Course Outline

International Trade
Operations
and Documentations
Total Hours: 40 Credits: 4

Course Coordinator
Dr Deepankar Sinha
Professor

Indian institute of Foreign Trade

Kolkata Campus
Introduction

International Trade Operations is the core to successful global business and generally is referred as
soul of foreign trade. Unlike in domestic business, a global firm has to not only affirm know-your-
customer (KYC), but also focus on know-your-customers’-country (KYCC). The business in-
country is influenced primarily by its internal environment and less by the factors from the external
world. The scenario is reverse for international business. Thus, one needs to ponder on know-your-
trade (KYT). For example, the profitability from a sale of an item depends not only on the profit
margin but also from the foreign exchange rate fluctuations. Foreign trade is dynamic and greatly
uncertain. Factors are numerous and cross-influencing each other. Thus, the risk is very high.

A seller and a buyer, to and from overseas markets respectively, face the risk of rejection, loss and
customer dissatisfaction.

Objectives

The overall objective of this course is to develop a framework to maximize customer satisfaction
and minimize risk. The specific objectives of the course is to:

i. Understand the dimensions and factors influencing international trade.

ii. Understand the risks involved in global business operations

iii. Understand the global guidelines, agreements, harmonised codes and methods, standardized
documents and processes.
iv. Understand the processes & procedures of exports-imports in India
v. Understand the stakeholders, commercial and regulatory bodies and documentations.

vi. To develop a framework for successfully carrying international trade operations (ITO-F)

Learning Goals (LG)

LEARNING GOAL 1 [LG 1]: International Perspective in Decision Making

LO 1.1: Able to identify key “social /political /economic and other factors” in the international
business environment and develop an ability to integrate international perspectives in decision
making

Pedagogy

The teaching methodology will involve case studies, classroom interaction, industry interface
and project work /assignment.
Evaluation

S.
Components Weightage (%)
No.
At least three quizzes will be held.
Best of the two will be considered.
Any one missing one quiz will be
evaluated with one quiz only.
Any missing both the quizzes will be
Quizzes (Multiple Choice &
1 20 marked ZERO. No additional or
Open Ended)
supplementary quiz or any other
evaluation will be done.
For more than 3 quizzes, Faculty may
consider other options as per total-
marks per quiz.
This is off-class assignment – to be
submitted in PPT mode with .ppt file
Any form of plagiarism is not
2 Project / Exercises 10
accepted and will be marked ZERO
Plagiarism will be tested using
Turnitin Software
Multiple – choice and or One word
3 Mid-Term Exam 30
and or Short answer questions.
If Online: Multiple – choice and or
One word and or Short answer
questions. Else
4 End Term Test 40
One word and or Short answer
questions - direct and or based on case
studies
Total 100

Course Work Items

 Practical Exercise
 Case Analysis / Case lets
 Project Study

Course Coordinator: Dr. Deepankar Sinha, Professor (15 hours + GF: 15 hours)

Room no: 6

eMail: dsinha@iift.edu
 Course Content

Contents Hours
1. Perspectives of international trade operations – KYC*, KYCC** and KYT ***: 2
a. Case Study: Exports of shrimps
b. Case study: Import of Rose Assignment
/Quiz 1
KYC*: Know Your Customer (Buyer),
KYCC**: Know Your Customer’ Country and
KYT ***: Know Your Trade
2. Harmonisation & Standardisations – Global Bodies; World Conventions and 1
Agreements:
a. ICC
b. WTO – TFA
c. UNICITRAL
d. Other relevant conventions
3. Shipment and Terms of Trade - INCO terms 2020: 3
a. What Are Incoterms? Purpose, Scope and perspectives of INCO Terms; Need
for Revisions of Incoterms ; Various Categories of Incoterms; Applicable
Incoterms In Different Modes Of Transportation; Incoterms And Transfer Of
Risks; Choosing an Incoterms. Assignment
/Quiz 2
b. Documents associated with INCO terms
c. Choice of INCO Term: Risk – Market Power Framework
4. Stages in global shipment - Export and Import Cycle: 6
a. Stages, stakeholders in each stage and documents in every stage
b. Regulatory Requirement For Getting Started in Trade Operations; India’s Assignment
Foreign Trade Vision- Issues and Challenges /Quiz 3
c. Customs Process
d. Freight Forwarding Practices
5. Compliances, evidences and claims - Documentation for Trade Operations: 2
a. Why Logsitics Documentation Is Important;
b. Various Aspects of Trade Documentation;
c. The Major Documents Used In International Trade Logistics;
d. Transport Documents; Financial Documents; Regulatory Documents
6. Managing payments and receipts- Introduction to Methods of Payments: 3
a. Various Methods of Payments
b. Cash in Advance; Letter of Credit; Documentary collections; Open Account; Assignment
Other Payment Mechanisms /Quiz 4
7. Risk Mitigation Approaches 2
a. Risk Mitigation Framework
b. Credit Insurance Policies of ECGC ; Maturity Factoring By ECGC; Assignment
Guarantees To Banks; Special Schemes of ECGC /Quiz 5
c. Marine and Air Cargo Insurance
8. Leverage global business – Export and Import Incentives: 2
a. Advance Licenses and Authorizations
b. Duty Drawback & Claims Procedure;
c. SEZ and Customs Bonded Warehouse & manufacturing
9. Managing International Contracts 2
a. Terms & conditions
b. Standard forms of global contracts
10. A. Analysing International Trade Operations: Data Analytics & Use of 2
Technology in

