Guidelines to

Export & Import

as per Foreign Trade Policy 2015-2020

? CIF?
INCoterms? ?
Logistics?
LC?
Customs?
Banking? ? ?
Product? FOB?
? CFR?
?
Market?
? Pricing?
? Documentation?

Forex?
?
? By EXIM Guru- Koteswara Rao
 INDEX
Chapter Topics Page No.
1 How to Start Export Business – Intro 2
2 Why Need to Export 5
3 Steps to Start Export –Import Firm 6
4 Selection of Product for Export 11
5 Market Selection 13
6 Identification of Buyers 17
7 Export Pricing and Costing: 19
8 INCOTERMS 20
9 Comparative Pricing Strategy 24
10 Import and Export Payment Methods 26
11 Different Types of LCs 29
12 Processing an Export Order 32
13 Documentation 36
14 Export Promotion Schemes 37
15 Understanding Foreign Exchange 41
16 International Trade Bodies 45
17 List of Export Promotion Councils 47
18 ITC – HS Codes List 62
19 List of Ports 68
20 Top 10 Sales Mistakes 69
21 LC Proforma Copy 73
22 Important Websites 77
23 Import of Specific Categories of Goods: 82
24 Exports From India Schemes (EFIS under FTP 2015-20) 86
Merchandise Exports from India Scheme (MEIS under FTP 2015-20) 87
Service Exports from India Scheme (SEIS under FTP 2015-20) 89
25 Various useful Formats 97

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 1. How to star Start Export Business

a. Introduction

India’s Foreign Trade i.e. Exports and Imports are regulated by Foreign Trade Policy
notified by Central government in exercise of powers conferred by section 5 of foreign
trade (Development and Regulation) Act 1992. Presently Foreign Trade Policy 2015-20
is effective from 1st April, 2015. As per FTD& R act, export is defined as an act of
taking out of India any goods by land, sea or air and with proper transaction of money.

There are many aspirant entrepreneurs like startups, small and medium sized
enterprises and even manufacturers who wish to start exports business and they do not
know how to start and where to start their process. This book is to make the
participants to understand the practical process of starting Exports. Everybody is
mainly afraid of the intricate processes involved in total export deal right from starting an
export firm to till they get the realization of their proceeds to their account. Yes it is true.
But once has to know the step by step approach and the knowledge on exploring
potential markets, finding the buyers, making proper communication and offering the
products with right pricing is very important make the deals success.

Many are not able to work out on the right pricing due to lack of knowledge on
International Commercial Terms (INCOTERMS) and also in negotiating with right
logistics service provider. As a first timer, freight forwarding / customs clearing agents
will give a high quote and as a results, final pricing of the landing cost to buyers are out
of their target prices for buyers. Also exporters are not aware at what price the same is
offered by their competitors. There are various websites which offer this facility to know
at what price the similar products have been exported from Indian ports just 2 days

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before. If they are able to know this kind of information, they can tune their pricing
according the present market prices.

One more issue faced by the new entrants in exports how they get their payments and
what mode they have to mention in the offers. The main apprehension for the new
entrants is Rejections and failure of making payment by buyers. One should know what
type of payments are prevailing in international business and what precautions are to be
take to mitigate the risk of rejection and non-payments. Especially for the new entrants
they should not offer at the credit payments or payment against the delivery. Before
finalising the deal and entering into contract level, one should make a due diligence
about the buyer. For a new start ups, they can’t judge the buyers or this kind of
information is not readily available on any websites. There is one organisation called
Export Credit Guarantee Corporation of India (ECGC) which covers the export non-
payment risks subject their rules and regulations. So, one has to approach to ECGC
(www.ecgc.in) before entering into contract as first step of safety in the deal. If they
advise to go ahead in this deal, you are safe on payment part, provided if there is no
quality / non-compliance of buyer’s conditions.

If the exporter is able to offer the right price and convince the buyer to get the orders,
half battle is won. Before coming to this stage, lot of communication will happen in
terms of price, packing, specifications, shipping time and many issues. One should be
careful on reading the contract before signing. Sometimes, one the price is finalised,
buyers change the packing to the different mode or ask for customized packing, which
will eat away the anticipated profits on exports. While giving the quote itself, mention
your standard packing mode and make a remark that if there is any change in packing
or customized packing, it would be extra.

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Once deal is finalised, now the countdown starts to meet the deadlines of execution of
order to make the shipment in the stipulated agreed time. So, one has to make an Order
Execution Plan to make the shipment within stipulated time frame. For this, one has to
make the right estimation to consolidate the products, make a sorting and quality check
as per the contract stipulations and get it packed as per the buyer’s requirements.
Sometimes, buyer also put a clause to inspect the goods by third party agency or his
own inspectors before shipment. If there is any such condition, they should be informed
well in advance to undertake the pre-shipment inspection before the goods are being
shipped. Local Clearing and Forwarding (C&F) agencies will undertake the activities of
transporting your goods to the nearest ports for the custom clearance. They take the
complete responsibility till the goods / container is placed on the outbound ship as per
your requirements in your contractual norms. Wherever there is no sea port, Govt of
India has made a provision of Inland Container Depot (ICDs) to complete the custom
formalities from major export centres. Once the goods are cleared from ICD custom
authorities, it will have a direct entry to the desired port and will reach to the scheduled
ship.

To organise for the dispatch and custom clearance process, exporter has to make lot of
paper work to prepare the necessary documentation. One has to take utmost care to
prepare the documents without any errors as the money realization from the banks are
on the basis of submission of right documents. Ofcourse, most of the documents are
common and some extra documents are also required depending upon the products
especially in case of agro and pharma products. There are many service providers who
can render their services to prepare the documents and to organise the other necessary
certificates from the respective organizations. But it is necessary to understand and do it
yourself for one or two shipments to know the intricacies and to have a person
experience. Instead of spending time on procuring certificates from various
organizations, those services can be outsourced and it is recommended to focus more
time on market development.

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 2.0 Why Need to Export

There are many good reasons for exporting:

The first and the primary reason for export is to earn FOREIGN EXCHANGE. The
foreign exchange not only brings profit for the exporter but also improves the economic
condition of the country.

Secondly, companies that export their goods are believed to be more reliable than their
counterpart domestic companies assuming that exporting company has survive the test
in meeting international standards.

Thirdly, free exchange of ideas and cultural knowledge opens up immense business
and trade opportunities for a company.

Fourthly, as one starts visiting customers to sell one’s goods, he has an opportunity to
start exploring for newer customers, state-of-the-art machines and vendors in foreign
lands.

Fifthly, by exporting goods, an exporter also becomes safe from offset lack of demand
for seasonal products.

Lastly, international trade keeps an exporter more competitive and less vulnerable to
the market as the exporter may have a business boom in one sector while
simultaneously witnessing a bust in a different sector.

Above all, more exports leads to enhanced productivity in the industries, results to
more industrialization, which provides more employment and good income opportunities
through employment and business directly or indirectly.

Hence, Governemnt always focus on the promotion of EXPORTS….

No doubt that in the age of globalization and liberalizations, Export has became of the
most lucrative business in India. Government of India is also supporting exporters
through various incentives and schemes to promote Indian export for meeting the much
needed requirements for importing modern technology and adopting new technology
from MNCs through Joint ventures and collaboration.

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 3.0 Steps to Start Export –Import Firm

Following are the steps to start export-import business in a systematic way

a. Name Of Company ,

- Name should be simple and not long than 6-8 characters.

o ABC Exports, ABC International, ABC Traders, ABC Enterprises

o If sector specific, it can be ABC Pharma, ABC Agro etc.

b. Type of Business Entity

 Sole Proprietorship

o No formal registration except with any Govt. bodies/TIN/VAT

 Partnership

o Registration in Local Firm registration offices by self/agent

 Private Limited Company

o CA can help us even the following registrations as it many

compliances like Director Identification(DIN), Digital
Certification etc.

 Limited Liability Partnership (LLP)

 One Person Company (OPC)

 Public Limited Company

 Charitable Organization

Nature of business like Manufacturing, Trading or Service provider, Manufacturer

– cum- Merchant Exporet is also be decided.

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c. PAN No.

It is necessary for every exporter and importer to obtain a PAN from the
Income Tax Department. If Sole Proprietorship, self PAN will be sufficient.
For rest of the registrations, PAN should be in the name of the company

d. Bank Account

A current account with a Bank authorised to deal in Foreign Exchange should

be opened. It can be Nationalised or Private Banks or International Banks

e. Obtaining Importer-Exporter Code (IEC) Number

IEC mandatory for undertaking export/ import business activities It will be

issued by the Regional authority of Director General of Foreign Trade
(DGFT). Now the facility for IEC in electronic form or e-IEC has also been
operationalised.

(a) Application for e-IEC has to be filed online in ANF 2A, in accordance with
Para 2.08 of Handbook of Procedure on payment of application fee of Rs.
500/-, to be paid online through net banking or credit/debit card (to be
operationalised shortly). Documents/ details required to be uploaded/
submitted along with the application form are listed in the Application Form
(ANF 2A).

(b) When an e-IEC is approved by the competent authority, applicant is

informed through e-mail that a computer generated e-IEC is available on the
DGFT website. By clicking on “Application Status” after having filled and
submitted the requisite details in “Online IEC Application” webpage, applicant
can view and print his e-IEC.

(c) Briefly, following are the requisite details /documents (scanned copies) to
be submitted/ uploaded along with the application for IEC:

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 (i) Details of the entity seeking the IEC:

(1) PAN of the business entity in whose name Import/Export would be

done (Applicant individual in case of Proprietorship firms).

(2) Address Proof of the applicant entity.

(3) LLPIN /CIN/ Registration Certification Number (whichever is

applicable).

(4) Bank account details of the entity. Cancelled Cheque bearing entity’s
preprinted name or Bank certificate in prescribed format ANF2A(I).

(ii) Details of the Proprietor/ Partners/ Directors/ Secretary or Chief Executive

of the Society/ Managing Trustee of the entity:

(1) PAN (for all categories), (2) DIN/DPIN (in case of Company /LLP firm)

(iii) Details of the signatory applicant:

(1) Identity proof , (2) PAN , (3) Digital photograph

(d) Application has to be submitted online with Digital Signature to the

concerned jurisdictional RA and no physical application is required to submit.

(e) Detailed guidelines for applying for e-IEC are available at : .

http://dgft.gov.in/exim/2000/%20iec_anf/iecanf.htm

No Export/Import without IEC:

(i) No export or import shall be made by any person without obtaining an

IEC number unless specifically exempted.

(ii) Exempt categories and corresponding permanent IEC numbers are

given in Para 2.07 of Handbook of Procedures.

(III) Only one IEC against one Permanent Account Number (PAN) Only
one IEC is permitted against on Permanent Account Number (PAN).

If any PAN card holder has more than one IEC, the extra IECs shall be
disabled.

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f. Registration Cum Membership Certificate (RCMC)

For availing authorization to import/ export or any other benefit or concession

under FTP 2015-20, as also to avail the services/ guidance, exporters are
required to obtain RCMC granted by the concerned Export Promotion Councils/
FIEO/Commodity Boards/ Authorities.

At Present, we have 28 different Export Promotion Councils, 6 Commodity

Boards, and 3 Development Authories. Pl refer list of the Export Promotion
Councils. As per the product, exporter has to register with concerned product
council and more than one product, they can register for multi products with FIEO
(Federation of Indian Export Organisations). If Agriculture products are among
multi products, they have to invariably register with APEDA (Agriculture and
Processed Food Products Development Authority) to get necessary certifications
for the export of agri products.

g. GST (Good and Service Tax)

Goods exported out of the country are Zero Rated. So, to get the benefit of tax
exemption it is important for an exporter to get registered with the GST
Authorities. Registration is required for Manufacturers, Traders, Exporters and
Dealers. It has to be applied to concerned Commercial Tax Department The
GST number should appear on all Quotations/Orders/Invoices by both Sending
Company and Receiving Company.

h. Website / Email

The main reason that it is important for businesses to have a website is how
people are likely to find you. These days most people will go online and research
products and companies before they make a purchase, if you don't have a
website you are missing out on all of this potential business. Even if people don't
buy your product online they are still likely to research it online so you have to

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have a website so these people can learn about your business.A website is also
important because it helps you establish credibility as a business.

A website will not only give you credibility but it will also help to give the
impression that your company is bigger and more successful than it may actually
be. One of the great things about the internet is that the size of your company
does not really matter. There is no reason that you can't get your site to rank in
Google ahead of a large multinational competitor and funnel off some of their
traffic. This is a big part of the reason that a website is even more important for a
small business than a big one, it tends to level the playing field.

Website can be built for very little money and if you are on a tight budget you can
even get free websites. Remember you don't need a giant ten thousand page
website for your business, just a simple site that tells people about your company
and your products will be more than enough.

Any business that does not have a website is missing out on one of the most
powerful marketing tools available to them.

Select a right domain name as per your company title and get a good web
designer to prepare the site in international standard as you are going to expose
the site internationally.

Promote your website on various platforms and listings with leading trade portals.
Effective and economic Marketing promotion can be done with Google Adwords
to reach the target clients.

Always use the official mail ids for communication with the clients and also to
register with various websites. Don’t use the public domains mail ids like
gmail.com, hotmail.com or any other public domain ids.

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 4.0 Selection of Product for Export

A key factor in any export business is clear understanding and detail knowledge of
products to be exported. The selected product must be in demand in the countries
where it is to be exported. Before making any selection, one should also consider the
various government policies associated with the export of a particular product.

All items are freely exportable except few items appearing in prohibited/ restricted list.
After studying the trends of export of different products from India proper selection of
the product(s) to be exported may be made. Whether companies are exporting first time
or have been in export trade for a long time - it is better for both the groups to be
methodical and systematic in identifying a right product.

There are products that sell more often than other product in international market. It is
not very difficult to find them from various market research tools. However, such
products will invariably have more sellers and consequently more competition and fewer
margins. On the other hand - a niche product may have less competition and higher
margin - but there will be far less buyers. Fact of the matter is - all products sell,
though in varying degrees and there are positive as well as flip sides in whatever
decision you take - popular or niche product.

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4.1 Key Factors in Product Selection

 The product should be manufactured or sourced with consistent standard quality,

comparable to your competitors. ISO or equivalent certification helps in selling
the product in the international market.
 If possible, avoid products which are monopoly of one or few suppliers. If you are
the manufacturer - make sure sufficient capacity is available in-house or you
have the wherewithal to outsource it at short notice. Timely supply is a key
success factor in export business
 The price of the exported product should not fluctuate very often - threatening
profitability to the export business.
 Strictly check the government policies related to the export of a particular
product. Though there are very few restrictions in export - it is better to check
regulatory status of your selected product.
 Carefully study the various government incentive schemes and tax exemption
like duty drawback and special incentives .
 Import regulation in overseas markets, specially tariff and non-tariff barriers. If
your product attracts higher duty in target country - demand obviously falls.
 Registration/Special provision for your products in importing country. This is
specially applicable for processed food and beverages, drugs and chemicals.
 Seasonal vagaries of selected products as some products sell in summer, while
others in winter. Festive season is also important factor, for example certain
products are more sellable only during Christmas.
 Keep in mind special packaging and labeling requirements of perishable products
like processed food and dairy products.
 Special measures are required for transportation of certain products, which may
be bulky or fragile or hazardous or perishable.
 Above all, the beginners should focus on the products which they are having
some product knowledge for easy sourcing and command over the
product/sector. Once successful, they can expand to any number of products.

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 5 Market Selection

An overseas market should be selected after research covering market size,

competition, quality requirements, payment terms etc. Exporters can also evaluate the
markets based on the export benefits available for few countries under the FTP 2015-
20. Export promotion agencies, Indian Missions abroad, colleagues, friends, and
relatives might be helpful in gathering information.

There are numerous accesable markets worldwide that seem to offer a high potential for
exports, however the real questions are; how to select your market and how to target it
smartly. Credible information is what you need to select your appropriate export market.
Using Ministry of Commerce website, a chamber of commerce, industry associations,
relevant export authorities and business colleagues might be of assistance. However
few will give you specific advice, but you can quite easily gain quality knowledge on
which markets to aim at globally.

Statistical data analysis is essential when selecting the market. You can obtain useful
information from the Ministry of Commerce (www.commerce.nic.in) and Director
General of Commercial Intelligence and Statistics (www.dgciskol.nic.in) are some of
the reliable sources which collects international trade data. Some companies are able to
provide you with very specific export/import data about products similar to yours and
about the most popular markets, at a price.

It's important when selecting a market you should:

 Know the market's requirements

 Assess your target customers

 Examine your competitors

 Be prepared to compete against lower-cost, lower-priced local companies

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5.1 Selection of potential country
Once the product is identified for export, then next step is to focus on the market where
it has the potential. Everybody jump on website like www.alibaba.com,
www.indiamart.com, www.tradeindia.com, and www.exportersindiacom etc. to know the
potential for their products. In real sense, they do not give any such indication or
direction as they are trade portals, where in buyer is posting their requirements and
seller is posting their sell offers. Ministry of Commerce, Govt. of India has its own
website www.commerce.nice.in is giving lot of information on India’s Trade and
complete details of Export and Import Databank to know the potential any products in
various countries. Similarly the country focus where which are all the products are
getting imported in that particular country. Screenshot of the website showing all the
details are given below:

Log on to http://commerce.nic.in/eidb/default.asp:

Select the option of commodity-wise all countries

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From this window, Search option to write the name of the product / HS code to find out
the exact commodity you want to search.

