Vishnu.

N
MBA NIET

Exporting & Importing OF Cashewnuts

Stages of exporting
 As companies gain greater experience and expertise in
exporting they diversify their markets to countries which are
farther away and new potential markets.

 Preengagement- companies selling goods and services

solely in the domestic market, they aren't exporting now.

 Initial exporting- companies that see a lot of scope in export

markets.

 Advanced exporting- companies become regular exporters,

companies may gain extensive overseas experience.
DESIGNING AN EXPORT STRATEGY

1.REQUEST FOR GOODS

2.RECEIPT OF ORDER CREDIT CHECK OF BUYER
3.INLAND SHIPPING OF GOODS BY RAIL,TRUCK, AIR OR
WATER
4.WAREHOUSING, INSURANCE, CUSTOMS , LOADING ETC…
5.SHIPPING
6.SEAPORT, AIRPORT UNLOADING.
7.FINANCIAL TRANSACTION – MONEY IS CREDITED TO THE
SELLERS BANK ACCOUNT
8.IMPORT DOCUMENTS SUBMITTED TO CUSTOMS.
9. CUSTOMS RELEASE.
10. INLAND SHIPPING BY TRUCK, RAIL, AIR OR WATER.
11. RECEIPT OF GOODS BY BUYER FOR IMMEDIATE SALE OR
WAREHOUSING.
ROLE OF CUSTOMS AGENCIES
 THE PRIMARY DUTY OF CUSTOMS AGENCY IS THE
ASSESSMENT AND COLLECTION OF DUTIES, TARRIFFS
AND FEES FOR IMPORT MERCHANDISE ACCORDING
TO THE ENFORCEMENT OF CUSTOMS AND RELATED
LAWS , IT ALSO DEALS WITH SMUGGLING
OPERATIONS AND ANTI TERRORISM ACTIVITIES.
 AN IMPORTER NEEDS TO KNOW HOW TO CLEAR
GOODS, WHAT DUTIES TO PAY AND WHAT LAWS EXIST
REGARDING THE IMPORTATION OF GOODS SO THAT
HE WILL FILE THE REQUIRED DOCUMENTS TO THE
CUSTOMS OFFICIALS TO CLEAR THE MERCHANDISE.
EXPORT DOCUMENTATION
 PROFORMA INVOICE – ISSUED BY THE SELLER

 COMMERCIAL INVOICE – ISSUED BY THE BUYER

 BILL OF LADING- A CONTRACT OF SERVICE RENDERED BY THE

CARRIER OF THE FREIGHT

 CERTIFICATE OF ORIGIN- ISSUED BY THE CHAMBER OF

COMMERCE TO DETERMINE TH E TARRIFF SCHEDULE FOR
IMPORTS

 EXPORT PACKING LIST-INDICATES THE QUANTITY LOT SIZE,

MARKINGS ETC… RELATED TO THE PRODUCT EXPORTED.
CASHEW PROCESSING WORK
STRUCTURE
PROCURING
PROCURING OF
OF RAW
NUTS
NUTS THROUGH
THROUGH
RAW
WAREHO DRYING OF
IMPORT
IMPORT OR
OR LOCAL
LOCAL
PURCHASE
PURCHASE USING THE NUTS

SHELLING OR
ROASTING OF
CUTTING OF THE
OUTER SHELL DRIED NUTS

BORMA PEELING OF THE GRADING

GRADING
ACCORDING TO
ACCORDING TO
HEATING AND TESTA OR THE STANDARD
STANDARD
COOLING OUTER SKIN SPECIFCATIONS
SPECIFCATIONS

GAS INFUSION REWORKING &

AND FLEXI QUALITY
PACKING ANALYSIS

QUALITY
QUALITY EXPORTING OR
INSPECTION BY
INSPECTION BY
SURVEY
SURVEY AGENCIES
AGENCIES
LOCAL SALE
PROCURING OF RAW NUTS
 IN
TODAYS TIMES IT IS VERY DIFFICULT TO ATTAIN
THE RAW NUTS FOR THE INDUSTRY SO WHAT
COMPANIES DO IS THAT THEY BUY OR PURCHASE
ALL THE AVAILABLE NUTS USING ALL FINANCIAL
ASSISTANCE FROM BANK AS WELL AS FROM THERE
OWN POCKETS DURING THE SEASON TIME AND
STORE IT FOR FUTURE USE.

