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Exporting Products into International Markets
HOW TO START EXPORTING GOODS INTO INTERNATIONAL
MARKETS
INTRODUCTION
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.
9) Sampling
Providing customized samples as per the demands
of Foreign buyers help in getting export orders. As per FTP 2015-2020,
exports of bonafide trade and technical samples of freely exportable items
shall be allowed without any limit.
10) Pricing/Costing
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