Write commodity name in description and enter. .

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On clicking, following screen will be displayed. Select the right product you would like to
search the potential markets.

On selecting 100630 (semi/wholly milled rice), it would display the following screen
showing the exporting countries in descending order

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The above data of 2013-14 shows the top 5 countries which have imported Parboiled
Rice are Iran, Saudi, Benin, UAE. That shows that we have wide acceptance of Indian
rice in those markets and one can focus those markets for RICE. Similarly one can
identify the potential countries for the desired products from the relaiable sources of
Government of India.

This shows the potential countries list and it is upto the exporter to choose the specific
country or countries to target.

6. Identification of Buyers

Then next step is identification of buyers in those countries. Every country’s customs
maintain their importers database and some of the sites are selling the past shipment
data for the benefit of exporters. One of the examples is shown below to know the
importers in Canada for the rice: It can be seen from:
www.strategis.ic.gc.ca/app/scr/ic/sbms/cid/searchProduct.html?lang=eng

Name of the importers can also be found from this kind of websites:

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Similarly past shipment data is also available from various ports sold out by various
service providers like www.infodriveindia.com, www.cybex.in and various other websites
also provide this kind of databases. Apart from this, registering in various websites like
www.indiamart.com, www.expertersindia.com , www.indiamart.com,
www.tradeindia.com etc will help you to generate the leads. Most important is to focus
on the country specific website would help to generate more business as per your
products potential. Apart from this various other source are also available which needs
to be explored.

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 7.0 Export Pricing and Costing:

Pricing and costing are two different things and an exporter should not confuse between
the two. Price is what an exporter offer to a customer on particular products while cost is
what an exporter pay for manufacturing the same product.

Export pricing is the most important factor in for promoting export and facing
international trade competition. It is important for the exporter to keep the prices down
keeping in mind all export benefits and expenses. However, there is no fixed formula for
successful export pricing and is differ from exporter to exporter depending upon whether
the exporter is a merchant exporter or a manufacturer exporter or exporting through a
canalising agency.

7.1 Determining Export Pricing

Export Pricing can be determined by the following factors:

 Range of products offered.

 Prompt deliveries and continuity in supply.

 After-sales service in products like machine tools, consumer durables.

 Product differentiation and brand image.

 Frequency of purchase.

 Presumed relationship between quality and price.

 Specialty value goods and gift items.

 Credit offered.

 Preference or prejudice for products originating from a particular source.

 Aggressive marketing and sales promotion.

 Prompt acceptance and settlement of claims.

 Unique value goods and gift items.

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7.2 Export Costing :

Export Costing is basically Cost Accountant's job. It consists of fixed cost and variable
cost comprising various elements. It is advisable to prepare an export costing sheet for
every export product. Here we are not going in deep on costing of the products. We are
considering the product cost and understanding the International Commercial Terms.

8.0 INCOTERMS (International Commercial Terms)

The Incoterms® rules have become an essential part of the daily language of trade.
They have been incorporated in contracts for the sale of goods worldwide and provide
rules and guidance to importers, exporters, lawyers, transporters, insurers and students
of international trade.

Below are short descriptions of the 11 rules from the Incoterms® 2010 edition.

EXW – EX Works

FCA – Free Career

FAS - Free Alongside Ship

FOB – Free on Board

CFR – Cost and Feight

CIF – Cost, Insurance and Feight

CPT – Carriage Paid To

CIP – Carriage and Insurance Paid To

DAT – Delivery At Terminal

DAP – Delivery At Place

DDP – Delivery Duty Paid

These INCOTERMS are common for all the countries for export and import and very
important to arrive the cost for specific incoterms. Cost of the merchandise will differ as
per the terms desired by the importer. So, exporter / importer should have clear
understanding of these terms.

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EXW – EX Works
“Ex Works” means that the seller delivers when it places the goods at the
disposal of the buyer at the seller’s premises or at another named place
(i.e.,works, factory, warehouse, etc.). The seller does not need to load the
goods on any collecting vehicle, nor does it need to clear the goods for
export, where such clearance is applicable.

FCA – Free Career

Free Carrier means that the seller delivers the goods to the carrier or
another person nominated by the buyer at the seller’s premises or another
named place. The parties are well advised to specify as clearly as
possible the point within the named place of delivery, as the risk passes to
the buyer at that point.

FAS-- Free Alongside Ship

Free Alongside Ship means that the seller delivers when the goods are
placed alongside the vessel (e.g., on a quay or a barge) nominated by the
buyer at the named port of shipment. The risk of loss of or damage to the
goods passes when the goods are alongside the ship, and the buyer
bears all costs from that moment onwards.

FOB – Free on Board

Free On Board means that the seller delivers the goods on board the
vessel nominated by the buyer at the named port of shipment or procures
the goods already so delivered. The risk of loss of or damage to the goods
passes when the goods are on board the vessel, and the buyer bears all
costs from that moment onwards

CFR – Cost and Feight

Cost and Freight means that the seller delivers the goods on board the
vessel or procures the goods already so delivered. The risk of loss of or
damage to the goods passes when the goods are on board the vessel. the
seller must contract for and pay the costs and freight necessary to bring
the goods to the named port of destination.

CIF – Cost, Insurance and Freight

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 “Cost, Insurance and Freight” means that the seller delivers the goods on
board the vessel or procures the goods already so delivered. The risk of
loss of or damage to the goods passes when the goods are on board the
vessel. The seller must contract for and pay the costs and freight
necessary to bring the goods to the named port of destination.

CPT – Carriage Paid To

Carriage Paid To” means that the seller delivers the goods to the carrier or
another person nominated by the seller at an agreed place (if any such
place is agreed between parties) and that the seller must contract for and
pay the costs of carriage necessary to bring the goods to the named place
of destination.

CIP – Carriage and Insurance Paid To

Carriage and Insurance Paid to” means that the seller delivers the goods
to the carrier or another person nominated by the seller at an agreed place
(if any such place is agreed between parties) and that the seller must
contract for and pay the costs of carriage necessary to bring the goods to
the named place of destination

DAT – Delivery At Terminal

Delivered at Terminal” means that the seller delivers when the goods,
once unloaded from the arriving means of transport, are placed at the
disposal of the buyer at a named terminal at the named port or place of
destination. “Terminal” includes a place, whether covered or not, such as
a quay, warehouse, container yard or road, rail or air cargo terminal. The
seller bears all risks involved in bringing the goods to and unloading them
at the terminal at the named port or place of destination.

DAP – Delivery At Place

“Delivered at Place” means that the seller delivers when the goods are
placed at the disposal of the buyer on the arriving means of transport

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 ready for unloading at the named place of destination. The seller bears all
risks involved in bringing the goods to the named place.

DDP – Delivery Duty Paid

Delivered Duty Paid means that the seller delivers the goods when the
goods are placed at the disposal of the buyer, cleared for import on the
arriving means of transport ready for unloading at the named place of
destination. The seller bears all the costs and risks involved in bringing the
goods to the place of destination and has an obligation to clear the goods
not only for export but also for import, to pay any duty for both export and
import and to carry out all customs formalities.
If the exporter is a manufacturer, he is aware of the product pricing and it has to be
offered for selling after including profit margin. Whenever positive response comes from
the buyer’s side, they will ask mostly for the prices in terms of FOB, CNF or CIF in
general. International Commercial Terms (INCOTERMS) need to understand to give a
quote to the buyer. As per the latest version of INCOTERMS there are 11 terms. To
give a pricing, exporters need the help of Clearing and Forwarding agents who gives us
the logistics cost means transporting goods from exporter’s godown to till export
clearance or till the merchandise reaches to importers godown depending upon the
INCOTERM.

When the pricing is calculated on the basis of product cost+profit+logistics cost,

sometimes the price would be out of the target price of buyers. In this case, exporter
has to rework on the pricing where cost can be cut down. Also there is a need to know
whether buyer target is right or wrong. Many buyers ask for rock bottom prices, which is
below manufacturing cost or purchase price of trader. In this case, exporters can refer
to one of the excellent site www.ieport.com / www.zauba.com which are providing
market intelligence of 2 days before exported shipments from all Indian ports. This is a
guiding factor the pricing whether the buyer price is matching with the market prices.

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9.0 Comparative Pricing Strategy:

The above sites will give the latest exported /imported prices of 2days before as shown
below:

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Apart from the latest exported pricing, we can also see how many shipments have left
from which port. Data can be accessed as per the following filters :

(At Present Govt. has put a restriction of showing such Data and organizations are
lobbying with Ministry of Commerce to release such data. If released, it would be good
for exporters. Otherwise also data available at Cost and following chapters speaks
about such Shipment data sites)

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 10. Import and Export Payment Methods

There are several basic Export Payment Methods - Import Payment Methods for
products sold abroad. As with domestic sales, a major factor that determines the
method of payment is the amount of trust in the buyer's ability and willingness to pay.
For sales within our country, if the buyer has good credit, sales are usually made on
open account; if not, cash in advance is required. For export sales, these same
methods may be used; however, other methods are also often used in international
trade. Ranked in order from most secure for the exporter to least secure, the basic
methods of payment are

Cash in advance,

Letter of Credit,

Documentary collection or draft,

Open account and

Consignment sales.

Since getting paid in full and on time is of utmost concern to exporters, risk is a major
consideration. Many factors make exporting riskier than domestic sales. However, there
are also several methods of reducing risks. One of the most important factors in
reducing risks is to know what risks exist. For that reason, exporters are advised to
consult an international banker to determine an acceptable method of payment for each
specific transaction.

10.1 Cash in advance:

Cash in advance before shipment may seem to be the most desirable

method of all, since the shipper is relieved of collection problems and has
immediate use of the money if a wire transfer is used. On the other hand,
advance payment creates cash flow problems and increases risks for the
buyer. Thus, cash in advance lacks competitiveness; the buyer may refuse
to pay until the merchandise is received.

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10.2 Letter of Credit:

An Exporter if dealing with an unknown customer at the other end may not have any
prior exposure to the credit worthiness of the Customer and would normally insist on
Confirmed Letter of Credit to be opened by the Customer before shipping the goods. In
such cases the Exporter may not be extending any credit. Also in case of high value
transactions with known customers too; exporters prefer to get paid through Letter of
Credit.

While dealing with a customer, the Exporter can check seek a credit worthiness rating
from the customer’s bank to be able to ascertain the authenticity and credibility of the
Customer. Normally Large Multi Nationals demand such credit worthiness reports as a
part of their policy.

10.3 Documentary collection or draft:

A documentary collection (D/C) is a transaction whereby the exporter entrusts the

collection of the payment for a sale to its bank (remitting bank), which sends the
documents that its buyer needs to the importer’s bank (collecting bank), with
instructions to release the documents to the buyer for payment. Funds are received
from the importer and remitted to the exporter through the banks involved in the
collection in exchange for those documents. D/Cs involve using a draft that requires the
importer to pay the face amount either at sight (Document against Payment- DP) or
on a specified date (Document against Acceptance- DA). The collection letter gives
instructions that specify the documents required for the transfer of title to the goods.
Although banks do act as facilitators for their clients, D/Cs offer no verification process
and limited recourse in the event of non-payment. D/Cs are generally less expensive
than LCs.

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10.4 Open account:

An open account transaction is a sale where the goods are shipped and delivered
before payment is due, which in international sales is typically in 30, 60 or 90 days.
Obviously, this is one of the most advantageous options to the importer in terms of cash
flow and cost, but it is consequently one of the highest risk options for an exporter.
Because of intense competition in export markets, foreign buyers often press exporters
for open account terms since the extension of credit by the seller to the buyer is more
common abroad. Therefore, exporters who are reluctant to extend credit may lose a
sale to their competitors. When offering open account terms, the exporter can seek
extra protection under Export Credit Guaranee Corporation of India ( ECGC).

10.5 Consignment sales.

Consignment in international trade is a variation of open account in which payment is

sent to the exporter only after the goods have been sold by the foreign distributor to the
end customer. An international consignment transaction is based on a contractual
arrangement in which the foreign distributor receives, manages, and sells the goods for
the exporter who retains title to the goods until they are sold. Clearly, exporting on
consignment is very risky as the exporter is not guaranteed any payment and its goods
are in a foreign country in the hands of an independent distributor or agent.
Consignment helps exporters become more competitive on the basis of better
availability and faster delivery of goods. Selling on consignment can also help exporters
reduce the direct costs of storing and managing inventory. The key to success in
exporting on consignment is to partner with a reputable and trustworthy foreign
distributor or a third-party logistics provider. Appropriate insurance should be in place to
cover consigned goods in transit or in possession of a foreign distributor as well as to
mitigate the risk of non-payment.

10.6 New Payment Risk Diagram

Least Secure Less Secure More Secure Most Secure

Exporter Consignment Open Documentary Letters of Cash-in-

Account Collections Credit Advance

Importer Cash-in- Letters of Documentary Open Consignment

Advance Credit Collections Account

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 11.0 Documentary Letter of Credit (LCs) – Types

a. Irrevocable

An irrevocable LC cannot be cancelled or amended without the consent of all parties. It

is irrelevant if the buyer changes their mind or even goes out of business. The seller is
assured of payment against supply of goods or services provided all terms and
conditions of the LC are conformed to. With this type of an LC, the exporter can borrow
short term finance from any bank or lending institution at a reasonable rate of interest

b. Revocable

Revocable LC can be cancelled or amended by either party without any consent.

Beneficiary has meager chances to get a revocable letter of credit discounted. UCPDC
states that all LCs issued under the rule (UCP 600) will be deemed to be irrevocable
hence revocable LCs are no longer in the market.

c. Revolving

Revolving LC is suitable where a series of identical shipment is to be made, it is

possible to raise one LC to cover all of them rather than a separate LC for each
shipment, the amount payable is reinstated for the next shipment. Till the upper limit of
the LC value is met, bank generally provides an option to the importer applicant to
reinstate the LC upon payment or with an amendment. The exporter does not have to

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go to the bank for sanction of fresh limits every time he gets a new order for executing
the same.

d. Confirmed

Exporter’s interest and insecurity may instigate them to obtain the promise of payment
from a bank in their own country, by adding their confirmation to the LC; this is addition
to the issuing bank promise. Unconfirmed LC is the one which has not acquired
confirmation from other bank.

e. Transferable

In case of a transferable LC, middleman operates between a manufacturer and an end

user; it is possible for an LC to be raised showing the agent as the beneficiary but also
allowing the transfer of a percentage of LC to the manufacturer. The difference in the
value of both the LCs is agent’s profit and both the agent as well as the manufacturer
must meet the conditions of the LC to obtain their payment. The letter of credit must
clearly state that it is transferable for it to be considered as such. This is a common
FINANCING tactic for middlemen and is common in East Asia.

f. Deferred payment

Deferred payment under LC is becoming increasing popular where an LC term has

been signed but the parties wish to avoid raising a bill of exchange under the LC. This
will usually be because the bills attract stamp duty in the issuing country. When correct
documents are presented, the bank does not “accept” a bill of exchange but instead
gives a ‘letter of undertaking’ advising where the money will be paid.

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f. Standby

Standby type of LC is not very common as importers as standby LC is a combination of

a bank guarantee and a documentary credit. Payment is made against a draft,
statement or certain other basic documents, documents evidencing shipment of
merchandise is usually not called for under this type of LC. Standby LC can be issued
under International Standby Practices (ISP98) or Uniform customs and practices for
Documentary Credits (UCPDC 600).They are used in two situations

ü Where the seller is trading on open account but requires some security of payment.
They are raised by the buyer as a normal LC but require the issuing bank to make
payment to the seller only on presentation of documents evidencing non-payment by
the buyer within the open account agreement. This is to say, as long as the buyer
continues to pay on time under the open account, the LC will not be drawn on or called
upon and will expire without any presentation.

ü Standby LC can also be used to replace performance bond issued by the buyer and
required under most procedures. They have the advantage over normal bonds of being
regulated by the UCP 600 rule. They are well known in the U.S. and becoming
increasing popular in many other markets.

g. Back to Back

In back to back LC, one irrevocable LC facilitates the exporter or the beneficiary to
obtain another LC as an applicant. Back to back LC is typically used by the agent to
hide the identity of the real supplier of the goods or services. First LC can be used as a
security to issue another. Such transactions originate when a seller receives a letter of
credit covering goods which must be obtained from a third party that in turn requires a
letter of credit. The “second” issuing bank looks to the first issuing bank for
reimbursement after paying under the second letter of credit.

Letter of credit, be it revolving, back to back or transferable if issued under UCPDC 600
is always an irrevocable letter of credit, irrevocable has become more of an inherent
character of the LC than the type.

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 12.0 Processing an Export Order

i. Confirmation of order

On receiving an export order, it should be examined carefully in respect of items,

specification, payment conditions, packaging, delivery schedule, etc. and then
the order should be confirmed. Accordingly, the exporter may enter into a formal
contract with the overseas buyer.

ii. Procurement of Goods

After confirmation of the export order, immediate steps may be taken for
procurement/manufacture of the goods meant for export. It should be
remembered that the order has been obtained with much efforts and competition
so the procurement should also be strictly as per buyer’s requirement.

iii. Quality Control

In today’s competitive era, it is important to be strict quality conscious about the

export goods. Some products like food and agriculture, fishery, certain
chemicals, etc. are subject to compulsory pre-shipment inspection. Foreign
buyers may also lay down their own standards/specifications and insist upon
inspection by their own nominated agencies. Maintaining high quality is
necessary to sustain in export business.

iv. Finance

Exporters are eligible to obtain pre-shipment and post-shipment finance from

Commercial Banks at concessional interest rates to complete the export
transaction. Packing Credit advance in pre-shipment stage is granted to new
exporters against lodgment of L/C or confirmed order for 180 days to meet
working capital requirements for purchase of raw material/finished goods, labour
expenses, packing, transporting, etc. Normally Banks give 75% to 90%
advances of the value of the order keeping the balance as margin. Banks adjust

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the packing credit advance from the proceeds of export bills negotiated,
purchased or discounted.

