Exporting Products into International Markets
HOW TO START EXPORTING GOODS INTO INTERNATIONAL MARKETS
Whenever we talk about Business, Export Business is always treated as something which has a very wide scope but is considered to be a complex one to set up. Businesses that sell their goods and services to customers in other countries are exporting them abroad – they are producing them in one country and shipping them to another. Businesses that are involved in exporting can rapidly expand their potential market.
Exports and Imports in India are regulated by Foreign Trade Policy laid out by Central government. According to Foreign Trade development and Regulation’s act, 1992 export is an act of taking out of India, any goods by land, sea or air and involved with proper transaction of money in return.
HOW TO START EXPORT
Let us try to make you understand on how to start export, since it is a very wide concept and lot of preparations is required by an exporter before starting an export business. To start export business, the following steps may be followed:
1) Establishing an Organization
To start the export business, First an Organization has to be set up which could be a sole Proprietary concern, A Partnership firm or Company and as per the procedure with an attractive name and logo to represent it.
2) Opening a Bank Account
A current account with a Bank authorized to deal in Foreign Exchange should be opened.
3) Obtaining Permanent Account Number (PAN)
It is necessary for every exporter and importer to obtain a PAN from the Income Tax Department.
4) Obtaining Importer-Exporter Code (IEC) Number
As per the Foreign Trade Policy, it is mandatory to obtain IEC for export/import from India. Para 2.05 of the FTP, 2015-20 lays down the procedure to be followed for obtaining an IEC, which is PAN based.
5) 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.
6) Selection of product
All items are freely exportable except few items appearing in prohibited/ restricted list..
7) Selection of Markets
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. Export promotion agencies, Indian Missions abroad, colleagues, friends, and relatives might be helpful in gathering information.
8) Finding Buyers
Participation in trade fairs, buyer seller meets, exhibitions, B2B portals, web browsing are an effective tool to find buyers. EPC’s, Indian Missions abroad, overseas chambers of commerce can also be helpful. Creating multilingual Website with product catalogue, price, payment terms and other related information would also help.
Providing customized samples as per the demands of Foreign buyers help in getting export orders. As per , exports of bonafide trade and technical samples of freely exportable items shall be allowed without any limit.
Product pricing is crucial in getting buyers’ attention and promoting sales in view of international competition.
11) Negotiation with Buyers
After determining the buyer’s interest in the product, future prospects and continuity in business, demand for giving reasonable allowance/discount in price may be considered.
12) Covering Risks through ECGC
International trade involves payment risks due to buyer/ Country insolvency. These risks can be covered by an appropriate Policy from Export Credit Guarantee Corporation Ltd (ECGC). Where the buyer is placing order without making advance payment or opening letter of Credit, it is advisable to procure credit limit on the foreign buyer from ECGC to protect against risk of non-payment. However there are ways and tricks of getting payment in advance.
Make exporting easier
Doing business outside India can be a complex undertaking. The Export Import Management Workshop offered by Aaronica Global EXIM PVT LTD by EXIM guru Mr. Jayprakash Somani is intended to help get your business export-ready and well positioned for commercial success abroad. Learn the essential principles of exporting whether you are a novice, intermediate or advanced exporter. The Guide compiles practical insight and proven tips used successfully by thousands of Indian firms of all sizes and in all sectors. The Workshop will help you to:
· Assess your company’s export readiness.
· Finding Export Import Statistics.
· Build an Export Plan.
· Research and select your target market.
· Realise the benefits of Free Trade Agreement
· Global Marketing.
· Create an Export Marketing Plan.
· Benefits and Support to carry on Export provided by the Government.
· Identify Delivery methods for your target market.
· Develop a sound Financial plan.
· Understand the key Legal aspects of International Trade.
· Apply Corporate Social responsibility practices
For more information you can visit www.importexporteducation.com and get in touch with the expert