a. Important Links
b. Global indices Project –
c. EDI systems Completed
d. Future technologies

B. The ITOD Framework

a. The check list

b. Global Business Rules

11. Managing Global Sourcing 15

 Study material

1. Book:

Amazon Kindle e-book: A Professional's Guide to International Trade Operations, Bills

of Lading and Payment Methods.
By Rajiv Sathe
2. Reference materials

3. Study notes
 Knowledge and Understanding

By the end of this course, students will be able to:

 To understand the various regulatory formalities which the firm has to complete for
getting started in international trade & Logistics Operations.
 To understand the documentary aspects of an export import transaction for logistics
operations.
 To successfully execute the export import transactions by successfully taking care of
payments realisation challenges in international trade logistics.
 To understand and appraise the importance of various trade facilitating bodies in
international trade.
To avail the various benefits which are given by Government of India to Indian exporters under
various schemes?

Project: Development of the ITOD Framework

1. Identify your HS code –

 For roll numbers 1 to 99 the 2 digits of your roll number is your assigned chapter
code. Any consecutive 2 digits between 01 to 09 is the 4-digit code
 For roll numbers 100 and above the last 2 digits of your roll number is your
assigned chapter code – Any consecutive 2 digits starting with 10 or above is the 4-
digit code
 All analysis will be done using at least 6 -digit HS code

AOL Evaluation

Learning Goal (LG -1): International Perspective in Decision Making & Complex Biz Situation

Learning Objective (LO -1.1): Able to identify key “social /political /economic and other factors” in the
international business environment and develop an ability to integrate international perspectives in
decision making.

Evaluation Component to be used for AOL: Assignments, Project, Exercises, Case and Presentations

Rubrics to be used for evaluation:-

Learning Objective Excellent Good Fair Unsatisfactory

Able to clearly
Able to identify key Able to clearly Able to identify Unable to correctly
identify most of
“social / political / identify all the only few of the identify even a few of
the critical and
economic and other critical and relevant critical and relevant the critical and
relevant social,
factors” in the social, political, social, political, relevant social,
political, economic
international business economic or other economic or other political, economic or
or other factors, in
environment and factors in the factors, in the other factors in the
the international
develop an ability to international international international
environment, for a
integrate international environment, for a environment, for a environment, for the
business decision
perspectives in business decision in business decision in business decision in
in the given
decision making. the given context. the given context. the given context.
context.
Stage 1

Q.1. Choose the HS code and product.

Ans: Write :

Chapter No Description

4 – Digit Description

6 – Digit Description

8 – Digit Description

10 – Digit Description

Q.2. Classify the item: General / Restrictive / Prohibitive

8 Digit HS Code Item Type

Q.3. List the PGAs associated with your HS code

Stage 2

HS code:

Q.1. Identify the following Duty if imported to India:

DUTY IMPORTED FROM

CHINA USA SAARC

 COUNTRY

Basic Customs Duty

MFN Duty

FTA Duty

ANTI-DUMPING

Compensation cess

Q.2. Identify the document required to substantiate preferential duty

FTA Document Issuing Authority Any Restrictions

SAFTA

ASEAN

INDO-
SRILANKA
BILATERAL
TRADE
AGREEMENT

Stage 3

HS code:

Q.1. Identify the regulatory & commercial Documents for Export and Import from
& to India and their purpose.

Ans:

Export:
Regulatory: Commercial:

Import:

Regulatory: Commercial:

Stage 4

HS code:

Q.1. Choose a country where you export your product. Recommend a Transit
Insurance Policy with reason.

Ans:
MODE OF TYPE OF POLICY REASONS COST
TRANSPORT IMPLICATIONS

Q.2. Illustrate 5 Risks an exporter will face with respect to the country where you
are exporting

Ans:

Stage 5

HS code:

Q.1. What is the role of DGFT in

I. Pre export shipment

II. Post export shipment

III. Import of materials

Q.2. What are 3 or more ways to minimize import duties or defer payment of
import duties:

I. ____________________

II. ___________________

III.___________________