Post Shipment finance is given to exporters normally upto 90% of the Invoice
value for normal transit period and in cases of usance export bills upto notional
due date. The maximum period for post-shipment advances is 180 days from the
date of shipment. Advances granted by Banks are adjusted by realization of the
sale proceeds of the export bills. In case export bill becomes overdue Banks will
charge commercial lending rate of interest .

v. Labeling, Packaging, Packing and Marking

The export goods should be labeled, packaged and packed strictly as per the
buyer’s specific instructions. Good packaging delivers and presents the goods in
top condition and in attractive way. Similarly, good packing helps easy handling,
maximum loading, reducing shipping costs and to ensuring safety and standard
of the cargo. Marking such as address, package number, port and place of
destination, weight, handling instructions, etc. provides identification and
information of cargo packed. Please note that labeling should be in the local
language of importing countries like Middle East requires Arabic language.

vi. Insurance

Marine insurance policy covers risks of loss or damage to the goods during the
while the goods are in transit. Generally in CIF contract the exporters arrange the
insurance whereas for C&F and FOB contract the buyers obtain insurance policy .

vii. Delivery

It is important feature of export and the exporter must adhere the delivery
schedule. Planning should be there to let nothing stand in the way of fast and
efficient delivery.

viii. Customs Procedures

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It is necessary to obtain PAN based Business Identification Number (BIN) from
the Customs prior to filing of shipping bill for clearance of export good and open a
current account in the designated bank for crediting of any drawback amount and
the same has to be registered on the system.

In case of Non-EDI, the shipping bills or bills of export are required to be filled in
the format as prescribed in the Shipping Bill and Bill of Export (Form) regulations,
1991. An exporter need to apply different forms of shipping bill/ bill of export for
export of duty free goods, export of dutiable goods and export under drawback
etc.

Under EDI System, declarations in prescribed format are to be filed through the
Service Centers of Customs. A checklist is generated for verification of data by
the exporter/CHA. After verification, the data is submitted to the System by the
Service Center operator and the System generates a Shipping Bill Number,
which is endorsed on the printed checklist and returned to the exporter/CHA. In
most of the cases, a Shipping Bill is processed by the system on the basis of
declarations made by the exporters without any human intervention. Where the
Appraiser Dock (export) orders for samples to be drawn and tested, the Customs
Officer may proceed to draw two samples from the consignment and enter the
particulars thereof along with details of the testing agency in the ICES/E system.

Any correction/amendments in the check list generated after filing of declaration

can be made at the service center, if the documents have not yet been submitted
in the system and the shipping bill number has not been generated. In situations,
where corrections are required to be made after the generation of the shipping
bill number or after the goods have been brought into the Export Dock,
amendments is carried out in the following manners .

1. The goods have not yet been allowed "let export" amendments may be permitted by
the Assistant Commissioner (Exports).

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 2. Where the "Let Export" order has already been given, amendments may be permitted
only by the Additional/Joint Commissioner, Custom House, in charge of export
section.

In both the cases, after the permission for amendments has been granted, the
Assistant Commissioner / Deputy Commissioner (Export) may approve the
amendments on the system on behalf of the Additional /Joint Commissioner.
Where the print out of the Shipping Bill has already been generated, the exporter
may first surrender all copies of the shipping bill to the Dock Appraiser for
cancellation before amendment is approved on the system.

ix. Customs House Agents

Exporters may avail services of Customs House Agents (CHA) licensed by the
Commissioner of Customs. They are professionals and facilitate work connected
with clearance of cargo from Customs. Mostly these CHAs have their own
channel of Claring and Forwarding team to whom normally called as C&F Agents
or Freight Forwarders. There are separate line of Freight Forwarders / C&F
Agents who are connected to various CHAs.

Right from working on giving quote to buyers, we need their services to get the
freight charges from exporter godown to custom clearance in case of FOB and
ocean freight in case of CFR/CIF.

Role of Freight Forwarders / C&F agents are very crucial in exports / imports as
they are going to take of total responsibility right from collecting required
documents to log on to the customs website to prepare a shipping bill, organisng
consignment transport, getting customs clearance and till loading our
consignment on ship/flight. Finally he will give us the custom endorsed
documents and also Bill of Lading / Airway Bill as proof of exports which is one of
the main commercial document.

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 13.0 Documentation

FTP 2015-2020 describe the following mandatory documents for import and
export.

 Bill of Lading/ Airway bill

 Commercial invoice cum packing list
 shipping bill/ bill of export/ bill of entry (for imports)

(Other documents like certificate of origin, inspection certificate etc may be

required as per the case.)

13.1 Submission of documents to Bank

After shipment, it is obligatory to present the documents to the Bank within 21

days for onward dispatch to the foreign Bank for arranging payment. Documents
should be drawn under Collection/Purchase/Negotiation under L/C as the case
may be, along with the following documents

- Bill of Exchange- Letter of Credit (if shipment is under L/C)

- Invoice

- Packing List

- Airway Bill/Bill of Lading

- Declaration under Foreign Exchange

- Certificate of Origin/GSP

- Inspection Certificate, wherever necessary

- Any other document as required in the L/C or by the buyer or statutorily.

13.2 Realization of Export Proceeds

As per FTP 2015-2020, all export contracts and invoices shall be denominated
either in freely convertible currency of Indian rupees, but export proceeds should
be realized in freely convertible currency except for export to Iran. Export
proceeds should be realized in 9 months.

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 14.0 . EXPORT PROMOTION SCHEMES

Foreign Trade Policy 2015-20 and other schemes provide promotional measures to
boost India’s exports with the objective to offset infrastructural inefficiencies and
associated costs involved to provide exporters a level playing field. Brief of these
measures are as under:

i. Merchandise Exports from India Scheme (MEIS)

Under this scheme, exports of notified goods/ products to notified markets as

listed in Appendix 3B of Handbook of Procedures, are granted freely
transferable duty credit scrips on realized FOB value of exports in free
foreign exchange at specified rate (2-5%). Such duty credit scrips can be
used for payment of custom duties for import of inputs or goods, payment of
excise duty on domestic procurement, payment of service tax and payment
of custom duties in case of EO default.

Exports of notified goods of FOB value upto Rs 25, 000 per consignment,
through courier or foreign post office using e-commerce shall be entitled for
MEIS benefit.

ii. Service Exports from India Scheme (SEIS)

Service providers of notified services as per Appendix 3E are eligible for

freely transferable duty credit scrip @ 5% of net foreign exchange earned.

14.1 DUTY EXEMPTION & REMISSION SCHEMES

These schemes enable duty free import of inputs for export production with export
obligation. These scheme consists of:-

1 Advance Authorization Scheme

Under this scheme, duty free import of inputs are allowed, that are physically
incorporated in the export product (after making normal allowance for
wastage) with minimum 15% value addition. Advance Authorization (AA) is
issued for inputs in relation to resultant products as per SION or on the basis

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 of self declaration, as per procedures of FTP. AA normally have a validity
period of 12 months for the purpose of making imports and a period of 18
months for fulfillment of Export Obligation (EO) from the date of issue. AA is
issued either to a manufacturer exporter or merchant exporter tied to a
supporting manufacturer(s).

2 Advance Authorization for annual requirement

Exporters having past export performance (in at least preceding two financial
years) shall be entitled for Advance Authorization for Annual requirement.
This shall only be issued for items having SION.

3 Duty Free Import Authorization (DFIA) Scheme

DFIA is issued to allow duty free import of inputs, with a minimum value
addition requirement of 20%. DFIA shall be exempted only from the payment
of basic customs duty. DFIA shall be issued on post export basis for
products for which SION has been notified. Separate schemes exist for
gems and jewellery sector for which FTP may be referred.

4 Duty Drawback of Customs/Central Excise Duties/Service Tax

The scheme is administered by Department of Revenue. Under this scheme

products made out of duty paid inputs are first exported and thereafter
refund of duty is claimed in two ways:

i) All Industry Rates : As per Schedule

ii) Brand Rate : As per application on the basis of

data/documents

5 Rebate of Service tax through all industry rates

Refund of service tax paid on specified output services used for export of
goods is available at specified all industry rates.

14.2 EPCG SCHEME

1 Zero duty EPCG scheme

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 Under this scheme import of capital goods at zero custom duty is allowed for
producing quality goods and services to enhance India’s export
competitiveness. Import under EPCG shall be subject to export obligation
equivalent to six times of duty saved in six years. Scheme also allows
indigenous sourcing of capital goods with 25% less export obligation.

2 Post Export EPCG Duty Credit Scrip Scheme

A Post Export EPCG Duty Credit Scrip Scheme shall be available for
exporters who intend to import capital goods on full payment of applicable
duty in cash.

14.3. EOU/EHTP/STP & BTP SCHEMES

Units undertaking to export their entire production of goods and services

may be set up under this scheme for import/ procurement domestically
without payment of duties. For details of the scheme and benefits available
therein FTP may be required.

14.4 OTHER SCHEMES

1 Towns of Export Excellence (TEE)

Selected towns producing goods of Rs. 750 crores or more are notified as
TEE on potential for growth in exports and provide financial assistance
under MAI Scheme to recognized Associations.

2 Rebate of duty on “export goods” and “material” used in

manufacture of such goods

Rebate of duty paid on excisable goods exported or duty paid on the

material used in manufacture of such export goods may be claimed under
Rule of 18 of Central Excise Rules, 2002.

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3 Export of goods under Bond i.e. without payment of excise duty

Rule 19 of Central Excise Rules 2002 provides clearance of excisable goods

for exports without payment of central excise duty from the approved factory,
warehouse and other premises.

4 Market Access Initiative (MAI) Scheme

Under the Scheme, financial assistance is provided for export promotion

activities on focus country, focus product basis to EPCs, Industry & Trade
Associations, etc. The activities are like market studies/surveys, setting up
showroom/warehouse, participation in international trade fairs, publicity
campaigns, brand promotion, reimbursement of registration charges for
pharmaceuticals, testing charges for engineering products abroad, etc.
Details of the Scheme is available at www.commerce.nic.in

5 Marketing Development Assistance (MDA) Scheme

Financial assistance is available for exporters having an annual export turnover upto
Rs. 30 crores for trade fairs, buyer seller meets organized by EPC’s/ Trade promotion
organizations. MDA guidelines available at www.commerce.nic.in

6 Status Holder Scheme

Upon achieving prescribed export performance, status recognition as one

star Export House, two Star Export House, three star export house, four star
export house and five star export house is accorded to the eligible applicants
as per their export performance. Such Status Holders are eligible for various
non-fiscal privileges as prescribed in the Foreign Trade Policy.

In addition to the above schemes, facilities like 24X7 customs clearance,

single window in customs, self assessment of customs duty, prior filing
facility of shipping bills etc are available to facilitate exports.

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 15.0 Understanding Foreign Exchange

An exporter without any commercial contract is completely exposed of FOREIGN

EXCHANGE risks that arises due to the probability of an adverse change
in EXCHANGE RATES. Therefore, it becomes important for the exporter to gain some
knowledge about the foreign exchange rates, quoting of exchange rates and various
factors determining the exchange rates. In this section, we have discussed various
topics related to foreign exchange rates in detail.

15.1 Spot Exchange Rate

Also known as "benchmark rates", "straightforward rates" or "outright rates", spot rates
represent the price that a buyer expects to pay for a foreign currency in another
currency. Settlement in case of spot rate is normally done within one or two working
days.

15.2 Forward Exchange Rate

The forward EXCHANGE RATE refers to an EXCHANGE RATE that is quoted and
traded today but for delivery and payment on a specific future date.

15.3 Method of Quoting Exchange Rates

There are two methods of quoting exchange rates:

 Direct Quotation: In this system, variable units of home currency equivalent to a

fixed unit of foreign currency are quoted.
For example: US $ 1= Rs. 62.87

 Indirect Quotation: In this system, variable units of foreign currency as

equivalent to a fixed unit of home currency are quoted.
For example: US $1.59= Rs. 100

Before 1993, banks were required to quote all the rates on indirect basis as foreign
currency equivalent to RS. 100 but after 1993 banks are quoting rates on direct basis
only.

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15.4 Exchange Rate Regime

The EXCHANGE RATE regime is a method through which a country manages its
currency in respect to foreign currencies and the foreign exchange market.

 Fixed Exchange Rate

A fixed exchange rate is a type of exchange rate regime in which a currency's value
is matched to the value of another single currency or any another measure of value,
such as gold. A fixed exchange rate is also known as pegged exchange rate. A
currency that uses a fixed exchange rate is known as a fixed currency. The opposite
of a fixed exchange rate is a floating exchange rate.

 Floating Exchange Rate

A Floating EXCHANGE RATE is a type of EXCHANGE RATE regime wherein a
currency's value is allowed to fluctuate according to the FOREIGN
EXCHANGE market. A currency that uses a floating EXCHANGE RATE is known
as a floating currency. A Floating Exchange Rate or a flexible exchange rate and is
opposite to the fixed exchange rate.

 Linked Exchange Rate

A linked exchange rate system is used to equlise the exchange rate of a currency to
another. Linked Exchange Rate system is implemented in Hong Kong to stabilise the
exchange rate between the Hong Kong dollar (HKD) and the United States dollar
(USD).

 Forward Exchange Contracts

A Forward Exchange Contract is a contract between two parties (the Bank and the
customer). One party contract to sell and the other party contracts to buy, one
currency for another, at an agreed future date, at a rate of exchange which is fixed at
the time the contract is entered into.

Benefits of Forward Exchange Contract

 Contracts can be arranged to either buy or sell a foreign currency against your
domestic currency, or against another foreign currency.
 Available in all major currencies.

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  Available for any purpose such as trade, investment or other current
commitments.
 Forward exchange contracts must be completed by the customer. A customer
requiring more flexibility may wish to consider Foreign Currency Options.

15.5 Foreign Currency Options

Foreign Currency Options is a hedging tool that gives the owner the right to buy or sell
the indicated amount of foreign currency at a specified price before a specific date. Like
forward contracts, foreign currency options also eliminate the spot market risk for future
transactions. A currency option is no different from a STOCK OPTION except that the
underlying asset is FOREIGN EXCHANGE. The basic premises remain the same: the
buyer of option has the right but no obligation to enter into a contract with the seller.
Therefore the buyer of a currency option has the right, to his advantage, to enter into
the specified contract.

15.6 Flexible Forwards

Flexible Forward is a part of foreign exchange that has been developed as an

alternative to forward exchange contracts and currency options. The agreement for
flexible forwards is always singed between two parties (the ‘buyer’ of the flexible forward
and the 'seller' of the flexible forward) to exchange a specified amount (the ‘face value’)
of one currency for another currency at a foreign exchange rate that is determined in
accordance with the mechanisms set out in the agreement at an agreed time and an
agreed date (the ‘expiry time’ on the ‘expiry date’). The exchange then takes place
approximately two clear business days later on the ‘delivery date’).

15.7 Currency Swap

A currency swap which is also known as cross currency swap is a FOREIGN

EXCHANGE agreement between two countries to exchange a given amount of one
currency for another and, after a specified period of time, to give back the original
amounts swapped.

15.8 Foreign Exchange Markets

The FOREIGN EXCHANGEmarkets are usually highly liquid as the world's main
international banks provide a market around-the-clock.

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16.0 Export Risk Mitigation
Export risk mitigations are the various strategies that can be adopted by an exporter to
avoid the risks associated with the export of goods.
 Direct Credit: Export Credit Agencies support exports through the provision of
direct credits to either the importer or the exporter.

o Importer: a buyer credit is provided to the importer to purchase goods.

o Exporter: makes a deferred payment sale; insurance is used to protect the

seller or bank.

 Guarantees

o Bid bond (tender guarantee): protects against exporter’s unrealistic bid or

failure to execute the contract after winning the bid.

o Performance bond: guarantees exporter’s performance after a contract is

signed.

o Advance payment guarantee (letter of indemnity): in the case where an

importer advances funds, guarantees a refund if exporter does not
perform.

o Standby letter of credit: issuing bank promises to pay exporter on behalf of

importer.

 Insurance
o Transportation insurance: Covers goods during transport; degree of
coverage varies.
o Credit Insurance: Protects against buyer insolvency or protracted defaults
and/or political risks.
o Seller non-compliance (credit insurance): Covers advance payment risk.
o FOREIGN EXCHANGE risk insurance: Provides a hedge against foreign
exchange risk.

