MODULE-

1INTRODUCTI
ONTOEXPORTMARKETI
NG
Wedef i
ne“Expor
tMar ket
inginv
olv
esmar keti
ngofgoods&serv
icesbey
ondnati
onal
boundar
ies”
R.LKramerdefi
nes“Exportmarket
inginvolvesexpor
tbusi
nesswit
hindi
vi
dual
s,f
ir
ms,or
ganizat
ions
and/orgov
t.enti
ti
esinothercount
ries”
.
FEATURES:

(
1) Lar
gescal
eoper
ati
ons

(
2) I
tisapr
ocess

(
3) Mar
ket
ingofgoodsandser
vices.

(
4) I
dent
if
icat
ion&Sat
isf
act
ionofNeeds&want
s

(
5) Thr
ee-
facedcompet
it
ion

(
6) ExchangeRegul
ati
on

(
7) Domi
nanceofMNC’
s

(
8) Tar
if
fandNon-
Tar
if
fbar
ri
ers

(
9) Rul
esandr
egul
ati
ons(
rest
ri
cti
ons)

(
10) I
nter
nat
ional
for
ums

(
11) Pr
esenceoft
radi
ngbl
ocks

(
12) Spr
eadi
ngofRi
sk

[
LIMI
TEDTRI
PS]
NeedandI
mpor
tanceofExpor
tMar
ket
ing

(
A) Fr
om t
hev
iewpoi
ntofnat
ion

i
. For
eignExchange

i
i
. I
nter
nat
ional
Rel
ati
ons

i
i
i. Bal
anceofPay
ment
s

i
v. Reput
ati
oni
nthewor
ld

v
. Empl
oymentoppor
tuni
ti
es

v
i. Resear
chandDev
elopment

v
ii
. Opt
imum Ut
il
isat
ionofResour
ces

v
ii
i. Spr
eadEf
fect

i
x. Hi
ghSt
andar
dofLi
vi
ng

[
FIBREROSH]

(
B) Fr
om v
iewpoi
ntofbusi
nessor
gani
zat
ion

i
. Reput
ati
on

i
i
. Opt
imum pr
oduct
ion
i
i
i. Spr
eadi
ngofRi
sk

i
v. Expor
tObl
i
gat
ions

v
. Keepi
ngal
i
veol
dpr
oduct
s

v
i. I
mpr
ovementi
nor
gani
zat
ional
eff
ici
ency

v
ii
. I
mpr
ovementi
npr
oductst
andar
ds

v
ii
i. Li
ber
ali
mpor
ts

[
ROSEKI
IL]

Di
sti
ngui
shBet
weenExpor
t&Domest
icMar
ket
ing

1.Meani
ng

2.Ex
changeofgoods

3.Languages/cul
tur
e

4.Tr
anspor
tat
ioncost

5.Cur
renci
es

6.Ri
sk&uncer
tai
nti
es

7.I
nfl
uenceofgov
ernment

8.Spr
eadi
ngofRi
sk

9.Pr
ocedur
es

10.
Compet
it
ion

11.
Real
i
sat
ionofsal
espr
oceeds

12.
Impactoft
radi
ngbl
ocs

13.
Scal
eofoper
ati
on

14.
Pay
mentmet
hods

[
MELTCRI
SPCRI
SP]

MOTI
VATI
ONSFOREXPORTMARKETI
NG

I
. FI
RM –SPECI
FICFACTORS:

i
) Pr
ofi
t

i
i
) Pr
oductdev
elopmentcost

i
i
i) Pr
oductl
i
feconsi
der
ati
ons

i
v) Pr
oductSt
rat
egi
cvi
sion
 v
) Pr
oductst
abi
l
ity

v
i) PowerofMonopol
y

P6

I
I. EXTERNALENVI
RONMENTFACTORS

i
) Compet
it
ioni
nDomest
icMar
ket

i
i
) I
nfor
mat
ionandMedi
aRev
olut
ion

i
i
i) Domest
icMar
ketConst
rai
nts.

i
v) WTO

v
) I
nter
vent
ionofGov
ernmentPol
i
cies

v
i) Fr
eet
radeagr
eement
s

v
ii
) Economi
cgr
owt
h

CI
DWI
FE

Prospect
sofExpor tMar ketingi nIndi a
• Strongandst ablegov er nment
• Positiveeconomi cpol icies
• Declinei neffectsofr ecessi on
Chall
engesinExpor tMar ketingi nI ndia
• Mat chingneedsofgl obalconsumer s
• Achiev i
nggl obalcompet itiveness
• Limitedi mpor t
ancet oexpor t
sofservices
• Limitedat t
ent i
ont oadv er ti
singandsal espr omoti
on
• Poorcont r
ibutionofagr icultureandalliedpr oduct
s
• Impactofgl obalisation
• Challengesr elatedt oi nfr ast r
uctur
efaci l
it
ies
• SocialResponsi bili
tyandet hicsofcorpor ates(CSR)
• Mar ketingthroughnewt echnol ogi
es
• Relationshipmar keting
• Problemscr eatedbyt r adi ngBl ocs
MALLPI CSMRP

