Export Import Procedure and

Documentation

By
Prof Rita Khatri
Mcom, MFM, MPhil
Export ?
As per the section of foreign trade
(development and regulation) act
1992, the term export is defined “
taking goods by land,sea or air.As
such the goods must leave india or
cross the customs frontiers of india
to the foreign destination for being
reckoned as export.
 

Scope
 International Marketing Research
 Export risk management
 Export organization
 Export formalities
 EXIM policy
 Export incentives
 Export pricing
Classification of goods
 Free goods
 Prohibited goods
 Restricted goods
 State trading enterprise
 Restriction on countries of exports
Concepts
Import export code number-
 unique 10 digit code number issued by DGFT.
 Mandatory for exporter and importer
 The IEC number allotted to an applicant is valid for all
its branches /divisions/ units/factories
 For getting IEC number you need:
pan number
current Bank account
Bank certificate.
Registration cum membership
certificate-
 Essential document for getting

license/permission/ benefits.
 Issued by FIEO/EPC
Export license:
 Issued by appropriate licensing agency
after which an exporter is allowed to export
under restricted category of the ITC(HS)
classification of exports and imports.
 Export license depends on the nature of
good transported as well as destination.
 It is issued for only the goods
mentioned in the schedule 2 of ITC
(HS) classification of export items
Examples

 Live horses- kathiawari, marwari breeds

 Live cattle
 Wheat seeds, cashew seed and plants.
 Urea
 Pure race of silk worms, silkworm seeds
 Deoiled groundnut cakes
 Vintage motor cake, parts and components
 Fresh chilled, or frozen silver pomfret of
weight less than 300 grams.
Export pricing
 Value of goods and services expressed in
terms of services
 Depends on
cost
Incentives
Relationship
Government policy
Brand image
Competition
INCOTERMS
 International commercial terms
brought out by chamber of commerce
constitute set of rules . It is from the
INCOTERM chosen the exporter and
importer will come to know about the
cost which both have to bear
Incoterms classification
Group E
EXW- Ex-work price
Group F
FCA- Free carrier
FAS- Free Along ship
FOB- Free on Board
Group C
CFR- Cost and Freight
CIF-Cost insurance and Freight
CPT-Carriage paid to
CIP-Carriage and insurance
Group D
DAF- Delivered at Frontier
DES- Delivered ex-ship
DEQ- Delivered EX quay
DDU- Delivered duty unpaid
DDP- Delivery duty paid
 INCOTERM between buyer and
seller
loading
Port

FOB, CIF DES, DAQ,DAF Destination

FCA,CPT ,CIP Port

FOB, CIF DES, DAQ,DAF

EXW DDU/DDP

Seller Buyer
Export quotation
 FOB price
EX-factory cost+packing
charges+Transportation
charges+loading
charges+documentation charges+any
other expenditure+ profit-Duty
drawback
Export quotation
 CFR price(cost and Freight Price)
FOB price + freight charges
 CIF Price(Cost insurance and Freight)
FOB price+freight+Insurance
Registration formalities for exports
 Registration of the organization
 Opening bank account
 Obtaining PAN number
 Obtaining BIN number
 Obtaining import export code number
 Registration with value added tax and sales
tax authority
 Registration with EPC
 Registration with ECGC
 Registration with other authorities
Preparation for exports
 Selecting product for export business
 Design the product .
 Product positioning
 Selecting the target market
 Selection of the buyer
collection of buyers information
communication with prospective buyers.
selection of the overseas buyer.
 Negotiation with overseas buyer.
 Appointment of overseas agent.
Method of Exporting
 Direct exporting
 Indirect exporting
 Licensing
 Joint venture
 Turnkey project
 BOT
 Franchising
Export marketing organization
 Manufacturer exporter
 Merchant exporter
 Status holder exporter
 Service export house
 Canalizing agencies
 Export consortia
Status holder exporter
Status category FOB value of exports
made during the
current plus previous
three years
Export house 20 crs
Star export house 100 crs
Trading house 500 crs
Star trading house 2500 crs
Premier trading house 7500 crs