 Hedging
Instruments used to Hedge Price Risk
o Stabilization programs and funds.
o Timing of purchase/sale.
o Fixed price long-term contracts. / Forward contracts /Swaps

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 16. INTERNATIONAL TRADE BODIES

United Nations Office at Geneva http://www.unog.ch

Regional Economic Commissions

Economic Commission for Africa - Addis Ababa,

http://www.un.org/Depts/eca
Ethiopia (ECA)

Economic Commission for Europe - Geneva,

http://www.unece.org
Switzerland ( ECE )

Economic Commission for Latin America and the

http://www.eclac.org
Caribbean - Santiago, Chile ( ECLAC )

Economic and Social Commission for Asia and the

http://www.unescap.org
Pacific - Bangkok, Thailand ( ESCAP )

Economic and Social Commission for Western Asia -

http://www.escwa.org.lb
Amman, Jordan ( ESCWA )

Web site on International Prices of commodity

Metal Prices and News http://www.metalprices.com

Commodity trader's daily magazine and learning

http://www.commodityworld.com
resource centre

TFC Free Commodity Charts and market quotes http://futures.tradingcharts.com

Other Sites

The Federation of International Trade Associations http://www.fita.org

International Trade Centre UNCTAD/WTO ( ITC ) http://www.intracen.org

International Fund for Agricultural Development ( IFAD ) http://www.ifad.org/

Page 45
IPAnet - Investment Promotion Agencies Network
http://www.ipanet.net
( MIGA/World Bank )

Organisation for Economic Cooperation and Development

http://www.oecd.org/
( OECD )

United Nations International Computing Centre ( UNICC ) http://www.unicc.org/

United Nations Headquarters ( UN ) http://www.un.org

United Nations Department of Economic and Social Affairs http://www.un.org/esa

United Nations Industrial Development Organization

http://www.unido.org/
( UNIDO )

United Nations Development Programme ( UNDP ), New

http://www.undp.org
York

United Nation Conference on Trade & Development

http://www.unctad.org
(UNCTAD)

WIPO Programme for Electronic Commerce http://ecommerce.wipo.int

World Trade Organization ( WTO ) http://www.wto.org/

World Bank http://www.worldbank.org

World Intellectual Property Organization ( WIPO ) http://www.wipo.int

WIPO Arbitration and Mediation Center http://arbiter.wipo.int

Page 46
 17. LIST OF EXPORT PROMOTION COUNCILS/COMMODITY BOARDS/EXPORT
DEVELOPMENT AUTHORITIES

S Name of Registered Office/Head Regional Office Details of products falling

N Export Office with their jurisdiction
o. Promotion
Councils/
Commodity
Boards

EXPORT PROMOTION COUNCILS

1. Apparel Registered Office Regional Offices: Readymade garments.

Export A-223, Okhla Industrial Mumbai
Promotion Area 12th Floor, Bajaj
Council Phase-I, Okhla Bhavan,
New Delhi-110 020 Nariman Point,
Tel : 011-26372721 Mumbai-110021
Fax : 011-26814251 Tel : 022-22043178
E-mail: E-mail:
adtdcdel@eth.net atdcmumbai@yahoo.co.
in
Head Office
Apparel House, Chennai
Institutional Area 116B (Old No.70A)
Sector-44, Gurgaon Vellalar St. Mogappair
Haryana-122 003 West Chennai-600 037
Tel : 0124-2708000-03 Tel : 044-26254216
Fax : 0124-2708004-05 Fax : 044-26243543
E-mail: E-mail:
administrator@aepcindi chennaiaepc@yahoo.co
a.com m
2. Basic Jhansi Castle KOLKATA Kankaria - Dyes,
Chemicals, 4th Floor Estate Dye-Intermediates,
7 Cooperage Road 9th Floor Coal Tar Chemicals and
Pharmaceuti Mumbai-400 039 6, Little Russell Street Alcohol
cals & Tel: 022- Kolkata-700 071 - Basic Inorganic and
Cosmetics 2021288/2021330 Tel: 91 33 22805791 Organic Chemicals including
EPC Fax: 022-2026684 Fax; 91 11 26169891 Ago Chemicals, Oil Field
Email: Bangalore Chemicals
chemexcil@vsnl.com No.19/2, GOKUL, Ist - Cosmetics and Toiletries,
Floor, Essential Oils & Perfumery
6 Main Road, Compounds,
Ghandhinagar, - Agarbattis.
Bangalore-560 009 - Castor Oil & it's derivatives
Tel: 080-22269037
Fax 9180 22260446

Page 47
3. Carpet Working Office, Regional Office: Handmade/ Handknotted
Export Niryat Bhavan, Woollen Carpets, Rugs,
Promotion 3rd Floor, Rao Tula Kaleen Bhawan, 1st Druggets, Durries,
Council Ram Marg Floor Handmade tufted Carpets,
Opp. Army R R Hospital Maryadpatti Handmade Silk Carpets,
New Delhi-110 057 Bhadohi-221401 Handmade Staple/Synthetic
Tel : Distt. Bhadohi (U.P.) Carpets, Kelem,
26153466/26153467 Tel : 05414-25975 Schumacks, Namdhas and
Fax : 26153465 Fax : 05414-24903 other Floor Covernings.
E-mail: cepc@vsnl.com; Email:
cepc@airtelbroadband.i cepc_bhadohi@sify.com
n
4. Cashew P B No.1709, Chittoor - Cashew Kernels
Export Road - Cashewnut Shell Liquid
Promotion Ernakulam South - Kardanol
Council of Cochin-682 016
India Kerala
Tel : 0484-
2376459/2376080
Fax : 0484-2377973
E-mail:
cepc@cashewindia.org
Website
:www.cashewindia.org
5. CAPEXIL Vanijya Bhavan Southern Region 1. Animal By-products
International Trade 2. Automobile Tyres & Tube
Facilitation Centre Rasheed Mansion 3. Books, Publishing &
3rd Floor 408, Anna Salai Printing
1/1, Wood Street Chennai-600 006 4. Bulk Minerals & Ores
Kolkata-700016 Tel : 044-28292310, 5. Cement, Clinkes &
Tel : 033- 2829-4713 Asbestos Cement products
22890524/0525 Fax : 044-28295386 6. Ceramics & Refractories
Fax : 033-22891724 E-mail: 7. Glass & Glasswares
E-mail: capexils@dataone.in 8. Granites, Natural Stones
info@capexil.com & Explosives.
Website : Western Region 9. Graphite Electrodes &
www.capexil.com Explosives
Commerce Centre 10. Misc. Products such as :
Block No.D-17, Tardeo - Gambier
Road Extracts/Myrobalam
Mumbai-400 034 Extracts/ Cutch Extracts/
Tel : 022-23523410 Other dyeing & tanning
Fax : 022-23516665 extracts
E-mail: - Fire works
capexilm@vsnl.com - Safety Matches
- Activated Carbon
- Cocoanut shell Charcoal
- Superphosphates Urea

Page 48
 - Other Chemical Fertilizers
- Hard Aggregates for Floor
11. Ossein, Glue & Gelatine
12. Paints & Allied Products
13. Paper, Board & Paper
Products
14. Plywood & Allied
Products
15. Processed Minerals
16. Rubber Manufactured
Products

6. The Cotton Engineering Centre, 5th Suit No.36, 3rd Floor - Cotton Yarn & Sewing
Textiles Floor Indra Palace, H-Block Thread
Export 9 Mathew Road, Behind Connaught Place - Cotton Fabrics
Promotion Opera House New Delhi-110 001 (Grey/Bleached &
Council Mumbai-400 004 Tel : 011-23316168 Processed Fabrics)
Tel : 022-23632910, 11, Fax : 011-23719104 including Yarn Dyed
12 Fabrics:
Fax : 022-23632914 Duck/Canvas, Sheetings,
E-mail: Poplin, Shirting/Suitings,
info@texprocil.org Denims/Drills,
Website : Twills/Sateens,
www.texprocil.org Sarees/Dhotis/Terry
Fabrics, Furnishings,
Voils/Mulls/Muslin, Knit
Fabrics
- Cotton Made-ups – Bed
Linens/Home Furnishings,
Terry Towels/Toweling,
Bags/Sacks,
Curtains/Drapes, Blankets,
Table/Toilet/Kitchen,
Linens/Napkins,
Handkerchiefs/Dusters,
Carpets/Mats/Tarpaulins/Te
nts, Tapes/Narrow Fabrics,
Labels, Shawls/Scarves,
Rope &* Twine, Drop Cloth,
Mosquito Netts/Netting,
Embroidered
Fabrics/Sarees, Dress
Materials,
Chaddar/Odhanis, Khangas,
Threads/Packing Threads,
Others
- Raw Cotton

Page 49
7. Council for CMDA Tower-II, 3rd Southern Regional Leather & Leather products
Leather Floor Office
Exports Gandhi Irwin Bridge
Road CMDA Tower-II, 3rd
Egmore Floor
Chennai-600 008 Gandhi Irwin Bridge
Tel: 044-28594367-71 Road
Fax : 044-28594363-64 Egmore
E-mail: Chennai-600 008
cle@cleindia.com Tel : 044-28594367-71
Website: Fax : 044-285943263-64
www.leatherindia.org E-mail:
cle@cleindia.com

8. Engineering Vanijya Bhavan(1st Chennai 1. Machineries and

Export Floor) equipments
Promotion International Trade Greams Dugar (3rd 2. Motor Vehicles
Council Facilitation Centre Floor) 3. Automobile Components
1/1, Wood Street 149, Greams Road 4. Bicycles, Bicycle
Kolkata-700 016 Chennai-600 006 Components and
Tel : 033-22890651/52 Tel : 044- Accessories
Fax : 033-22890654 28295501/28295502 5. Two Wheelers and Three
E-mail: eepcho@eth.net Fax : 044-28290495 Wheelers
Website: E-mail: 6. Internal Combustion
www.eepcindia.org eepcchennai@airtelmail. Engines, Compressors
in 7. Pumps – all types
8. Electric and Home
Appliances
Hyderabad 9. Hand and Machine Tools
10. Medical, Surgical and
Soham Mansion (1st Other Instruments
Floor) 11. Prime Iron & Steel 12.
No.5-4-187/3 & 4/4, M G Non-ferrous Metals and
Road Products Thereof
Secunderabad-500 003 13. Railway Rolling Stock
Tel : 040-27536704 and Components
Fax : 040-27536705 14. Builders Hardware
E-mail: 15. Project Exports.
eepchyd@eth.net 16. Mica & other Mineral
based products.
17. Miscellaneous
Manufacturers Engineering
Products not specified
elsewhere.

Page 50
9. Electronics PHD House, 3rd Floor - - Electronics Hardware:
& Computer Ramakrishna Dalmia • Consumer electronics
Software Wing • Telecom equipments and
EPC Opp. Asiad Village services
New Delhi-110 016 • Electronics instruments
Tel: 26510632, (which includes – industrial
26964463 instruments, office
Fax: 26853412 equipments, medical
Email : esc@vsnl.com equipments, laboratory
Website: equipments, strategic
www.escindia.in electronic equipments)
• Electronics components
• Computer hardware
• Computer
software/services

10 Export EPCH House, Pocket 6 -Regional Office- Handicraft Items made of:
. Promotion &7 Bangalore - Metal Ware
Council for Sector-C, LSC, Vasant Export Promotion - Wood Ware
Handicrafts Kunj Council for Handicrafts - Handprinted textiles and
New Delhi-110 070 302, 3rd Floor, CEARS scarves embroidered and
Tel : 011-26134256-57- Plaza, No. 138, crocheted goods shawls and
58 Residency Road, Art wares
Fax : 011-26135518-19 Bangalore - Artistic handmade
E-mail: epch@vsnl.com TEL: 91-80-22107367 jewellery/ Imitation jewellery
Website: Tele fax:91-80- - Lace & Embroidery crafted
www.epch.com 22107369 stones
- Jute and Papier machine
Regional Office-
Chennai.
Export Promotion
Council for Handicrafts
G-1, Ground Floor “SRM
Muthu Enclave” No. 13,
Harrington Road, 11th
Avenue, (Opp.
Pachaiyappas College
Wst), Shennoy Nagar,
Chennai-600030
Tel : 91-44-26680717
Fax : 91-44-26680718
E-mail:
epchsn@satyam.net.in

Page 51
11 Export 705, Bhikaji Cama Chennai 100% Export Oriented Units
. Promotion Bhavan MEPZ-Special and Special Economic Zone
Council for Bhikaji Cama Place Economic Zone Units
EOUs & New Delhi-110 066 Ground Floor,
SEZ Units Tel : 011- Administrative Office
26165805/26167042 Building, Tambaram
Fax : 011-26165538 Chennai-600 045
E-mail: epces@vsnl.net Tel & Fax : 044-
22623456
Email:
epceschen@vsnl.net

Visakhapatnam
Visakhapatnam Special
Economic Zone
Administrative Building
Duvvada
Visakhapatnam-530 046
Tel: 0891-2541945
Emal:
rdvsp.epces@yahoo.com

12 Federation Niryat Bhawan Southern Region -Status Holders

. of Indian Rao Tula Ram Marg
Export Opp. Army Hospital Spencer Plaza, Unit - Services other than
Organisatio Research & Referral No.706 Computer Software/
ns (FIEO) New Delhi-110 057 7th Floor, 769, Anna Services, and those specific
Tel: 011- Salai services as listed in Sl.
46042222/26150101-04 Chennai-600 002 No.22 of Appendix 2 of
Fax: 011-26148194 Tel: 044- Handbook of Procedures
Email: 28497766/7755/3333 Volume-I.
fieo@nda.vsnl.net.in\ Fax: 044-28496666
Email: - In respect of exporters
FIEOsr@giasmd01.vsnl. having their Head Office/
net.in Registered Office in the
State of Orissa, RCMC may
be obtained from FIEO
Andhra Pradesh office in Bhubaneswar.
Chapter
However, exporters of Minor
"Shakar Bhavan" Forest produce may also
5-10-174, Fateh Maidan obtain RCMC from
Road SHEFEXIL
Hyderabad 500 004
Phone: +91-40-
23210380
Fax: +91-40-23210381
fieoandhra@yahoo.co
m

Page 52
13 The Gem & Diamond Plaza, 5th - Polished & Processed
. Jewellery Floor Chennai Pearls (real or culture)
Export 391-A, Dr Dadasaheb - Cut & Polished Diamonds
Promotion Bhadkamkar Marg Ankur Plaza, 3rd Floor, - Cut & Polished Coloured
Council Mumbai-400 004 52, G N Chetty Road, T Gemstones
Tel : 022- Nagar - Jewellery containing gold,
23821801/1806/238069 Chennai-600 017 silver, platinum, or palladium
16 Tel : 044-28155180 and studded with diamonds,
Fax : 022-23808752 Fax : 044-28154526 coloured gemstones, real or
E-mail: E-mail: cultured pearls or synthetic/
ho@giepcindia.com gjepcsr@vsnl.com, imitation stones
Website: www.gjepc.org Chennai@gjepcindia.co - Cut and Polished Synthetic
m Stones
Exhibition Cell - Costume/Fashion
G-6, Radhe Vallabh Jewellery
CHS (Modi Chambers) - Silver Filligree Jewellery &
French Bridge Corner, Silver Filligree
Opp. Opera House - Rough Diamonds
Mumbai-400 004
Tel : 022-
23894957/20532896/23
802788
Fax : 022-23804958
iijs@gjepcindia.com;
exhibition@gjepcindia.c
om
Website : www.iijs.org,
www.gjepc.org.intl
14 Handloom 34,Cathedral Garden 1004, 10th Floor, All Handloom Products like:
. Export Road Padma Tower-1 Fabrics, Home Furnishings,
Promotion Nungambakkam 5, Rajendra Place Carpets, Floor coverings
Council Chennai New Delhi-110 008 etc.
Tel: 044- Tel: 011-5826965
28278879/28276043 Tel: 25826965
Fax: 044-28271761 Fax 25826922
Email: hepcindia.com

15 Indian 78-79, Bajaj Bhavan - Oil seeds and oils, other

. Oilseeds & Nariman Point than de-oiled cake, rice bran
Produce Mumbai-400 021 oil, soya oil, soya de-oiled
Export Tel:022- cake and the products other
Association 22023225/22029295 than those dealt by Shellac
EPC Fax:022-22029236 & Forest Product Export
(IOPEA) Email: info@iopea.org Promotion Council.
Website: www.iopea.org

Page 53
16 The Indian 62, Mittal Chambers - Natural silks and silk Blends
. Silk Export Nariman Point and their products including
Promotion Mumbai-200 021 readymade Garments and
Council Tel : 022- Carpets.
22049113/22025866/22
027662
Fax : 022-22874606
E-mail:
isepc@bom2.vsnl.net.in
Website :
www.silkepc.org
17 Jute 3A, Park Plaza Hyderabad Traditional Jute Products :
. Manufacture 71 Park Street Hessian, Sacking, Carpet
rs Kolkata-700 016 Chenetha Bhawan, Backing Cloth, Yarn
Developmen Tel : 033- Shop No.4
t Council 22172107/22493825/22 Nampally Speciality and newly
263438 Hyderabad-500 001 emerging products : Food
Fax : 033-22172456 Tel : 040-24656733 grade jute cloth/bags, jute
E-mail: jmdc@jute.com; Fax : 040-24614918 geo-textiles
jmdcindia@vsnl.com E-mail:
Website: hyd2_jmdchyd@sanch Life Style Jute Products :
www.jmdcindia.com; arnet.in Floor coverings (incl.
www.jute.com carpets, mats and Mattings.
Shopping & carry bags incl.
fancy bags. Jute and jute
blended decorative fabrics.
Promotional gift items
including handicrafts
stationery items. Wall
hangings

