Import & Export
Import
The term import is derived from the conceptual meaning as to
bring in the goods and services into the port of a country.
The buyer of such goods and services is referred to an
"importer"
Export
This term export is derived from theconceptual
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"
Balance Of Trade
Balance of trade represents a difference in value for import
and export for a country.
A trade deficit occurs when imports are large relative
to exports.
Imports are impacted principally by a country's income
and
its productive resources.
Types of Import
There are two basic types of import:
Industrial and consumer goods
Intermediate goods and services
Physical Export : If goods physically go out of the country.
Deemed Export : If goods and services are supplied
to another entity.
EXPORT IMPORT PROCESS
UNDERSTAND
REGISTER AS AN EXPORT UNDERSTAND
NEGOTIATE FORMALITIES AND
IMPORTER OR DOCUMENTATION
TERMS OF RESPONSIBILITY
EXPORTER AND INCOTERMS
SALE TOWARDS SALE
PROCEEDS
FOR
SUBMIT TO THE
EXPORT,COMPLET
BANK FOR
RECEIVE SALE E CUSTOMS
ONWARD
PROCEEDS FORMALITIES AND
TRANSMISSION TO
OBTAIN
BUYER
DOCUMENTS
Advantages of Import
Reduce dependence on existing markets
Exploit international trade technology
Extend sales potential of existing products
Maintain cost competitiveness in your domestic market
Disadvantages Of Import
Importation of items from other countries can increase
the risk of getting them which is no more common in the
warm weather.
it leads to excessive competition
It also increases risks of other diseases from which the
country is exporting the goods.
Advantages Of Export
Exporting is one way of increasing
your sales potential
Increasing sale& profits
Reducing risk and balancing growth
Sell Excess Production Capacity.
Gain New Knowledge
and
Experience
Disadvantages Of Export
Extra Costs
Financial Risk
Export Licenses
and Documentation
Market Information
MODES OF PAYMENT
In order to complete the export process, the payment of
the exported goods has to be received by the exporters.
An exporter can receive the export proceeds as
advance payment
payment against documentary bills
payment against documentary bills under letter of
credit
EXIM Bank
EXIM Bank
Export-Import Bank of India is the premier export finance
institution of the country, established in 1982 under the
Export-Import Bank of India Act 1981
Government of India launched the institution with a mandate, not just
to enhance exports from India, but to integrate the country’s foreign
trade and investment with the overall economic growth.
like other Export Credit Agencies in the world, Exim Bank of India
has, over the period, evolved into an institution that plays a major
role in partnering Indian industries, particularly the Small and
Medium Enterprises, in their globalization efforts, through a wide
range of products and services offered at all stages of the business
cycle, starting from import of technology and export product
development to export production, export marketing, pre-shipment
and post- shipment and overseas investment.
EXIM Bank
Exim Bank of India has been the prime mover in encouraging
project exports from India.
The Bank extends lines of credit to overseas financial
institutions, foreign governments and their agencies, enabling
them to finance imports of goods and services from India on
deferred credit terms.
The Bank provides financial assistance by way of term loans in Indian
rupees/foreign currencies for setting up new production facility,
expansion/modernization/upgradation of existing facilities and for
acquisition of production equipment/technology.
Such facilities Such facilities particularly help export oriented Small
and Medium Enterprises for creation of export capabilities and
enhancement of international competitiveness.
The Bank has launched the Rural Initiatives Program with the
objective of linking Indian rural industry to the global market.
The program is intended to benefit rural poor through creation of
export capability in rural enterprises.
EXIM Bank
Exim Bank supplements its financing programs with a
wide range of value-added information, advisory and
support services, which enable exporters to evaluate
international risks, exploit export opportunities and
improve competitiveness, thereby helping them in their
globalization efforts.
Support Institutions to Facilitate Exports
Some of these institutions are:
Export Credit Guarantee Corporation (ECGC)
Exim Bank of India
India Trade Promotion Organisation (ITPO)
Export Inspection council (EIC)
Indian Institute of Packaging (IIP) contd
OCTROI
The state government
levies the octroi charges
when the product enters
the state. This charge is
applicable to certain
states and fluctuates as
per the Government
regulations and we
unable to are confirm
amount. the
ECGC
The Export Credit Guarantee Corporation of India
Limited(ECGC) is a company wholly owned by the Government
of India based in Mumbai, Maharashtra.
It provides export credit insurance support to Indian
exporters and is controlled by the Ministry of Commerce.
Government of India had initially set up Export Risks
Insurance Corporation (ERIC) in July
1957.
ECG LOGO
C
ECGC
What does ECGC do?
Provides a range of credit risk insurance covers
to exporters against loss in export of goods and services.
Offers guarantees to banks and financial institutions
to
enable exporters to obtain better facilities from them.
Provides Overseas Investment Insurance to Indian companies
investing in joint ventures abroad in the form of equity or loan.
Information on different countries with its own credit rating.
Assists the exporters in recovering bad debts.
Exports & Import – General Provisions in
Foreign Trade Policy
The interpretation of Policy: DGFT is the final authority. Any
exemption from policy or procedure also to be referred to
DGFT
Freedom to export & import except to the extent of provisions
in the Foreign Trade Policy or any other law in force
Every exporter/importer must comply with the provisions of
the Foreign Trade (Development & Regulation) Act 1992
No agency shall withhold consignments allowed for exports.
Free movement of export goods is allowed. Authority can take
undertaking from exporter in case of any doubt
Specific Provisions
Free exports
All exports in freely convertible currency except in specific
situations
Realization of export proceeds within a specified time
Deemed exports
Excise Duty
An excise or excise tax (sometimes called a duty of excise
special tax) is an inland tax on the sale, or production for sale,
of specific goods or a tax on a good produced for sale, or sold,
within a country or licenses for specific activities. Excises are
distinguished from customs duties, which are taxes on
importation.
Custom Duty
Customs duty is a kind of indirect tax which is realized on goods
of international trade.
I. n economic sense, it is also a kind of consumption tax.
Duties levied by the government in relation to imported items is
referred to as import duty.
In the same vein, duties realized on export consignments is
called export duty.
Tariff, which is actually a list of commodities along with the
leviable rate (amount) of Customs duty, is popularly understood
as Customs duty.
INCOTERMS
The Incoterms rules or International Commercial terms are a
series of pre-defined commercial terms published by
the International Chamber of Commerce (ICC) widely used in
international commercial transactions.
It defines the trade contract ,responsibilities and liabilities
between the buyer and the seller
These terms make international trade easier and help traders
in different countries to understand the responsibilities and
rights of the buyers and sellers.
SOME OF THE TERMS ARE-
EXW – Ex Works (named place of delivery)
FCA – Free Carrier (named place of delivery)
CPT - Carriage Paid To (named place of destination)
CIP – Carriage and Insurance Paid to (named place of
destination)
DAT – Delivered at Terminal (named terminal at port or place
of destination)
DAP – Delivered at Place (named place of destination)
DDP – Delivered Duty Paid (named place of destination)
