE-I form

Insurance Certificate

Copy of communication (Special Brand Rate)

Copy of packing list

Payment of Drawback: By Cheque or by credit in exporters accountby Custom House or Central Excise Collectorate



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Exemption from Central Excise: The exporters are totally exempted

from central excise duty through any of following methods:

Export Under Rebate

Export Under Bond Whom to Apply: Assistant or Deputy Commissioner of Central Excise of

concerned area

When to Apply: Within 60 days from the date of export

Documents to be Submitted: Form C in (Triplicate) accompanied byfollowing documents:

Original Copy of ARE-I duly endorsed by customs officer

Duplicate copy of ARE-I duly received from by customs officer in sealedenvelop

Duly attested copy of Shipping Bill

Duly attested copy of Bill of Lading/ Airway Bill

Duplicate copy of Central Excise Invoice under which central excise was paid

on goods cleared for exports. Refund of Duty: By Cheque or by credit in exporters account by Chief

Excise Accounts Officer.



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Exemption from Octroi Duty: Octroi is a duty paid on goods, whenthey enter the Municipal limits of a city or town. Export goods areexempted from payment of octroi duty.

Whom to Apply: Application should be submitted to Octroi Office insidethe docks as well as Port Shed Incharge.

When to Apply: Within 45 days from the date of loading.

Documents to be Submitted: Form N along with a by copy of shippingbill. Prescribed application in form C duly endorsed by octroi postinside the docks with following documents:

Octroi Challan (Cash Memo) for having paid duty. Form B (in duplicate) whose content must tally with that of Form C.

Refund of Duty: By Cheque for refund of Octroi.

Rail Freight Rebate: Transport of certain commodities for export byrails to the port of shipment is eligible for freight rebate of 50%.

Air Freight Assistance: Air freight assistance is extended to certainnotified horticulture and floriculture products.


EXPORT DOCUMENTS


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EXPORT DOCUMENTS

Aligned Documentation System (ADS): ADS is based on the UN layoutkey. Under this system, different forms used in the international tradetransaction are printed on the paper of same size and in such a way that

the common items of information are given the standardized formats.For the purpose of ADS, documents have been classified as under:

Commercial Documents: Commercial documents are required foreffecting physical transfer of goods and their title from the exporter tothe importer and the realization of export sale proceeds. These are: Proforma invoice Commercial invoice

Packing list Shipping instructions Intimation for inspection Insurance Declaration

Certificate of inspection of Quality Control Bill of Lading

Certificate of Insurance Mates Receipt

Application of certificate of Origin Certificate of origin

Shipment Advice Letter to the Bank for

collection Regulatory Documents: Regulatory pre-shipment export documents are

prescribed by different government departments and bodies in order tocomply with various rules & regulations under the relevant lawsgoverning export trade like export inspection, foreign exchangeregulation, export trade control, customs, etc.



50/53

BoPBalance of payments & international trade decision

Balance of payment is the record of a countrystransactions with the rest of the world over a periodof time, usually one year.

Balance of payments accounts:The balance ofinternational payments is listed in four sections:

i) Current account- Private Merchandise or (tradebalance)

- Invisible (services & net investment income) and

- Governmental exports or imports and grants

ii) Capital account

iii) Statistical discrepancy

iv) Official settlements


ARE WE READY?????


51/53

ARE WE READY?????

Name of the organisation.

Country of operation (Host country) , REG it belongs to &Source of raw material (technology).

Major environmental factors (specific to its operation in acountry of choice).

Export Procedure & Documents.

Special (Export promo) schemes that you would avail.

51


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