18 Pharmaceuti 101, Aditya Trade Mumbai - Bulk Drugs and its

. cals Export Centre 248-A, T V Industrial intermediates,
Promotion Ameerpet Estate - Formulations
Council Hyderabad-500 038 Unit No.106, 1st Floor - Herbal
Tel : 040-23735462/66 S K Ahire Marg, Worli - Ayurvedic,
Fax : 040-23735464 Mumbai-400 030 - Unani
E-mail: Tel : 022-24938750/51 - Homeopathic medicines
info@pharmexcil.com Fax : 022-24964912 - Biotech & biological
Website: E-mail: products
www.pharmexcil.com romumbai@pharmexcil. - Diagnostics
com - Surgical
- Nutraceuticals & pharma
industry related services
- Collaborative research
- Contract manufacturing
- Clinical trials and
consultants etc

Page 54
 - Pharma related services.
19 The Plastics Crystal Tower, Crystal Regional Office:-New All plastics products
. Export Cooperative Housing Delhi covering plastic raw
Promotion Society Limited, 703, Hemkunt materials: intermediate
Council Gundivali Road Chambers- products like plastic
No.3, Off M V Road, 89, Nehru Place,
Andheri (E) New Delhi-110 019 Films, sheets etc .plastic
Mumbai-400069 Tel: 91-11 packaging materials
Tel: 022-26833951 26478817/2678819 including Plastic woven
Fax: 022- Fax:91-11- 26478821 sacks/fabrics/bags &
26833953/26834057 Email:plexnr@del3.vsnl. Flexible Intermediate Bulk
Email: plexsr@md.3vsn. net.in containers (FIBC’s) Plastic
Tarpaulins, plastic
Regional Office-Chennai consumer items, PVC
Leather Cloth/Foam leather,
Rasheed Mension, 3rd floor coverings (incl.
Floor, 408, Anna Salai Linoleums), Moulded/soft
Chennai-600006 luggage,FRP/GRP products
Tel:91-44- PVC Rigid/Flexible,
2829620/28291530
Fax:91-44-28291518 Pipe fittings, Toys Dolls and
Email:plexr Game, Plastic Electrical
@md3.vsnl.net.in Accessories, Laminates,
Fishnets. Fishing Lines,
Regional Offfice- Cordage/Ropes/Twines/Yar
Kolkata n/Bristles, PVC fabricated
goods, PVC Sheeting/Film,
Vanijay Bhavan, :ITFC” Intraocular Lenses,
6th Floor 1/1, Wood Spactacle Frames, Hard
Street-Kolkatta-700016 Resilene Lenses, goggles,
Tel: 91-33- Poly-Lines Jute goods,
22834497/22834498 Disposable Syringes,
Fax:91-33-22834289 blood/urine bags I.V. sets,
Email:plexcoer@giascl Dental products and other
01.vsnl.net.in medical disposables, Cine
X-Ray Films, Plastic
bangles/Imitation Jewellery
and all products made
predominantly of plastic
materials by processing raw
materials through
injecton/blow moulding.
Extrusion, calendaring,
fabrications and other
processes: writing
instruments and human hair
and products thereof

Page 55
20 Powerloom GC-2, Ground Floor, No.277/1, Sellabana Powerloom products
. Developmen Gundecha Onclave Street
t & Export Kherani Road, Andheri Kumalan Kuttai
Promotion (E) Erode-638 011
Council Mumbai-400 072 Tamil Nadu
Tel : 022-67254510,
67254497/98
Fax : 022-67254526
E-mail:
pdexcilmumbai@yahoo.
com
Website:
www.pdexcil.org
21 Project H-118, Himalaya House, - Project Exports:
. Exports 11th Floor - Civil Construction
Promotion 23, Kasturba Gandhi (Structures/ Infrastructure)
Council of Marg - Turnkey including
India New Delhi-110 001 Engineering, Procurement &
Tel : 011- Construction (from concept
23722425/23350367 to commissioning) and
Fax : 011-23312936 Essentially includes civil
E-mail: work/construction and all
info@projectexports.co supplies specific to these
m Turnkey Projects
Website:
www.projectexports.com - Process and Engineering
Consultancy Services
- Project Construction Items
(excluding Steel and
Cement)
- Construction Engineering
Products (fitting and fixtures;
materials; construction
chemicals & allied products)

- Construction Equipments
& Accessories
- Other Project Goods
22 Services Services Export - 1. Health Care Services
. Export Promotion Council, including services by
Promotion #1206, Chiranjiv Tower, nurses, physiotherapist and
Council 43, Nehru Place, paramedical personnel
New Delhi-110019. 2. Educational Services
Phone:011- 3. Entertainment Services
26453668,26453666 including audio-visual
FAX:011-26453667 services
Website:- 4. Consultancy Services

Page 56
 www.servicesepc.com 5. Architectural Services
and related services
6. Distribution Services
7. Accounting/ Auditing and
Book Keeping Services
8. Environment Services
9. Maritime Transport
Services
10. Advertising Services
11. Marketing Research and
Public Opinion Polling
Services/ Management
Services
12. Printing and Publishing
13. Legal Services
14. Hotel and tourism
related services.
23 The Sports 2nd Floor, 1E/6, Swami Sports Goods Export Sports Goods and Toys
. Goods Ram Tirth Nagar Promotion council
Export Jhandewalan Extension 201, Shakti Nagar,
Promotion New Delhi-110 055 Jalandhar-144 001
Council Tel : 011-23525695, Tel: +91-181-2403734
23516183 Telefax: +91-181-
Fax : 011-23632147 2403734
E-mail: E.Mail:
sgepc@vsnl.com rosgepc@jla.vsnl.net.in
Website :
www.sportsgoodsindia.o
rg
24 Shellac & Vanijya Bhawan - - Minor Forest Produce and
. Forest International Trade their value added products.
Products Facilitation Centre
Export 1/1, Wood Street, 2nd - - In respect of exporters
Promotion Floor having their Head
Council Kolkata-700 016 Office/Registered Office in
Tel: 033- the North East States,
22834417/22834698/46 RCMC for all products may
97 be btained from Shellac &
Fax: 033-22834699 Forest Products Export
Email: sepc@vsnl.net Promotion Council.

In respect of exporters
having their head
office/Registered office in
the state of Orissa,
exporters of MFP from the
state can obtain RCMC from
Shefexil.

Page 57
25 Synthetic & Resham Bhavan New Delhi Synthetic & Rayon (Man-
. Rayon 78, Veer Nariman Road Surya Kiran Building Made Fibre) Textiles and
Textiles Churchgate Flat #602, 6th Floor blends such as Fibre, Yarn,
Export Mumbai-400 020 19, Kasturba Gandhi Fabrics and Made-ups
Promotion Tel : 022- Marg covered under ITC (HS)
Council 22048797/22048690/22 (Connaught Place) Classification – Chapters 54
040168/ New Delhi-110 001 to 63 (Excluding Garments)
22810067/22810068 Tel : 011-23733090
Fax : 022- Fax: 011-23733091
22048358/22810091/22 Email : delhi@srtepc.org
810076
E-mail:
srtepc@vsnl.com;
srtepc@srtepc.org
Website:
www.synthetictextiles.or
g

26 Wool & 906, New Delhi House Ludhiana All types of Wool & Wool
. Woollens 27, Barakhamba Road Blended Products like
Export New Delhi-110 001 704/3, Gurdev Nagar Woollen & Acrylic Knitwear,
Promotion Tel : 011- Pakhowal Road wool & wool blended
Council 23315512/23315205 Ludhiana-141001 Shawls, Stoles, Scarves,
Fax : 011-23730182 Tel : 0161-2430842 Mufflers, Rumals, Shoddy
E-mail: Fax : 0161-2405169 Blankets, Fabr4ics, Wool
wwepc@bol.net.in; E-mail: Tops, Woollen Yarn, Wool
headoffice_wwepc@yah wwepc@hotmail.com; Hair Belting, Felt, Machine
oo.co.in wwepcindia@yahoo.co Made Carpets, other Made-
Website: m ups etc.
www.wwepcindia.com
Mumbai
Churchgate Chambers
5, New Marine Lines
Mumbai-400 020
Tel : 022-22624680
Fax : 022-56318561
E-mail:
wwepcmumbai@yahoo.
co.in; wwepc@vsnl.com

27 Wool Churchgate Chamber, Guru Kripa Building, 1st Shoddy & Woollen yarn and

Page 58
. Industry 7th Floor Floor Fabrics, Blankets, Wool
Export 5, New Marine Lines Chowk Katra Parja Tops, Wool Hair Belting,
Promotion Mumbai-400 020 Near Shastri Market Felt and Machine made
Council Tel : 022-22624372 Amritsar-143 006 carpets, Woven Shawls,
Fax : 022-22624675 Email: Scarves and Stoles.
E-mail: pankaj@wooltexpro.com
mail@wooltexpro.com Mobile :
Website:
www.wooltexpro.com

09888015536
28 Telecom Gate NO.5, Khursid
Equipments Lal Bhavan Janpath,
& Service New Delhi – 110001
Exports Tel: 011-23314811
Promotion Fax: 011-23314611
Council Email:
tepc@telecomepc.in

COMMODITY BOARDs

29 Coffee Post Box No.5366 - Coffee

. Board No.1, Dr Ambedkar
Veedhi
Bangalore-560 001
Tel : 080-22266991-94
Fax : 080-22255557
E-mail:
cofboard@vsnl.com
Website:
www.indiacoffee.org

30 Coir Board Coir House Rajahmundry Coir and Coir Products

M G Road
Kochi-682 016 Swaraj Nagar
Tel : 0484-2351807 A C Gardens
Fax : 0484-2354397 Rajahmundry-533 101
E-mail: Tel: 0891-2755191
coir@md2.vsnl.net.in
Website:
www.coirboard.gov.in

Page 59
31 The Rubber Shastri Road - Rubber and Rubber
. Board P B No.1122 Products.
Kottayam-686 002
Tel : 0481-
2353790,2571522,2353
311
Fax : 0481-
2353790,2353121

32 Spices Sugandha Bhavan Guntur Cardamom, Pepper, Chilly,

. Board N H By-Pass, P B Ginger, Turmeric,
No.2277 House No.5-19-12, 4th Coriander, Cumin, Fennel,
Palarivattom P.O. Line Fenugreek, Celery, Aniseed,
Cochin-682 025 Lakshmipuram Bishopsweed, Caraway, Dill,
Tel : 0484-2333610-16 Guntur-522 007 Cinnamon, Cassia, Garlic,
Fax : 0484- Tel : 0863-2354782 Curry Leaf, Kokkam, Mint,
2331429/2334429 Mustard, Parsley,
E-mail: Secunderabad Pomegranate seed, Saffron,
spicesboard@vsnl.com; Vanilla, Tejpat, Pepper long,
mail@indianspices.com 14-A-Old Vasavi Nagar Star Anise, Sweet flag,
Website: Karkhana Greater Galanga, Horse-
www.indianspices.com Secunderbad-500 015 raddish, Caper, Clove,
Tel : 040- Asafoetida, Cambodge,
27744835/27740436 Hyssop, Juniper berry, Bay
leaf, Lovage, Marjoram,
Nutmeg, Mace, Basil, Poppy
Chennai Seed, All-Spice, Rosemary,
Sage, Savory, Thyme,
No.11/3008, 1st Floor Oregano, Tarragon,
Second Street, 13th Tamarind.
Main Road
Z Block, Shanthi Colony In any form including curry
Anna Nagar powders, spice oil,
Chennai-600 040 oleoresins and other
Tel : 044-26201341 mixtures where spice
Fax: 044-26264314 content is predominant.
33 Tea Board 14, Biplabi Trilokya College Road Tea and its products
. Maharaj Sarani Kottayam-686001
Kolkata-700 001 Kerala
Tel: 033- TelL0481)56-7391
22215717/22255134 Fax 0481-567391
Fax: 033-22215715
Email :
tboardcp@cal3.vsnl.net.

Page 60
 in
34 Tobacco P B No.322, Grand Trunk - Unmanufactured Tobacco
Road
. Board - Flue cured Virginia
P B No.322, Grand Trunk
Road - Light Soil Burley
Guntur-522 004, AP - Sun cured country
Tel : 0863-2358399/2358068 - Chewing Tobacco
Fax : 0863-2354232
- Bidi Tobacco, - Cigar
E-mail:
info@indiantobacco.com Tobacco,- HDBRG
WWW. Manufactured Tobacco
indiantobacco.com products
- Cigarettes, - Cigars
- Cigarillos,- Beedis
- Cut tobacco
- Chewing tobacco

DEVELOPMENT AUTHORITIES
35 Agricultural 3rd Floor, NCUI Building Hyderabad 1. Fruits, Vegetable and their
products
. and 3, Siri Institutional Area
2. Meat and meat products
Processed August Kranti Marg 8th Floor, Chandra 3. Poultry and poultry products
Food (Opp. Asiad Village) Vihar Building 4. Dairy products
Products New Delhi-110 016 M J Road 5. Confectionary, biscuits and
bakery products
Export Tel : 011- Hyderabad-500 001
6. Honey, jiggery and sugar
Developmen 26513204/23514052/23 Tel : 040-24745940 products
t Authority 534191 Fax : 040-24745947 7. Cocoa and its products,
Fax : 011-26534870 E-mail: chocolates of all kinds
8. Alcoholic and non-alcoholic
E-mail: hyd_apedahyd@sanch
beverages
headq@apeda.com arnet.in 9. Cereals and cereals
10. Groundnuts, peanuts and
Bangalore walnut
11. Pickles, chutneys and papads
12/1/1, Palace Cross
12. Guar Gum
Road 13. Floriculture and floriculture
Bangalore-560 020 products
Tel : 080- 14. Herbal and medicinal plants
23343425/23368272
Fax : 080-23364560
E-mail:
apedablr@vsnl.net
36 Marine P B No.4272, 48-7-9 Rama Talkies Road, Marine Products included all
1st Floor, Srinagar,
. Products Panampilly Nagar P O varieties of fishery products
Visakhapatnam-530 016, AP
Export Panampilly Avenue Tel: 91 891 2701134 known commercially as
Developmen Kochi-682 036 Fax: 91 891 2552077 shrimp, prawn, lobster, crab,
t Authority Kerala Email: mpeda@dataone.in fish, shell-fish, other aquatic
Tel: 0484- animals or plants or part
The Marine Products Export
2311979/803/901/854, Development Authority. thereof.
2314468, 2315065, Ist Floor, 33-25-35, Bellapu
2313415, 2315309 Sobhanadri Street,

Page 61
 Fax : 0484- Surya Rao Pet
Vijayawada – 520 002,
2313361/4467,
Andhra Pradesh
2312812, 2312036 Tel: 91 866 2433050
Email : Fax: 91 866 2432122
mpeda@mpeda.nic.in; Email:
vjwvjwmpeda@sancharnet.i
mpeda@vsnl.com;
n
mpeda@asianetonline.n
et
Website: www/mpeda
37 Coconut PB No 1021 All Coconut products other
Developmen Kerala Bhavan than thos made from
t Authority SRHVS Road coconut husk and fiber
Kochi – 682001
Tel: 0484-2375216
Fax: 0484-2377902

ITC HS CODE LIST

(Chapter 1 - 5 ) - Section I-Live Animals; Animal Products

 Chapter 1: Live Animals

 Chapter 2: Meat and Edible Meat Offal

 Chapter 3: Fish and Crustaceans, Molluscs and other Aquatic Invertebrates

 Chapter 4: Birds'' Eggs; Natural Honey; Edible Products of Animal Origin, not elsewhere specified or included

 Chapter 5: Products of Animal Origin, not elsewhere specified or included

(Chapter 6-14 ) - Section II-Vegetable Products

 Chapter 6: Live trees and other Plants; Bulb, Roots and the like; Cut flowers and Ornamental Foliage

 Chapter 7: Edible Vegetables and Certain Roots and Tubers

 Chapter 8: Edible Fruit and Nuts; Peel of Citrus Fruit or Melons

 Chapter 9: Coffee, Tea, Mate and Spices

 Chapter 10: Cereals

 Chapter 11: Products of the Milling Industry; Malt; Starches; Inulin; Wheat Gluten

 Chapter 12: Oil Seeds and Oleaginous Fruits; Miscellaneous Grains, Seeds and Fruit; Industrial or Medicinal Plant

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 Straw and Fodder

 Chapter 13:Lac; Gums, Resins and other Vegetable Saps and Extracts

 Chapter 14: Vegetable Plaiting Materials; Vegetable Products not elsewhere specified or included

(Chapter 15 ) - Section III-Animal or Vegetable Fats and Oils and their cleavage Products; Prepared
Edible fats; animal or Vegetable waxes
 Chapter 15: Animal or Vegetable Fats and Oils and their Cleavage Products; Prepared Edible Fats; Animal or Veg
Waxes

(Chapter 16 -24 ) - Section IV-Prepared Foodstuffs; Beverages, Spirits and Vinegar; Tobacco and
Manufactured Tabacco substitutes
 Chapter 16: Preparations of Meat, of Fish or of Crustaceans, Molluscs or Other Aquatic Invertebrates

 Chapter 17: Sugars and Sugar Confectionery

 Chapter 18: Cocoa and Cocoa Preparations

 Chapter 19: Preparations of Cereals, Flour, Starch or Milk; Pastry Cooks'' Products

