WHAT IS EXPORT

Goods and services that are produced

domestically and sold to buyers in foriegn
country.
 Reasons for start Export
 Proactive

 Profit Margin
 Technological advantage
 Managerial Urge
 Tax Benefit

 Reactive

 Competitive Pressure
 Over Production
 Saturated Domestic Market
 Excess Market
 Analysis before start Export
 Performance of domestic market
 Analyze of Resources
 Degree of Commitment
 Risk
 Economic Factor
 Internal Export Process Flow
 Prepare business Plan

 Product selection for Export

 Location of offices

 Registration for export

 Internal Export Process Flow
 Market identification

3 Major criteria

Market attractiveness
Competitive Advantages
Risk

Estimate of current Market Potential

Forecast of sales Potential
Forecast of cost & Profit
Estimate rate of return on investment
 Internal Export Process Flow
 Channel selection

 Identifying Potential buyers

 Prices Range as Per market analysis

 Internal Export Process Flow
 Determined the Mode of Payment

 Determined the Financing for Export

 Establish Team for different Dept

 Marketing Dept
 Internal Export Process Flow
 Production Dept

 Docs and Shipping Dept

 Research & Devolpment Dept

 Requirement of Export Transaction
 Purchase order
 Performa invoice
 LETTER OF CREDIT
 Commercial invoice
 Shipping Bill
 Bill of landing
 Certificate of Origin
 GSP
 E Form
 Purchase order (PO)

 Name of exporter and Importer

 Item of sale
 Unit Quantity
 Unit Price
 Packing
 Incoterms Delivery Term
 Mode of Payment
 Mode of Transportation
 Currency in which transaction will be held
 Validity of Period
 Arbitration Cluase
 Destination Port
 NCM number
 Proforma invoice
 Name of exporter Bank and Importer Bank
 Item of sale
 Unit Quantity
 Unit Price
 Packing
 Incoterms Delivery Term
 Mode of Payment
 Mode of Transportation
 Currency in which transaction will be held
 Arbitration Cluase
 Loading Port and Destination Port
 NCM number
 Mode of Payment

 Risk is always involve due to Distance

 Cash In advance
 Wire Payment (TT)
 Letter of credit (LC)
 Confirmed Letter of credit
 Cash against Documents (CAD)
 Consignment
 DA
 Commercial invoice

Document required by customs to determine true value of the

imported goods, for assessment of duties and taxes.

It containes the following information

Buyer and seller name

Quantity and weight of shipment
type of packaging
Complete discription of goods
Unit value and total value
Insurance and shipping information
 Shipping bill (Goods Declaration)

 This Document is issued by custom authority

of Exporter after custom clearence of goods .
 This is the Official Prove that goods has been
cleared by exporter Customs.
 Bill of Landing
 Bill of Lading is the official document prepared by the carrier
duly accepting the goods for shipment .

It contain following information .

 Consignee and Consigner Name

 Quantity and Value of goods
 Vessel detail ( Date , Time ,Port )

 Bill of lading is a contract to carry the goods to the said

destination based on which seller can claim consideration and
buyer can take delivery of the goods
 Certificate of origin
 It is certified as declaration of shipments
country of origin that goods are made by
domestically .

 Certificate of origin is commonly issued by a

trade promotion office, or a chamber of
commerce in the exporting country.
 GSP
 Under the GSP (Generalised System of
Preferences) program or the preferential tariff
treatment, a free or reduced duty is granted by
developed countries to certain manufactured
goods from the least developed countries, in
order to bolster their exports and economic
growth
 E Form
 It is issue by the Exporter Bank.

 Relationship Agreement between Bank and

exporter .

 Most Important Document