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GLOBAL BUSINESS

SOLUTIONS

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Module 4: Shipping, Logistics & Others?

 Who is CHA and C&F and how they can help me in export business?
 Which are the major export documentations?
 What are trans-shipment and partial shipments?
 What is marine insurance? How to avail it?
 What is ECGC (product insurance)? How to avail it?
 How to plan a foreign country visit for export business?
 How do I know the certifications requirements in foreign country?
 How to prepare a prospects` database and how it helps me?
 What is the importance of digital marketing in my export business?
 How to decide upon my export budget?
Who is CHA / C&F agents and how
they can help me in export business?

 Transportation of goods to docks and arrange warehousing at port.


 Warehousing centers before the products are transported to docks.
 Custom clearance of cargo at the Indian port.
 Negotiate freight rates with the shipping line.
 Reserving of shipping space or air freighting and recommendation on
relative value of sending items by means of sea and air.
 Arrangement for loading of goods on board.
 Equipped with data on delivery traces and freight to distinct locations,
and diverse costs payable with the aid of exporters.
 process all relevant shipping documents such as certificates of origin,
customs and port documentation, bills of lading and associated
shipping/negotiating documentation
 Obtaining marine coverage policies.
 Forwarding of banking collection papers.
Which are the major export
documentations?

 Commercial Invoice / Packing List - Exporter


 Country of Origin or COO Certificate – Local Chamber of Commerce
 Shipping Bill - CHA
 Bill of Lading - Carrier or their agent
 Insurance certificate – Insurance Company
 Quality certificates e.g. Phyto-sanitary certificates and fumigation
certificates – Inspection agencies
What are trans-shipment and
partial shipments?

Trans-shipment:
 The shipment of off-loading of goods from one location and loading to another
(or one country to another) and from one carrier to another by mode of air, sea,
road, either of two, or of all.
 When the distance of movement of goods from one place to another is very far,
the single service of one carrier to move goods from the origin to final
destination may not be possible in most of the cases.
 If a shipment is on less container load (LCL) basis, a trans-shipment is effected
for the purpose of consolidation by dividing large shipment to small and small
shipments to large.

Partial Shipment?
Partial shipment is the delivery of an order in more than one shipment. It means,
when a buyer orders goods, all the goods are not shipped at once, rather they are
sent to the buyer in parts. To make a partial shipment, it must be agreed upon by
the buyer in a letter of credit.
What is marine insurance?
How to avail it?

 The term cargo insurance, popularly known as marine insurance, applies


to all modes of transportation – rail, road, air & water.

 Marine insurance covers goods from the moment they leave the sellers
warehouse until they arrive at the buyers warehouse. In other words,
the cover is from warehouse to warehouse, not just port of loading to
port of discharge.

 The seller is obligated to insure the cargo in the CIF and CIP terms.

 In case of FOB terms, it is the Buyers` / Importers responsibility to


insure the goods.
What is ECGC (product insurance)?
How to avail it?

ECGC Ltd. (Export Credit Guarantee Corporation of India Ltd.) wholly owned by
Government of India, was set up in 1957 with the objective of promoting exports
from he country by providing credit risk insurance and related services for exports.
Insurance cover guaranteed will cover up to 90% of the principal and interest.
ECGC classifies the countries into 7 categories on basis of risks perceived.

A1-Insignificant Risk
A2-Low Risk
B1-Moderately Low Risk
B2-Moderate Risk
C1-Moderately High Risk
C2-High Risk
D-Very High Risk https://www.ecgc.in/english/
How to plan a foreign country visit for
export business?

 Select the target market on basis of Exim statistics.


 Initiate correspondences by email, product details, quotation and samples.
Also build up rapport and nurture relationship before visiting.
 Prepare a prospects` database and filter the prospects with mutual
interests.
 Take prior appointment at least a month prior to the visit.
 Carry samples if possible during the visit.
 Keep all information about techno commercial aspects.
 Search for any trade fairs & exhibitions in the country and club with your
visit.
 Plan a country visit on basis of the export budget.
 Plan a country visit such that you cover more than 1 region i.e. 2-3
countries each in Middle East, Africa, South East Asia etc.
How do I know the certifications
requirements in foreign country?

 Products may need to be modified to comply with local regulations.


 Labeling or packing requirements may be different; requiring local language,
or detailed information on composition, ingredients or materials used.
 Products may need to be inspected or approved before they can be sold.
How do you know about the regulations and certifications?

 Asking the importers / buyers about any special requirement / regulations.


 Requesting Indian Embassy in the target country about the product
regulations.
 Requesting Export Promotion Councils and Commodity Boards.

These requirements need to be researched before you enter a market, as the cost
of compliance may affect the sales price of your product, or the cost and
profitability of your goods in that market.
What products are likely to be regulated?

 Food, drink & alcohol products


 Goods coming into contact with foodstuffs (tableware, containers,
packaging)
 Pharmaceutical and drug products
 Cosmetic products
 Clothing (especially children’s clothing)
 Textile products and furnishings
 Toys
 Electrical devices
 Medical devices and equipment
How to prepare a prospects` database
and how it helps me?

MIDDLE EAST PROSPECTS


NO. PROSPECT CONTACT DETAILS BUSINESS STATUS
OMAN
Email Sent on 18/06. Shown interest
Address : . P.O.Box 1994, P.C. 114, Muttrah Sultanate of Oman
Safety House LLC AGENT FOR EMH CRANE / SILVERLINE in dealership. Reminded him on
1 Ajit Panicker : 00968 95220735
PRODUCTS & SERVICES CRANE 24/06. Reminded him on 09/07.
Email ID : info@safetyhouseoman.com /
NOT INTERESTED
safetyhouseoman@gmail.com
Received Inquiry on whatsapp.
P.O Box – 123385 | Dubai | United Arab Emiates Dealers of YALE hoists and EMH / Quotation sent on 24/06. Raised
2 QMH
Email : sales@qmhuae.com Mobile : +971 55 849 0354 CHESTER Hoists Queries on 17/07 which we need to
address. ORDER AWAITED

How Database Helps:


 One can know the status / updates regularly.
 One can prepare database for all the prospects in all the target countries in 1 file.
 Regular follow ups becomes easy and simple.
What is the importance of
digital marketing in my export business?

Digital marketing is reaching out to and engaging with your customers through
Email, Mobile and Internet.

Digital Marketing includes SEO and SMM, including email and


other digital promotions that makes brand easily visible to the market.
It can be achieved in the following ways.
 Choose a domain name
 Get a hosting plan
 Design the pages
 Publish the website
 Search Engine Optimization
 Online listing
 Online advertising
 Brand partnerships and promotion
 Email marketing
How to decide upon my export budget?

Sales Turnover @ 1,00,00,000


BUDGET DESCRIPTION @ 2% of the Total Turnover INR
Website 10,000
RCMC 10,000
Product Certifications (ISO) OR Country specific requirement 50,000
SEO 35,000
EXIM Data from private firms (1 year data with Importer name) 30,000
Trade Fairs (company`s booth) -
Country Visits (U.A.E., Nepal, Sri Lanka, Bangladesh for 5 days) 50,000
EPC Registration -
Online Marketing (Alibaba) -
Recruitment staff -
Marketing Material (Brochures, flyers etc.) 10,000
Samples of the product (courier / samples charges) 5,000
TOTAL 2,00,000
हम सबने ठाना है , भारत को आत्म�नभर बनाना है .

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