 Chapter 20: Preparations of Vegetables, Fruit, Nuts or Other Parts of Plants

 Chapter 21: Miscellaneous Edible Preparations

 Chapter 22: Beverages, Spirits and Vinegar

 Chapter 23: Residues and Waste from the Food Industries; Prepared Animal Fodder

 Chapter 24: Tobacco and Manufactured Tobacco Substitutes

(Chapter 25 -27 ) - Section V-Mineral Products

 Chapter 25: Salt; Sulphur; Earths & Stone; Plastering Materials; Lime & Cement

 Chapter 26: Ores, Slag and Ash

 Chapter 27: Mineral Fuels, Mineral Oils and Products of their Distillation; Bituminous Substances; Mineral Waxes

(Chapter 28 -38 ) - Section VI-Products of the Chemicals or Allied Industries

 Chapter 28: Inorganic Chemicals; Organic or Inorganic Compounds of Precious Metals, of Rare-Earth Metals, of
Radioactive Elements or of Isotopes

 Chapter 29: Organic Chemicals

 Chapter 30: Pharmaceutical Products

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 Chapter 31: Fertilisers

 Chapter 32: Tanning or Dyeing Extracts; Tannins and their Derivatives; Dyes, Pigments and Other Colouring Matte
Paints and Varnishes; Putty and other Mastics; Inks

 Chapter 33: Essential Oils and Resinoids; Perfumery Cosmetics or Toilet Preparations

 Chapter 34:Soap,Organic Surface-Active Agents,Washing Preparations,LubricatingPreparations, Artificial

Waxes,Prepared WaxesPolishing or Scouring Preparations, Candles and similar Articles, modelling Pastes, "Dental Waxes
Dental Preparations with Basis of Plaster

 Chapter 35: Albuminoidal substances; Modified Starches; Glues; Enzymes

 Chapter 36: Explosives; Pyrotechnic products; Matches; Pyrophoric Alloys; certain combustible preparations

 Chapter 37: Photographic or Cinematographic Goods

 Chapter 38: Miscellaneous Chemical Products

(Chapter 39 - 40 ) - Section VII-Plastics and Articles thereof; Rubber and Articles Thereof
 Chapter 39: Plastics and articles thereof

 Chapter 40: Rubber and Articles thereof

(Chapter 41 - 43 ) - Section VIII-Raw Hides and Skins, Leather, Furskins and Articles thereof;
saddlery and Harness; travel goods, Handbags and similar Containers; Articles of animal gut
(other than silk-worm Gut)
 Chapter 41: Raw Hides and Skins (other than furskins) and leather

 Chapter 42: Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of an
(other than silk-worm gut)

 Chapter 43: Furskins and artificial fur; manufactures thereof

(Chapter 44 -46 ) - Section IX-Wood and Articles of Wood; Wood Charcoal; cork and articles or
cork; Manufactures of Straw, of Esparto or of other Plaiting Materials; Basketware and
Wickerwork
 Chapter 44: Wood and Articles of Wood; Wood Charcoal

 Chapter 45: Cork and Articles of Cork

 Chapter 46: Manufactures of Straw, of esparto or of other plaiting materials; basketware and wickerwork

(Chapter 47 -49 ) - Section X-Pulp of wood or of other Fibrous Cellulosic Material; Recovered
(Waste and Scrap) Paper or Paperboard; Paper and Paperboard and articles thereof
 Chapter 47: Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) of paper or paperboa

Page 64
 Chapter 48: Paper and paperboard; articles of Paper pulp, of paper or of paperboard

 Chapter 49: Printed books, Newspapers, Pictures and other products of the printing industry; Manuscripts, Typescr
and Plans

(Chapter 50 -63 ) - Section XI-Textile and Textile Articles

 Chapter 50: Silk

 Chapter 51: Wool, fine or coarse animal hair, horse hair yarn and woven fabric

 Chapter 52:Cotton

 Chapter 53: Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn

 Chapter 54: Man-made Filaments

 Chapter 55: Man-made staple fibres

 Chapter 56: Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof

 Chapter 57: Carpets and other textile floor coverings

 Chapter 58: Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery

 Chapter 59: Impregnated, coated, covered or laminated textile fabrics; Textile articles of a kind suitable for industri

 Chapter 60: Knitted or crocheted fabrics

 Chapter 61: Articles of apparel and clothing accessories, knitted or crocheted

 Chapter 62: Articles of apparel and clothing accessories not knitted or crocheted

 Chapter 63: Other made up textile articles; sets; worn clothing and worn textile articles; rags

(Chapter 64 -67 ) - Section XII-Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-sticks,

seat-sticks, whips, Riding-crops and Parts thereof; Prepared Feathers and articles Made
therewith; artificial Flowers; Articles of Human Hair

 Chapter 64: Footwear, gaiters and the like; parts of such articles

 Chapter 65: Headgear and parts thereof

 Chapter 66: Umbrellas, sun umbrellas, walking sticks, seat-sticks, whips, riding-crops, and parts thereof

 Chapter 67: Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of hum

(Chapter 68 -70 ) - Section XIII-Articles of Stone, Plaster, Cement, Asbestos, Mica or similar

Page 65
 Materials; Ceramic Products; Glass and Glassware

 Chapter 68: Articles of stone, plaster, cement, asbestos, mica or similar materials

 Chapter 69: Ceramic Products

 Chapter 70: Glass and Glassware

(Chapter 71 ) - Section XIV-Natural or Cultured Pearls, Precious or Semi-Precious Stones,

Precious Metals, Metals clad with Precious Metal, and articles thereof; Imitation Jewellery; Coin

 Chapter 71: Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with preciou
metal, and articles thereof; imitation jewellery; coin

(Chapter 72 -83 ) - Section XV-Base Metals and Articles of Base Metal

 Chapter 72: Iron and Steel

 Chapter 73: Articles of Iron or Steel

 Chapter 74: Copper and articles thereof

 Chapter 75: Nickel and Articles thereof

 Chapter 76: Aluminium and Articles thereof

 Chapter 77: Reserved for Possible Future Use

 Chapter 78: Lead and Articles thereof

 Chapter 79: Zinc and Articles thereof

 Chapter 80: Tin and Articles thereof

 Chapter 81: Other Base metals; Cermets articles thereof

 Chapter 82: Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal

 Chapter 83: Miscellaneous articles of base metal

(Chapter 84 - 85 ) - Section XVI-Machinery and Mechanical Appliances; Electrical Equipment; Parts

thereof; sound Recorders and Reproducers, Television Image and Sound Recorders and
reproducers, Television Image and sound Recorders and Reproducers, and Parts and
Accessories of such article

Page 66
 Chapter 84: Nuclear reactors, boilers, machinery and mechanical appliance; parts thereof

 Chapter 85: Electrical machinery and equipment and parts thereof; sound recorders and reproducers,
television image and sound recorders and reproducers and parts and accessories of such articles

(Chapter 86 - 89 ) - Section XVII-Vehicles, Aircraft, Vessels and Associated Transport Equipment

 Chapter 86: Railway or tramway locomotives, rolling-stock and parts thereof; rail-way or tramway track fixtures and
fittingsand parts thereof; mechanical (including electro-mechanical)traffic signalling equipment of all kinds

 Chapter 87: Vehicles other than railway or tramway rolling stock, and parts and accessories thereof

 Chapter 88: Aircraft, Spacecraft and parts thereof

 Chapter 89: Ships, Boats and Floating Structures

(Chapter 90 - 92 ) - Section XVIII-Optical, Photographic, Cinematographic, measuring, checking,

precision, medical or surgical Instruments and apparatus; clocks and watches; musical
instruments; part and accessories thereof

 Chapter 90: Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical instrume
apparatus; parts and accessories thereof

 Chapter 91: Clocks and watches and parts thereof

 Chapter 92: Musical instruments; parts and accessories or such articles

(Chapter 93 ) - Section XIX-Arms and Ammunition; Parts and Accessories thereof

 Chapter 93: Arms and Ammunition; Parts and Accessories thereof

(Chapter 94 - 96 ) - Section XX-Miscellaneous Manufactured Articles


 Chapter 94: Furniture; Bedding, Mattresses, Mattress supports, cushions and similar stuffed furnishings;
Lamps and Lighting fittings, not elsewhere specified or included; illuminated signs, illuminate name-plates and the
like; Prefabricated Building


 Chapter 95: Toys, Games and Sports Requisites; Parts and Accessories thereof

 Chapter 96: Miscellaneous manufactured articles

(Chapter 97 - 98 ) - Section XXI-Works of art, Collectors' Pieces and Antiques


 Chapter 97: Works of Art, Collectors'' Pieces & Antiques

Page 67
 Chapter 98: Project Imports; Laboratory Chemicals; Passengers; Baggage; Personal importation''s by Air or Post;
Stores

19. Important Sea Ports

LOCATION CODES LOCATION CODES

Mumbai IN BOM1 Kolkatta IN CCU 1

Cochin IN COK1 Kandla IN IXY 1

Mangalore IN IXE 1 MarmagoA IN MRM 1

Chennai IN MAA 1 Nhavasheva IN NSA 1

Paradeep IN PRT 1 Tuticorin IN TUT1

Vishakapatnam IN VTZ 1 Kakinada IN KAK 1

Surat(Magadalla) IN MDA 1 Sikka IN SIK 1

ICDs ( Inland Container Depots)

CODES LOCATION CODES

Bangalore IN WFD 6 Coimbatore IN CBE 6

Delhi Patparganj IN PPG 6 New Gauhati IN AMG 6

Tuglakabad IN TKD 6 Goods Shed

Moradabad IN MBD 6 Ludhiana IN LDH 67

Hyderabad IN SNF 6 Pimpri (Pune) Dighi IN DIG 6

Kanpur IN CPC 6 Pitampur (Indore) IN IND 6

Jaipur IN JAI 6 Faridabad IN FBD 6

Agra IN BLJ 6 Varanasi IN BSB 6

Nagpur IN NGP 6 Sachin IN SAC 6

Kapadra IN KAP 6 Salem IN SXT 6

Jodhpur IN JUX 6 SInganalur IN SIL 6

Tirupur IN TUP 6 Mallanpur IN GWL 6

Page 68
 Waluj IN WAL 6

20. Top 10 export sales mistakes !

The best reason to export a product or service is to globalize your company and
prosper.
It can happen, but you will probably need to work on a whole new set of business
attitudes and assumptions.

If you want to be successful in your export sales efforts, here is a checklist of mistakes
to avoid.
Are you committing any / all of the following 10 mistakes?
1. I have all kind of products to offer...

...all I need to hear is what my customer wants.

A businessman interested in exporting auto parts to China told me he had the resources
to furnish any automobile product a customer wanted.

I said, "That kind of thinking won't work."

He was taken aback, but persisted, "You don't get it. My company works with hundreds
of suppliers. If a customer wants bearings, we can get it."
I responded, "You don't get it. The customers aren't supposed to lead us. We are
supposed to lead the customers!"
This clearly came as a big surprise to him. Maybe to you, too. But this is the kind of
thinking that succeeds in exports.

Solution: Focus and lead your customer like they have never been led before.

Have them ask for your bundle of clear-cut product or service ideas.
Take them where they didn't even know they could go in terms of satisfaction, increased
sales and profitability.

2. My product price is very competitive

Customers in the USA , EU , Middle East and other South African countries pay
attention to packaging first, quality next and price last.

Page 69
Set your priorities accordingly.

Create a package design or service concept that speaks for itself, and quality that
leaves no room for “competitive comparison”.
From there, it is only a matter of details to wrap up a sale.

3. That looks like a good foreign lead. Let's respond to it!

I know of a small company that occasionally received international inquiries.

They determined the importance of the inquiries by the style of the corporate letterhead
on which they received the query. Four-color shiny graphics received utmost attention.
Plainly designed stationery was literally thrown out.
You can imagine the professional consequences of this willingness to be impressed by
snappy presentations at the expense of substance!

Little did they know that most large, sophisticated and extremely busy companies
typically communicate on whatever piece of paper they have at the moment. They
generally use no more than about 10 words.

Remember, Pretension is out. Making things happen is in.

4. Let's export our product/ service to a bunch of foreign markets

Wrong!

Pick a product/ service and pick a market. Stick to it.

Put on your mental blinders and ignore distractions. Channel your energies and define
the territory in which you are going to play.
It takes a lot of discipline to resist the scattershot approach to doing business and
staying focused instead. But, after a while, the discipline becomes automatic.
Focus, focus, focus.
Persist, persist, persist! …..SME’s fail here.

5. I want to export my products but will not make any changes in it

Page 70
Tailor your product to meet the needs of the customer.
Forcing a customer to buy what you have available with little or no willingness on your
part to make improvements is not just insensitive but downright hostile.
Marketing has come a long way since the days of Henry Ford, who said, "The customer
can have a car painted any colour that he wants, so long as it is black."

6. Let's respond to the customer's interest and wait a couple of weeks to follow
up

Put yourself in the customer's shoes. Would you want to be treated that way?
Service brings satisfaction and satisfaction brings trial orders followed by repeat orders.
Anything less than immediate and consistent service only wastes your time -- and that
of your prospective customer!

7. I know my product/ service works well in India; I am certain it will fly overseas

Just because your product/ service is needed here in the India, it does not mean it will
be well-received in a foreign country.
Always check with either your prospective customer (let them review it at no charge) or
a local foreign consulate to see if they can help determine whether your service makes
sense in their country.

8. I can't afford a trip to visit my customers. Besides, I wouldn't know my way

around

You can't afford not to meet with prospective customers because, without face-to-face
contact, there will be no business.
Of course, there is no need to travel overseas until you are communicating / associated
with at least one importer/ buyer in that country.

Once you are communicating / associated with a customer, ask if you can visit them
and if they can spare the time to assist you on your first visit.

You will be surprised at how gracious people really are, and how eagerly they welcome
the opportunity to show you around their native land!

Page 71
Customers matter. I can't repeat it often enough. The personal meeting is the best way
to demonstrate your professional commitment.

9. We appointed an exclusive agent, yet didn't get any sales

When exporting a product, it is smart to ask a distributor what they anticipate selling in
the first year.

Request that their first order count for 20% of the anticipated volume, pre-paid, which
allows them the opportunity to have exclusivity.

Expect the balance of projected sales to be ordered during the rest of the year
(preferably in quarterly periods), with each subsequent order minimally the size of their
first one.

This allows you to monitor and exercise good control over the distributor's sales.

10. When our domestic sales slide, we should work hard at getting foreign sales

Going global is a commitment, not something you work at one day and forget about the
next.

It is an investment in your company's future that deserves your consistent attention

regardless of how well you are doing domestically. If you have the patience and
perseverance, your chances of success will be excellent.

If you are open to changing the way you think about global marketing, you have already
made a good beginning.

Now, you are ready to achieve success in export markets.

Page 72
 21. Draft LC

Applicant's Name:
MF No. :
BA No. :
LC REFERENCE:
AMOUNT :USD
Pls find below Swift Message for the LC issuance.

:27:
Sequence of Total

1/1
:40A:
Form of Documentary Credit

IRREVOCABLE, CONFIRMED & TRANSFERABLE.

:20:
Documentary Credit Number

:31C:
Date of Issue
:40E:
Applicable Rules

UCP LATEST VERSION

:31D:
Date and Place of Expiry
:51D:
Applicant Bank

:50:
Applicant

:59:
Beneficiary

Page 73
:32B:
Currency Code Amount

USD
:39A:
Percentage Credit Amount Tolerance

5%
:39C:
Additional Amounts Covered

INTEREST AMT: 0.00INTEREST PCNT: 0.000000

:41A:
Available With

:42C:
Drafts at

SIGHT FOR 100 PCT INVOICE VALUE

:42A:
Drawee

:43P:
Partial Shipments

:43T:
Transshipment

PROHIBITED
:44E:
Port of Loading/Airport of Departure

SANTOS SEAPORT IN BRAZIL

:44F:
Port of Discharge/Airport of Destination

:44C:

Page 74
Latest Date of Shipment

:45A:

Description of Goods and/or Services

…….. ICUMSA 45 RBU PACKING IN 50KG BAGS + 2% SPARE BAGS.AS

PERPROFORMA INVOICE NO.LOW/ DATED CFR …………………

:46A:

Documents Required

1) FULL SET LESS ONE ORIGINAL PLUS 3 NON NEGOTIABLE

COPIESSHIPPED/CLEAN ON BOARD OCEAN BILLS OF LADING ISSUED TO
THEORDER OF ……………………………. MARKEDFREIGHT PREPAID NOTIFYING
APPLICANT.
2) 2 ORIGINALS 3 COPIES SIGNED AND WITNESSED COMBINED CERTIFICATEOF
VALUE AND ORIGIN (CCVO) ON FORM C16 FORMAT WHICH MUST CONTAINTHE
FOLLOWING DETAILS: FORM M NUMBER,DESCRIPTION OF GOODS(AS IN FIELD
45A), PORT OF DESTINATION, NAME OF VESSEL,BILL OF LADING NUMBER,
DATE OF SHIPMENT, COUNTRY OF ORIGIN,COUNTRY OF SUPPLY, VOYAGE
NUMBER, FOB, FREIGHT AND CFR or CIF RESPECTIVELY
3) 2 ORIGINALS 3 COPIES PACKING LIST INDICATING THE GROSS WEIGHT.
4) 2 ORIGINALS 3 COPIES MANUFACTURER'S CERTIFICATE OF
PRODUCTIONSTATING STANDARDS TO WHICH GOODS HAVE BEEN PRODUCED
5) BENEFICIARY'S CERTIFICATE THAT ONE ORIGINAL AND 2COPIES EACH OF
ABOVE DOCUMENTS HAVE BEEN SENT BY COURIERDIRECTLY TO
…………………..WITHIN 20 DAYS OF SHIPMENT.

