Import and Export
Overview of Import-Export Business by Sarath Madala
INBM Jan'14 batch
CONTENTS:
•
Introduction
•
Incoterms
•
Shipping Documents
•
Cargo Insurance
•
Payment modes/Letter of credit
•
Advantages
•
Challenges
INTRODUCTION:
•
Trade: Trade is transfer of ownership of goods or services
•
International trade: exchange of capital, goods and services across international borders
•
Export: In international trade export refers to selling goods and services produced in the home country to other countries.
The seller of such goods and services referred to as “Exporter”
•
Import: in international trade import reports to buying goods and services produced in a foreign country to other countries
The buyer of such goods and services is referred to as “Importer”
Two Classes of Exports:
Physical Exports: If the goods physically go out of the country or services are rendered outside the country then it is called as physical export.
Deemed Exports: Where the goods do not go out of the country physically they can be termed as deemed exports. This will be subject to certain conditions as prescribed by the DGFT. Under
Deemed Exports, the goods may be supplied to the manufacturer exporter who ultimately export a finished product of which this supply forms a part and ultimately go out of the country. E.g.
Supply of fabrics to the garment exporter who exports the garments made out of the said fabric.
The government may announce from time to time the types of supplies that may be considered as deemed export. The Foreign Trade Policy gives the list of supplies considered under the
Deemed Export Category. The policies and procedures are different for Physical Exports and Deemed
Exports as also the benefits available. In a nutshell, Deemed Exports do not enjoy all the benefits that are available under Physical Export. The Foreign Trade defines exports as taking out of India any goods by
INBM Jan'14 batch
CONTENTS:
•
Introduction
•
Incoterms
•
Shipping Documents
•
Cargo Insurance
•
Payment modes/Letter of credit
•
Advantages
•
Challenges
INTRODUCTION:
•
Trade: Trade is transfer of ownership of goods or services
•
International trade: exchange of capital, goods and services across international borders
•
Export: In international trade export refers to selling goods and services produced in the home country to other countries.
The seller of such goods and services referred to as “Exporter”
•
Import: in international trade import reports to buying goods and services produced in a foreign country to other countries
The buyer of such goods and services is referred to as “Importer”
Two Classes of Exports:
Physical Exports: If the goods physically go out of the country or services are rendered outside the country then it is called as physical export.
Deemed Exports: Where the goods do not go out of the country physically they can be termed as deemed exports. This will be subject to certain conditions as prescribed by the DGFT. Under
Deemed Exports, the goods may be supplied to the manufacturer exporter who ultimately export a finished product of which this supply forms a part and ultimately go out of the country. E.g.
Supply of fabrics to the garment exporter who exports the garments made out of the said fabric.
The government may announce from time to time the types of supplies that may be considered as deemed export. The Foreign Trade Policy gives the list of supplies considered under the
Deemed Export Category. The policies and procedures are different for Physical Exports and Deemed
Exports as also the benefits available. In a nutshell, Deemed Exports do not enjoy all the benefits that are available under Physical Export. The Foreign Trade defines exports as taking out of India any goods by