EXPORT IMPORT

PREOCEDURES & DOCUMENTAION

S.Y.BMS/A

AVNI DESIGNS

PREPARED BY
Aarushi Jadhav Rahul Rane Rohit Pevekar Karan Gorad Milind pednekar -18 -58 -59 -61 -62

ABOUT AVNI DESIGNS

 Owner of the company MR.BHARAT SEJPAL

 Factory Location-Gujrat  Incorporation-1986  Business Type-Exporter/Manufacturer

Product List
 Handicrafts  Fashion accessories  Handbags  Gloves, scarves, capes  Hair accessories  Fans, decorative objects  Games & toys, home furnishing products

PRODUCTION
 Product list  Nature of company  Turnover- approx. 2 cores

ORGANISATION STRUCTURE
 Independent Export Division:- Accounts department.

- Export department

-Packaging department

EXPORT MARKETS
 Italy  Australia  USA  Germany  Belgium  Dubai

Strategies of Export Marketing

 To select local products  Strategy in packaging  Overseas markets as heterogeneous  Selection of the right sales promotion schemes

 To promote country s tradition

Ways of Transport
 Airways  Marine ways

Methods of Payment
y Telegraphic Transport
Prepayment or advance payment is a method of payment used in international or domestic transactions where the buyer pays the seller in advance before receiving goods or services. It is a very highrisk method for the importer and with almost no risk for the exporter. Usually an importer can pay the exporter by cash, T/T, Western Union or Money Gram or other payments that is agreed by both parties However, T/T is the most common payment method that requires the use of cable or telegraph to remit funds. No hard money transfer is involved in T/T. The order to pay is wired to an institutions cashier to make payment to a company or individual. Although telegraph is less in use these days, T/T is regarded as the most convenient means of completing a transaction. T/T does not necessarily mean that it has to be made in advance to the suppliers. It can also be made after the goods are received. It depends on negotiation. The sellers insist for the payment by T/T due to the fact that the other alternate method i.e. Letter of Credit is expensive for small transactions. In L/C negotiation charges are high and sellers' transaction cost goes high. If one contemplates higher risk in paying by T/T then he can negotiate with the seller for L/C with condition that all bank charges outside India will be to the L/C opener's account. In this method the transaction cost will be high but your point of risk can be covered.

 Direct Payment
Direct Payments are intended to empower service users by allowing them control and choice over the services they use to meet their needs. Each person on the scheme is given an amount of money to be managed by themselves, possibly with the aid of others such as family or an external advocacy organization. This money can be used to purchase any service or services that meet the person's assessed needs. As the money given to the person is given in lieu of the local authority providing the care, the money remains public money belonging to the local government who makes the payments. Users must, therefore, account for the money every step of the way so the local government can maintain its auditing requirements. There is however, no requirement for a person to receive the entirety of their care needs through direct payments; people are free to mix direct payments for some of their needs with traditional methods of care provision. Direct Payments can be used to directly employ a personal assistant (in this case the Direct Payments recipient may legally be classed as an employer with all the responsibilities this entails under UK law) or hire care workers from a private domiciliary care agency. As an alternative to care services, the recipient may be able to use his or her Direct Payments to fund other local services that enable their independence within their own home and community, such as 'meals on wheels', taxi cabs and social clubs.

 Letter Of Credit
Letters of credit (LC) deal in documents, not goods. The LC could be irrevocable or revocable. An irrevocable LC cannot be changed unless both the buyer and seller agree. Whereas in a revocable LC changes to the LC can be made without the consent of the beneficiary. A sight LC means that payment is made immediately to the beneficiary/ seller/ exporter upon presentation of the correct documents in the required time frame. A time or date LC will specify when payment will be made at a future date and upon presentation of the required documents. Negotiation means the giving of value for draft and/or document by the bank authorized to negotiate, viz the nominated bank. Mere examination of the documents and forwarding the same to the letter of credit issuing bank for reimbursement, without giving of value / agreed to give, does not constitute a negotiation. To receive payment, an exporter or shipper must present the documents required by the letter of credit. Typically instead of presenting goods themselves, a document proving the goods were sent is presented instead. However, the list and form of documents is open to imagination and negotiation and might contain requirements to present documents issued by a neutral third party evidencing the quality of the goods shipped, or their place of origin or place. Typical types of documents in such contracts might include.

Export Procedure
Trade ShowBuyer/Buyin g

agencies Post Shipment Payment Select Samples

Select and place orders

Send Samples

Trade Show-Buyer/Buying agencies.

 An Avni design is a well know company who sells their product outside of the county like Italy, USA, Germany, Belgium, Dubai etc.  They organize Trade Show, Exhibition, to sell their product through agencies.

Select Samples
 They select a sample form this company(Avni Designs)

Send Samples
 Then Avni designs send those samples to those agencies for the importer.

 Select and place orders  They select the sample and place the order.  Post Shipment Payment
 Before receiving goods payment.

Pricing Strategies
 Avni designs cost per item from 1$ to 40$ as per the material  They follow Skimming pricing strategy Meaning Objectives Market coverage Promotions Tenure of Strategies Type of customers

Strategies of Avni design

1. To select local products which are suitable for overseas buyers and to improve its quality and design to meet requirements of foreign buyers. 2. Strategy in packaging-packaging for export market must be strong and protective. Avni designs fulfills three functions protection against water and moisture, breakage and theft.

3. Selection of right sales promotion schmes avni organizes the trade fairs, exhibitions, press advertising which improves the export preference.

4. To promote country s tradition the main stratergy o f avni is to promote india s tradition in foreign countries.

Ways of transport
y Airways
Avni design transport the goods by airways from navasheva to u.s.a

y Seaways
Avni design also transport goods through seaways. In order to protect the cargo from perils on high sea, Avni design has obtain marine insurance policy .

Organization structure
Independent export division

y Accounts department
A large scale exporting organization dealing in a products always has an account department.

y Export department
As the export department is created as an internal department of the organization, it is called as in build export department. The export manager is the head of the export department and he looks after the export activities.

y Packaging department
The packaging department packages parts and pieces for consignee of avni designs.

Pricing strategies
 Avni designs cost per item from 1$ to 40$ as per the material.

 They follow skimming pricing

startegy.
Skimming price is high in early stages The strategy aims at maximizing profit margin initially till the market reaches saturation point. The exporter can reach only to a limited market segment, that can afford to pay high price. Avni designs promote their product by exhibitions and trade fairs.

It is a short tenure of strategies The exporter concentrates only on the affluent customers.