:47A:

Additional Conditions

1) ALL DOCUMENTS MUST BE ISSUED IN ENGLISH LANGUAGE

2) SHIPPING DOCUMENTS INCLUDING BILL OF LADING DATED PRIOR TO LC

Page 75
OPENING DATE 110428 ARE NOT ACCEPTABLE.
3) SIGNED BENEFICIARY'S CERTIFICATE STATING THAT THE PRODUCTHAS
BEEN SHIPPED IN CONFORMITY WITH THE TERMS OF THE LC AND THATALL
NECESSARY DOCUMENTS HAVE BEEN FORWARDED TO THE PAYING BANK
FOR NEGOTIATION AND PAYMENT.
4) A COVERING SCHEDULE TO ACCOMPANY EVERY SET OF
SHIPPINGDOCUMENTS FORWARDED TO ISSUING BANK BY NEGOTIATING
BANKSTATING TYPE OF DOCUMENTS BEING FORWARDED AND QUANTITY
(ORIGINAL AND COPIES).
5) BENEFICIARY TO PROVIDE PERFORMANCE BOND IN THE AMOUNT OF
US$100,000 per 12,500 MT loaded PAYABLE AGAINST NON DELIVERY UNDER THE
TERMS OF THE CONTRACT DATED _____ BETWEEN (NAME OF APPLICANT) AND
……………………….. COMPANY.

:71B:
Charges

ALL BANKING CHARGES AND COMMISSIONS RELATING TO THE ISSUANCE OF

THE FINANCIAL INSTRUMENT INCLUDING CONFIRMATION FEES ARE FOR THE
BUYER ACCOUNT

:49:
Confirmation Instructions

CONFIRM

:72:
Sender to Receiver Information
**

Page 76
 22. MIS Websites: FOR EXPORTS

www.commerce.nic.in -H S Code, Product data of Export-Imports

Research

www.traderscity.com -Import Agents

www.manaonline.org -Agent list/Credibility

www.commercial-agents.dk -AGENTS IN DENMARK

www.rbi.org.in -RBI

www.dgft.delhi.nic.in -DGFT

www.cbec.gov.in -Customs/Excise

www.projectexports.com -Project Exports

www.indianexportregister.com -Export marketing

www.dnb.co.in -Credit rating of-D&B

www.dnb.com -Dun & Bradstreet

www.icpcredit.com/companies/Al20.asp - Credit rating

www.ecgcindia.com -Credit insurance

www.eximbankindia.com -Exim Finance

www.altavista.com -Language Converter

www.google.com -Business Search

www.superpages.at -All countries yellow pages

www.indiatradefair.com -Trade Fair

www.tradeportalofindia.com -Trade Portal

www.fita.org - trade fair site

Page 77
www.p-maps.org -Export Research

www.intracen.org -ITC

www.aryawat.com -Indian embassy websites

www.theindianprogrammer.com/country/ind_mission.htm

www.techno-preneur.net/timeis/cgovt/links/indianMissions.html

www.chennaishipping.com/eandc6.html

www.networksolutions.com -Domain Booking

www.register.com - “ “

www.globalsources.com - Import sourcing

www.thaitrade.com

www.foreign-trade.com -

www.oanda.com/convert/classic - Currency Convertor

http://www.ita.doc.gov - usa trade

www.greatoffers4u.com

www.newsdirectory.com newspapers of the world

www.concorindia.com Container Volume

www.yellow.ca -Canada

www.yellowpages.ca -Canada

www.dfait-maeci.gc.ca -Canada Business

www.gelbeseiten.at/ -Austria

www.yellowpages.co.th -Thailand Yellow Pages

www.tradenetsl.lk - Sri Lanka

Page 78
www.indianconsulate.org.hk - HONGKONG

www.dews.com - Switzerland

www.ec21.com/ - Importers

www.aaaoe.com/ - Importers / Sports Goods

www.wanadoo.com

www.tradeattache.com

www.infoexport.gc.ca - CANADA

www.exportsource.gc.ca “

www.edc-see.ca “

www.sgs.com - Quality Inspection Agency

Customs Shipment Data Site:

www.eximpulse.com

www.cybex.in

www.zuaba.com

www.ieport.com

www.infodriveindia.com

www.exportgenius.in/

www.webcrawler.com

Important Trade Portals

www.indiantradeportal.in

www.infobanc.com/

Page 79
www.exportersindia.com/

www.importexportplatform.com

www.smelisting.com

www.tradeportalofindia.org

www.indiamart.com

www.eindiabusiness.com

www.tatab2b.com

www.ficci-b2b.com

www.tradekeyindia.com

www.businessmartindia.com

www.indiamart.com/

www.tradeindia.com

in.kompass.com

www.postoffers.in

www.businessmartindia.com

www.b2bindiatoday.com/

india.alibaba.com

indiab2b.co.in

Page 80
 Country Websites: FOR EXPORTS

www.rochdaleonline.com -UK Search

www.tradepartners.gov.uk -UK / EU Business

www.tradeeurope.com -Europe

www.bizeurope.com -Europe

www.muselik.com -Czech

www.cbi.nl -Holland Business

www.usatrade.gov -USA business

www.superpages.com -US yellow pages

www.fattyboombatty.com -US search

www.state-usa.gov -USA

www.ustradeonline.gov -USA

www.export.gov/comm_svc/ -USCS

www.mercantil.com -Latin America ( Brazil )

www.asianproducts.com -Asia Guide

www.brabys.co.za -South Africa business

www.ananzi.co.za -South Africa business

www.trade-africa.co.za - South Africa

www.cbg.org.cn -China Business

www.alibaba.com -China business

www.strategis.gc.ca -Canada

Page 81
 23. Import of Specific Categories of Goods: (Under Chapter 2)

2.24 Import of Samples

Import of samples shall be governed by para 2.65 of Handbook of Procedures.

2.25 Import of Gifts

Import of gifts shall be ‘free’ where such goods are otherwise freely importable under
ITC (HS). In other cases, such imports shall be permitted against an authorisation
issued by DGFT.

2.26 Passenger Baggage

(a) Bona-fide household goods and personal effects may be imported as part of
passenger baggage as per limits, terms and conditions thereof in Baggage Rules
notified by Ministry of Finance
(b) Samples of such items that are otherwise freely importable under FTP may also be
imported as part of passenger baggage without an Authorisation.
(c) Exporters coming from abroad are also allowed to import drawings, patterns, labels,
price tags, buttons, belts, trimming and embellishments required for export, as part of
their passenger baggage without an Authorisation.

2.27 Re – import of goods repaired abroad

Capital goods, equipments, components, parts and accessories, whether imported or

indigenous, except those restricted under ITC (HS) may be sent abroad for repairs,
testing, quality improvement or upgradation or standardization of technology and re-
imported without an Authorisation.

2.28 Import of goods used in projects abroad

Project contractors after completion of projects abroad, may import without an
Authorisation, goods including capital goods used in the project, provided they have
been used for at least one year.
2.29 Import of Prototypes

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Import of new / second hand prototypes / second hand samples may be allowed on
payment of duty without an Authorisation to an Actual User (industrial) engaged in
production of or having industrial licence / letter of intent for research in item for which
prototype is sought for product development or research, as the case may be, upon a
self- declaration to that effect, to satisfaction of customs authorities

2.30 Import through courier service

Imports through a registered courier service are permitted as per Notifications issued by
DoR. However, importability / exportability of such items shall be regulated in
accordance with this FTP/ ITC(HS).

Import Policy for Second Hand Goods :

2.31 Second Hand Goods

S. Categories of Second Hand Goods Import Conditions, if any

No. Policy
I Second Hand Capital Goods
i. Personal computers/ laptops Restricted Importable against
(a) including their refurbished / re- authorization
conditioned spares
ii. Photocopier machines/ Digital
multifunction Print & Copying
Machines
iii. Air conditioners
iv. Diesel generating sets.

(b) Refurbished / re-conditioned spares Free Subject to production of Chartered

of Capital Goods Engineer certificate to the effect
that such spares have at least 80%
residual life of original spare.

(c) All other second hand capital goods {other than (a) & (b) Free
above}

II Second Hand Goods other than Restricted Importable against

capital goods Authorization

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Import Policy for Metallic Waste and Scraps :

2. 32 Import of Metallic waste and Scrap

(a) Import of any form of metallic waste, scrap will be subject to the condition that it will
not contain hazardous, toxic waste, radioactive contaminated waste/scrap containing
radioactive material, any types of arms, ammunition, mines, shells, live or used
cartridge or any other explosive material in any form either used or otherwise as
detailed in para 2.54 of Handbook of Procedures.

(b) The types of metallic waste and scrap which can be imported freely and the
procedure of import in the shredded form; unshredded compressed and loose form, is
laid down in para 2.54 of Handbook of Procedures.

2.33 Removal of Scrap/waste from SEZ

A SEZ unit/Developer/ Co-developer may be allowed to dispose of in DTA any waste or

scrap, including any form of metallic waste and scrap, generated during manufacturing
or processing activity, without an authorization, on payment of applicable Customs Duty.

Other Provisions Related to Imports:

2.34 Import under Lease Financing

No specific permission of RA is required for lease financed capital goods.

2.35 Execution of Legal Undertaking (LUT) / Bank Guarantee (BG)

(a) Wherever any duty free import is allowed or where otherwise specifically stated,
importer shall execute, Legal Undertaking (LUT) / Bank Guarantee (BG) / Bond with the
Customs Authority, as prescribed, before clearance of goods.

(b) In case of indigenous sourcing Authorisation holder shall furnish LUT/BG/Bond to

RA concerned before sourcing material from indigenous supplier/ nominated agency as
prescribed in Chapter 2 of Handbook of Procedures.

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2.36 Private/Public Bonded Warehouses for Imports

(a) Private/ Public bonded warehouses may be set up in DTA as per terms and
conditions of notification issued by DoR. Any person may import goods except
prohibited items, arms and ammunition, hazardous waste and chemicals and
warehouse them in such bonded warehouses.

(b) Such goods may be cleared for home consumption in accordance with provisions of
FTP and against Authorisation, wherever required. Customs duty as applicable shall be
paid at the time of clearance of such goods.

(c) If such goods are not cleared for home consumption within a period of one year or
such extended period as the customs authorities may permit, importer of such goods
shall re-export the goods.

2.37 Special provision for Hides Skins and semi-finished goods

Hides, Skins and semi-finished leather may be imported in the Public Bonded
warehouse for the purpose of DTA sale and the unsold items thereof can be re-exported
from such bonded warehouses at 50% of the applicable export duty. However, this
facility shall not be allowed for import under Private Bonded warehouse.

2.38 Sale on High Seas

Sale of goods on high seas for import into India may be made subject to FTP or any
other law in force.

Page 85
 24. Foreign Trade Policy 2015-20 (CHAPTER 3)

EXPORTS FROM INDIA SCHEMES (EFIS)

3.00 Objective

The objective of schemes under this chapter is to provide rewards to exporters to offset
infrastructural inefficiencies and associated costs involved and to provide exporters a
level playing field.

3.01 Exports from India Schemes

There shall be following two schemes for exports of Merchandise and Services

respectively:

(i) Merchandise Exports from India Scheme (MEIS).

(ii) Service Exports from India Scheme (SEIS).

3.02 Nature of Rewards

Duty Credit Scrips shall be granted as rewards under MEIS and SEIS. The Duty Credit
Scrips and goods imported / domestically procured against them shall be freely
transferable. The Duty Credit Scrips can be used for :

(i) Payment of Customs Duties for import of inputs or goods, except items listed in
Appendix 3A.

(ii) Payment of excise duties on domestic procurement of inputs or goods, including

capital goods as per DoR notification.

(iii) Payment of service tax on procurement of services as per DoR notification.

(iv) Payment of Customs Duty and fee as per paragraph 3.18 of this Policy.

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Merchandise Exports from India Scheme (MEIS)

3.03 Objective

Objective of Merchandise Exports from India Scheme (MEIS) is to offset infrastructural

inefficiencies and associated costs involved in export of goods/products, which are
produced/manufactured in India, especially those having high export intensity,
employment potential and thereby enhancing India’s export competitiveness.

3.04 Entitlement under MEIS

Exports of notified goods/products with ITC[HS] code, to notified markets as listed in

Appendix 3B, shall be rewarded under MEIS. Appendix 3B also lists the rate(s) of
rewards on various notified products [ITC (HS) code wise]. The basis of calculation of
reward would be on realised FOB value of exports in free foreign exchange, or on FOB
value of exports as given in the Shipping Bills in free foreign exchange, whichever is
less, unless otherwise specified.

3.05 Export of goods through courier or foreign post offices using e-Commerce

(i) Exports of goods through courier or foreign post office using e-commerce, as notified
in Appendix 3C, of FOB value upto Rs. 25000 per consignment shall be entitled for
rewards under MEIS.
(ii) If the value of exports using e-commerce platform is more than Rs 25000 per
consignment then MEIS reward would be limited to FOB value of Rs.25000 only.

(iii) Such goods can be exported in manual mode through Foreign Post Offices at New
Delhi, Mumbai and Chennai.
(iv) Export of such goods under Courier Regulations shall be allowed manually on pilot
basis through Airports at Delhi, Mumbai and Chennai as per appropriate amendments in
regulations to be made by Department of Revenue. Department of Revenue shall fast
track the implementation of EDI mode at courier terminals.

Page 87
3.06 Ineligible categories under MEIS
The following exports categories /sectors shall be ineligible for Duty Credit Scrip
entitlement under MEIS

(i) EOUs / EHTPs / BTPs/ STPs who are availing direct tax benefits / exemption.
(ii) Supplies made from DTA units to SEZ units
(iii) Export of imported goods covered under paragraph 2.46 of FTP;
(iv) Exports through trans-shipment, meaning thereby exports that are originating in
third country but trans-shipped through India;
(v) Deemed Exports;
(vi) SEZ/EOU/EHTP/BPT/FTWZ products exported through DTA units;
(vii) Items, which are restricted or prohibited for export under Schedule-2 of Export
Policy in ITC (HS), unless specifically notified in Appendix 3B.
(viii)Service Export.
(ix) Red sanders and beach sand.
(x) Export products which are subject to Minimum export price or export duty.
(xi) Diamond Gold, Silver, Platinum, other precious metal in any form including plain and
studded jewellery and other precious and semi-precious stones.
(xii) Ores and concentrates of all types and in all formations.
(xiii) Cereals of all types.
(xiv) Sugar of all types and all forms.
(xv) Crude / petroleum oil and crude / primary and base products of all types and all
formulations.
(xvi) Export of milk and milk products.
(xvii)Export of Meat and Meat Products.
(xviii)Products wherein precious metal/diamond are used or Articles which are studded
with precious stones.
(xix) Exports made by units in FTWZ.

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Service Exports from India Scheme (SEIS)

3.07 Objective

Objective of Service Exports from India Scheme (SEIS) is to encourage export of

notified Services from India.

3.08 Eligibility

(a) Service Providers of notified services, located in India, shall be rewarded under
SEIS, subject to conditions as may be notified. Only Services rendered in the manner
as per Para 9.51(i) and Para 9.51(ii) of this policy shall be eligible. The notified services
and rates of rewards are listed in Appendix 3D.
(b) Such service provider should have minimum net free foreign exchange earnings of
US$15,000 in preceding financial year to be eligible for Duty Credit Scrip. For Individual
Service Providers and sole proprietorship, such minimum net free foreign exchange
earnings criteria would be US$10,000 in preceding financial year.
(c) Payment in Indian Rupees for service charges earned on specified services, shall be
treated as receipt in deemed foreign exchange as per guidelines of Reserve Bank of
India. The list of such services is indicated in Appendix 3E.
(d) Net Foreign exchange earnings for the scheme are defined as under:
Net Foreign Exchange = Gross Earnings of Foreign Exchange minus Total expenses /
payment / remittances of Foreign Exchange by the IEC holder, relating to service sector
in the Financial year.
(e) If the IEC holder is a manufacturer of goods as well as service provider, then the
foreign exchange earnings and Total expenses / payment / remittances shall be taken
into account for service sector only.
(f) In order to claim reward under the scheme, Service provider shall have to have an
active IEC at the time of rendering such services for which rewards are claimed.

Page 89
3.09 Ineligible categories under SEIS

(1) Foreign exchange remittances other than those earned for rendering of notified
services would not be counted for entitlement. Thus, other sources of foreign exchange
earnings such as equity or debt participation, donations, receipts of repayment of loans
etc. and any other inflow of foreign exchange, unrelated to rendering of service, would
be ineligible.
(2) Following shall not be taken into account for calculation of entitlement under the
scheme
(a) Foreign Exchange remittances:
I. Related to Financial Services Sector
(i) Raising of all types of foreign currency Loans;
(ii) Export proceeds realization of clients;
(iii) Issuance of Foreign Equity through ADRs / GDRs or other similar instruments;
(iv) Issuance of foreign currency Bonds;
(v) Sale of securities and other financial instruments;
(vi) Other receivables not connected with services rendered by financial institutions; and
II. Earned through contract/regular employment abroad (e.g. labour remittances);
(b) Payments for services received from EEFC Account;
(c) Foreign exchange turnover by Healthcare Institutions like equity participation,
donations etc.
(d) Foreign exchange turnover by Educational Institutions like equity participation,
donations etc.
(e) Export turnover relating to services of units operating under SEZ / EOU / EHTP /
STPI / BTP Schemes or supplies of services made to such units;
(f) Clubbing of turnover of services rendered by SEZ / EOU /EHTP / STPI / BTP units
with turnover of DTA Service Providers;
(g) Exports of Goods.
(h) Foreign Exchange earnings for services provided by Airlines, Shipping lines service
providers plying from any foreign country X to any foreign country Y routes not touching
India at all.