 MAJOR RAW CASHEW NUT PRODUCING COUNTRIES

THROUGHOUT THE YEAR ARE LOCATED MOSTLY IN
THE AFRICAN CONTINENT.
RAW CASHEWNUT EXPORTING
COUNTRIES

GUINEA BISSAU, IVORY COAST, BENIN,

MOZAMBIQUE , TANZANIA, GUINEA, GHANA,
MADAGASCAR ETC…..

IT IS ALSO AVAILABLE LOCALLY FROM PLACES IN

KERALA LIKE MALLAPURAM, KANNUR,
CALICUT, PERINTHALMANNA, ALUVA ETC….
BUT THEY ARE AVAILABLE ONLY DURING
SEASON TIMES WHICH STARTS FROM EARLY
MARCH TO MID AUGUST.
QUALITY ASSESSMENT OF
IMPORTED NUTS
 THE CONTRACT BETWEEN THE BUYER AND
SELLER REVEALS THE OUTTURN FOR THE
GOODS PURCHASED.
 THE LANDED GOODS SHOULD STAND TO
THE WORDS COMMITTED IN THE CONTRACT,
IF ANY THING FALLS BEHIND-THE SELLER HAS
TO GIVE CLAIM FOR SHORT COMINGS TO THE
BUYER AFTER DETAILED ASSESSMENT BY
THE ASSESSING AUTHORUTY.
 PRODUCTS

 BESIDES THE CASHEWNUTS, CASHEW

SHELL, RAW CASHEWNUT OIL, CASHEW
SKIN AND EVEN THE REJECTION KERNELS
POSE HUGE DEMAND IN THE MARKET.
 VALUE ADDED PRODUCTS LIKE CASHEW
POWDER, CASHEW SOUP, CASHEW
DELITES, ROASTED AND SALTED CASHEWS
ARE ALSO SOLD IN THE MARKET LIKE HOT
CAKES.
 GRADE CHART

WW180 SW 180 SPLITS DP

WW210 SW240 BUTTS SSW
WW240 SW320 PIECES SSB
WW320 SW360 SS SSP
WW450 DW SB
SP
 WW-WHITE WHOLES
 SW- SCORCHED WHOLES
 DW-DESERT PIECES
 SSW- SCORCHED SECOND WHOLES
 SSP-SCORCHED SECOND PIECES
 SSB-SCORCHED SECOND BUTTS
Quality measurement basis by CEPC
specifications
FOR QUALITY ANALYSIS THE SURVEY AGENCY TAKES
A RANDOM SAMPLE OF 1 POUND (454 GMS) FOR THE FOLLOWING
TEST FROM THE TOTAL LOT QUANTITY OF GOODS ASSIGNED TO BE
EXPORTED
 COUNT
 COLOUR
 INFESTATION FREE
 MICROBIOLOGICAL ANALYSIS( FOR SALMONELLA AND COLI)
 AFLOTOXIN
 AQSS ( AMERICAN QUALITY STANDARD SPECIFICATION).
 OXYGEN CONTENT
 CO2 & N2 CONTENT
 MOISTURE TEST
 BROKENS AND NLG TEST
 CERTIFICATE FOR WEIGHT AND QUALITY
 FUMIGATION AND GAS FREE.
IMPORTANT TERMS IN
INTERNATIONAL TRADING
 FOB = FREE ON BOARD
 CIF= CARRIAGE INSURANCE FREIGHT
 CNF= CARRIAGE & FREIGHT
 LC= LETTER OF CREDIT
 CAD= CASH AGAINST DOCUMENTS
 FDA REGN= FOOD AND DRUG
ADMINISTRATION REGISTRATION
 LBS = POUNDS
 IRREVOCABLE LC
THANK YOU