Page 90
(i) Service providers in Telecom Sector.
3.10 Entitlement under SEIS

Service Providers of eligible services shall be entitled to Duty Credit Scrip at notified
rates (as given in Appendix 3D) on net foreign exchange earned.

3.11 Remittances through Credit Card and other instruments for MEIS and SEIS

Free Foreign Exchange earned through international credit cards and other instruments,
as permitted by RBI shall also be taken into account for computation of value of exports.

3.12 Effective date of schemes (MEIS and SEIS)

The schemes shall come into force with effect from the date of notification of this Policy,
i.e. the rewards under MEIS/SEIS shall be admissible for exports made/services
rendered on or after the date of notification of this Policy.

3.13 Special Provisions

(a) Government reserves the right in public interest, to specify export products or
services or markets, which shall not be eligible for computation of entitlement of duty
credit scrip.

(b) Government reserves the right to impose restriction / change the rate/ceiling on Duty
Credit Scrip under this chapter.

(c) Government may also notify goods in Appendix 3A which shall not be allowed for
debiting through Duty Credit Scrips in case of import.

(d) Government may prescribe value cap of any kind for a product(s) or limit total
reward per IEC holder under this chapter at any time.

Page 91
Common Provisions for Exports from India Schemes (MEIS and SEIS)

3.14 Transitional Arrangement

For the goods exported or services rendered upto the date of notification of this Policy,
which were otherwise eligible for issuance of scrips under erstwhile Chapter 3 of the
earlier Foreign Trade Policy(ies) and scrip is applied / issued on or after notification of
this Policy against such export of goods or services rendered, the then prevailing policy
and procedure regarding eligibility, entitlement, transferability, usage of scrip and any
other condition in force at the time of export of goods or rendering of the services, shall
be applicable to such scrips.

3.15 CENVAT/ Drawback

Additional Customs duty/excise duty/Service Tax paid in cash or through debit under
Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR
rules or notifications. Basic Custom duty paid in cash or through debit under Duty Credit
scrip shall be adjusted for Duty Drawback as per DoR rules or notifications.

3.16 Import under lease financing

Utilization of Duty Credit Scrip shall be permitted for payment of duty in case of import
of capital goods under lease financing in terms of provision in paragraph 2.34 of FTP.

3.17 Transfer of export performance

(a) Transfer of export performance from one IEC holder to another IEC holder shall not
be permitted. Thus, a shipping bill containing name of applicant shall be counted in
export performance / turnover of applicant only if export proceeds from overseas are
realized in applicant’s bank account and this shall be evidenced from e - BRC / FIRC.
(b) However, MEIS, rewards can be claimed either by the supporting manufacturer
(along with disclaimer from the company / firm who has realized the foreign exchange
directly from overseas) or by the company/ firm who has realized the foreign exchange
directly from overseas.

Page 92
3.18 Facility of payment of custom duties in case of E.O. defaults and fee through
duty credit scrips

(a) Duty Credit Scrip can be utilised / debited for payment of Custom Duties in case of
EO defaults for Authorizations issued under Chapters 4 and 5 of this Policy. Such
utilization /usage shall be in respect of those goods which are permitted to be imported
under the respective reward schemes. However, penalty / interest shall be required to
be paid in cash.
(b) Duty credit scrips can also be used for payment of composition fee under FTP, for
payment of application fee under FTP, if any and for payment of value shortfall in EO
under para 4.49 of HBP 2015-20.

3.19 Risk Management System

(a) A Risk Management System shall be in operation whereby every month Computer
system in DGFT.
Headquarters, on random basis, will select 10% of cases for each RA where scrips
have already been issued, under each scheme. RA in turn may call for original
documents in all such selected cases for further examination in detail. In case any
discrepancy and/ or over claim is found on such examination, the applicant shall be
under obligation to rectify such discrepancy and/or refund over claim in cash with
interest at the rate prescribed under section 28 A A of the Customs Act 1962, from the
date of issue of scrip in the relevant Head of Account of Customs within one month. The
original holder of scrip, however, may refund such over claim by surrendering the same
scrip whether partially utilized or fully unutilized, without interest.

(b) Regional Authority may ask for original proof of landing certificate, annexures
attached to ANFs or any other document, which has been uploaded digitally at any time
within three years from the date of issue of scrip. Failure to submit such documents in
original would make applicant liable to refund the reward granted along with interest at
the rate prescribed under section 28 A A of the Customs Act 1962, from the date of
issuance of scrip. It would be the responsibility of applicant to maintain such documents,
certificate etc. for a period of at least three years from the date of issuance of scrips.

Page 93
3.20 Status Holder

(a) Status Holders are business leaders who have excelled in international trade and
have successfully contributed to country’s foreign trade. Status Holders are expected to
not only contribute towards India’s exports but also provide guidance and handholding
to new entrepreneurs.

(b) All exporters of goods, services and technology having an import-export code (IEC)
number shall be eligible for recognition as a status holder. Status recognition depends
upon export performance. An applicant shall be categorized as status holder upon
achieving export performance during current and previous two financial years, as
indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be
counted on the basis of FOB value of export earnings in free foreign exchange.

(c) For deemed export, FOR value of exports in Indian Rupees shall be converted in
US$ at the exchange rate notified by CBEC, as applicable on 1st April of each Financial
Year.

(d) For granting status, export performance is necessary in at least two out of three
years.

3.21 Status Category

Status Category Export Performance

FOB / FOR (as converted) Value
(in US $ million)
One Star Export House 3
Two Star Export House 25
Three Star Export House 100
Four Star Export House 500
Five Star Export House 2000

Page 94
3.22 Grant of double weightage

(a) The exports by IEC holders under the following categories shall be granted double
weightage for calculation of export performance for grant of status.Micro, Small &
Medium Enterprises (MSME) as defined in Micro, Small & Medium Enterprises
Development (MSMED) Act 2006.

(ii) Manufacturing units having ISO/BIS.

(iii) Units located in North Eastern States including Sikkim and
Jammu & Kashmir.
(iv) Units located in Agri Export Zones.

(b) Double Weightage shall be available for grant of One Star Export House Status
category only. Such benefit of double weightage shall not be admissible for grant of
status recognition of other categories namely Two Star Export House, Three Star Export
House, Four Star export House and Five Star Export House.
(c) A shipment can get double weightage only once in any one of above categories.

3.23 Other conditions for grant of status

(a) Export performance of one IEC holder shall not be permitted to be transferred to
another IEC holder. Hence, calculation of exports performance based on disclaimer
shall not be allowed.
(b) Exports made on re-export basis shall not be counted for recognition.
(c) Export of items under authorization, including SCOMET items, would be included for
calculation of export performance.

3.24 Privileges of Status Holders

A Status Holder shall be eligible for privileges as under:

(a) Authorisation and Customs Clearances for both imports and exports may be granted
on self-declaration basis;

Page 95
(b) Input-Output norms may be fixed on priority within 60 days by the Norms Committee;
(c) Exemption from furnishing of Bank Guarantee for Schemes under FTP, unless
specified otherwise anywhere in FTP or HBP;

(d) Exemption from compulsory negotiation of documents through banks. Remittance /

receipts, however, would be received through banking channels;

(e) Two star and above Export houses shall be permitted to establish Export
Warehouses as per Department of Revenue guidelines.

(f) Three Star and above Export House shall be entitled to get benefit of Accredited
Clients Programme (ACP) as per the guidelines of CBEC (website: http://cbec.gov.in).

(g) The status holders would be entitled to preferential treatment and priority in handling
of their consignments by the concerned agencies.

(h) Manufacturers who are also status holders (Three Star/Four Star/Five Star) will be
enabled to self-certify their manufactured goods (as per their IEM/IL/LOI) as originating
from India with a view to qualify for preferential treatment under different preferential
trading agreements (PTA), Free Trade Agreements (FTAs), Comprehensive Economic
Cooperation Agreements (CECA) and Comprehensive Economic Partnership
Agreements (CEPA). Subsequently, the scheme may be extended to remaining Status
Holders.

(i) Manufacturer exporters who are also Status Holders shall be eligible to self-certify
their goods as originating from India as per para 2.108 (d) of Hand Book of Procedures.

(j) Status holders shall be entitled to export freely exportable items on free of cost basis
xport promotion subject to an annual limit of Rs 10 lakh or 2% of average annual export
realization during preceding three licencing years whichever is higher.

Page 96
 Formats
Performa Invoice

Exporter Pro Ref & Date Exporter’s Reference No.:

Importer’s Ref No. & Date

Consignee

Country of Origin of Goods Country of Final

Destination
Terms of Delivery and Payments Terms:

A. Incoterms:
Carriage By : Place By Receipt by Pre
Road/ Rail/ Sea/ Air/ Carrier
Multimodal
Port of Loading/Dispatch B. Payment Terms
Port of Discharge Final Destination
Marks & No. s/Container No. & Kind of Description of Cargo Quantity Rate Amount
No.

Amount Chargeable ( In Word)

……………………………………………………………………………………………………………………………………….. Total

Declaration: I hereby declare that the prices indicated in the Signature & Date
Performa Invoice are actual price and all particulars given as (With Stamp)
above are true and correct to the best of my knowledge & belief.

Page 97
 Commercial Invoice

Exporter Invoice Ref & Date Exporter’s Reference No.:

Importer’s Order No. & Date

Other Reference ( If any)

Consignee Buyer ( If Other than Consignee)

Country of Origin of Country of Final

Cargo/Goods Destination
Terms of Delivery and Payments Terms:

A. Incoterms:
Pre Carriage By: Place By Receipt by Pre
Carrier

Truck/ Train/ Vessel/ Port of Loading/Dispatch B. Payment Terms

Flight No.
Port of Discharge Final Destination
Marks & No. s/Container No. & Kind of Description of Cargo Quantity Rate Amount
No. Cartons/
Packages

Amount Chargeable (In Word)

……………………………………………………………………………………………………………………………………….. Total

Declaration: I hereby declare that the prices indicated in the Signature & Date
Commercial Invoice are actual price and all particulars given as (With Stamp)
above are true and correct to the best of my knowledge & belief.

Page 98
 Packing List
Exporter Invoice Ref & Date

Importer’s Order No. & Date

Other Reference ( If any)

Consignee Buyer ( If Other than Consignee)

Country of Origin of Country of Final

Cargo/Goods Destination

Pre Carriage By: Place By Receipt by Pre

Carrier

Truck/ Train/ Vessel/ Port of Loading/Dispatch

Flight No.
Port of Discharge Final Destination
Marks & No. s/Container No. & Kind of Description of Cargo Quantity Rate
No. Cartons/ Amount
Packages

Signature & Date

(With Stamp)

GSP Form A

Page 99
 GSP (FORM A)
________________________

1. Goods consigned from(exporter's business name, Reference No.

address, country)

GENERALIZED SYSTEM OF PREFERENCES

2. Goods consigned to(Consignee's name , address , country) CERTIFICATE OF ORIGIN
(Combined declaration and certificate)
FORM A
issued in ....................................................................
(country)

3. Means of transport and route(as far as known) 4. For official use

6. Marks 8. 9. Gross
Item and 7. Number and Kind of Packages; Origin criterion weight or 10. Number and date of
number numbers of description of goods (see notes other invoices
packages overleaf) quantity

11. Certification 12. Declaration by the exporter

It is hereby certified, on the basis of control carried
out, that the declaration by the exporter is correct.
The undersigned hereby declares that the above details and
statements are correct; that all the goods were produced
in........................................................ (Country) and that they comply
with the origin requirements specified or those goods in the
generalized system of preferences for goods exported
to........................................ (importing country)

......................................................................
Place and date, signature and stamp of ................................................................................................................
certifying authority Place and date, signature of authorized signatory

Certificate of Origin (Non Preferential)

Page 100
Exporter
No. _____________________

Consignee

Name and Logo of

Chamber of Commerce
Pre carriage by Place of Receipt by Pre-
carrier

Vessel / Flight No Port of Loading

Port of Discharge Final Destination

Marks & Nos./ No. &Kind of Description of Goods Quantity Value

Container No. Pkgs.

Invoice No:
It is hereby certified that goods
Invoice Date: are of Indian Origin

IEC NO.
AUTH. SIGN.
Signature of Exporter:
CERTIFICATION

It is hereby certified that to the best of our knowledge and belief the above-mentioned goods are of Indian origin.

Authorized Signatory
Secretary Chamber of Commerce

Page 101
 (For Pharma Only)
(Annexure-A3)

(This document to be raised on EXPORTERS Letter Head)

SHIPPERS CERTIFICATE FOR NON-HAZARDOUS CARGO

B/L NO. PORT OF DEPARTURE PORT OF DESTINATION

This is to certify that the articles / substances of this shipment are properly described by name, that they are not listed in the current addition
of IATA Dangerous Goods Regulations (DGR) Alphabetical list of Dangerous goods, not do they correspond to any of the hazard classes
appearing in the DGR, Section 3, Classification of Dangerous Goods and that they are known to be not dangerous, i.e. not resulted., Further
more the shipper confirms that the goods are in proper condition for transportation on passenger carrying aircraft. (DGR para 3,4,23)

Marks and Number Proper Description of goods (Trade Names Net. Quantity per package
not permitted specify each articles
separately)

Name and address of shipper

EXPORTER NAME &

ADRESS

For EXPORTER NAME

AUTHORISED SIGNATORY

Page 102
 (This document to be raised on EXPORTERS Letter Head)

SHIPPING BILL NO.: _______________ Date: ____________

SDF FORM
Declaration under Foreign Exchange Management Act, 1999

1. I / We hereby declare that I / We am /are the SELLER / CONSIGNOR of the goods

in respect of which this declaration is made and the particulars given in the
shipping bill no.: _________________ dated ____________ are true and that

a. The value as contracted with the buyer is same as the full export the
above shipping bill.
b. The full export value of the goods is not ascertainable at the time of export
and that the value declared is that which I / We, having Regard to the
prevailing marketing conditions, expect to receive on the sale of goods in
the overseas market.
2. I / We undertake that I / We will deliver to the bank named herein State Bank of
India, Commercial Branch, Secunderabad. The foreign exchange representing
the full export value of the goods within six months from the date of Exports in
the manner prescribed in the FEMA (Export of goods and services) Regulation,
2000.
3. We declare that we are resident in India and we have a place of business in India.
4. We are not in Caution List of the Reserve Bank of India.
5. Invoice No.:088/11-12 date: 28.10.2011 total Rs. 19642000.00 Invoice value
US$ 402500.00 Date: 28.10.11

For EXPORTER NAME.,

AUTHORISED SIGNATORY

Page 103
 Date:

BILL OF EXCHANGE

INVOICE NO. : DATE :

DRAWN UNDER LETTER OF CREDIT NO. : DATE OF ISSUE: 09.09.2002 OF DEUTSCHE BANK AG

AT SIGHT OF THIS FIRST OF EXCHANGE (SECOND OF THE SAME TENOR UNPAID) PAY TO THE
ORDER OF EXPORTER BANK, ACU$ 1125.00/- (ACU$ DOLLARS ONE THOUSAND ONE HUNDRED
AND TWENTY FIVE ONLY)

TOWARDS VALUE RECEIVED FOR THE SUPPLY OF PHARMA RAW MATERIALS FOR PHARMA

INDUSTRY: LEVOCETIRIZINE DI-HCL QTY. 5 KGS. AS PER INVOICE STATED ABOVE TO M/s.

CUSTOMER ADDRESS

PLACE: HYDERABAD For EXPORTER NAME.,

DATE:

AUTHORISED SIGNATORY

TO,

CUSTOMER BANK ADDRESS

(ON EXPORTERS LETTER HEAD)

Page 104
 Annexure- A

EXPORT VALUE DECLARATION

(See Rule 7 of Customs valuation (Determination of Value Export Goods) Rules, 2007

1. Shipping Bill No. & Date:-

2. Invoice No. & Date: -
3. Nature Of Transaction

Sale √ Sale on consignment Basis  Gift 

Sample  Other 

4. Method of Valuation Rule 3  Rule 4  Rule 5  Rule 6 

(See Export Valuation Rules)

5. Whether Seller and buyer are related Yes  No √

6. If yes, whether relationship has Yes  No √

Influenced the price

7. Terms of Payment :

8. Terms of Delivery : CIF SEA /AIR

9. Previous exports of Identical/ Similar goods, if any

Shipping Bill No and Date:

10. Any other relevant information ( Attach Separate sheet, if necessary)

Page 105
DECLARATION

1. I/We hereby declare that the information furnished above is true, complete and
correct in every respect.

2. I/We also undertake to bring to the notice of the proper officer any particulars
which subsequently come to my/our knowledge which will have bearing on a
valuation.

Place:

Date: Authorized Signatory

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