FOREI
GNTRADEPOLI CY
Thegov ernmentofI ndiai ntroducest heExport
-I
mportPoli
cy,
normallyforaperi
odoffi
vey
ears.The
EXIM policypr ovidesal i
stofi nit
iativesandprocedur
algui
del
inesforexport
ersandi
mport
ers.I
n2004,
theGover nmentofI ndiar enamedt heEXIM poli
cyasForei
gnTradePolicy.
OBJECTI VESOFEXI M POLI CYOFI NDIA
1.St rengthenExpor tPr oduction.
2.St reaml ineProcedur es.
3.Techni calUpgr adat i
on.
4.Impor tSubst i
tuti
on.
5.Empl oy mentGener at i
on.
6.Expor tincentiv
es.
7.St andar dsofQual i
t y
.
8.Fr amewor kforGl obal i
sat
ion.
HI
GHLIGHTSANDI MPLI CATIONSOFFTP2015- 20
A.SI MPLI FICATI ON&MERGEROFREWARDSCHEMES
1.MEI S-
Mer chandi seExpor tsfrom IndianScheme.
Earli
ertherewer e5di f
ferentschemes( FocusProductScheme,MarketLi
nkedFocusProduct
Scheme, FocusMar ketScheme, Agri.Infr
astr
uctureI
ncenti
veScri
p,VKGUY)
2.SEIS-ServiceExpor t
sfrom IndianScheme.
3.Incenti
vesofMEI S&SEI S.–gi vent oSEZs
4.Dutycreditscripst obef reel
yt r
ansf erableandusableforpaymentofcustom duty
,exci
sedut
y
andser vi
cet ax.
5.StatusHol ders
B.BOOSTTO" MAKEI NINDI A"
6.ReducedExpor tObl i
gati
on
7.Higherlevelofr ewar dsunderMEI Sf orexporti
temswi t
hhighdomest i
ccontentandval
ue
additi
on.

C.TRADEFACI LITATI ON&EASEOFDOI NGBUSI

NESS
8.Onli
nefil
li
ngofDocument s.
9.Onli
neinter–ministeri
alconsul
tat
ions.
10.
Simpli
fi
cati
onofpr ocedures.
11.
E-Gover
nanceIni
tiati
ves

D.OthernewI nit
iatives
12.Newi nit
iativesforEOUs, EHTPs, STP.
13.E-Commer ceexpor ts
14.Facil
i
tating&Encour agingExpor tofdualusei t
ems
15.DutyExempt ion.
16.DFTP- Dut yFreeTar iffPr efer
enceScheme- preferencet
o33LeastDev
eloped
Countri
es(LDCs) acrosst he globe.
17.Additional portall
owedf orimpor t
s&expor ts.
18.QualityCompl ai
nt s&Tr adedi sputes.
19.Vishakhapat nam &Bhi mav aram ( AP)addedasTownofExcel l
ence.
20.Facili
tat
ing&Encour agingexpor tofDef enceexpor t
s

STATUSHOLDERS
NewsSt atus Exportper
for
mance(
FOBbasi
s)i
nmi
ll
ions
One St
a r Expor
thouse $.3
TwoSt arExpor thouse $.25
ThreeSt arExporthouse $.100
FourStarExpor thouse $500
FieSt
v arExpor thouse $2000

NEGATI
VELI STOFEXPORTS: Negat
ivel
i
stofexpor
tscont
ainst
hosei
temswhi
char
eei
therbannedorcannotbe
f
reel
yexpor
ted.Thenegat
ivel
i
stofexpor
tconsi
stsoft
hesepart
s:

PART-1-PROHOBI TEDI TEMS: Theprohi

bit
edit
emsar ebannedf
rom expor
ti
ng.Thel
atestl
i
stofpr
ohi
bit
edi
tems
ason1.1.1996cont ai
ns10i tems.Theitemsare:
1.All f
ormsofwi l
dani mals.
2.Ex oti
cBirds.
3.All i
temsofpl ants.
4.HumanSkel et
ons.
5.Tal l
ow,fat,and/oroilsofanyanimal’
sori
gin.
6.Chemi calsasnot if
iedbyDGFT.
7.Sandal woodi t
emsasnot if
iedbyDGFT.
8.Redsander swoodi nanyf orm.

PART-
2-RESTRI
CTEDI
TEMS:Rest
ri
ctedi
temsar
eal
l
owedt
obeexpor
tedonl
ywi
thspeci
all
i
censi
ngbyt
heDGFT.
Atpresent,t
herear e31i t
ems.Someofr estr
ict
edi t
emsex por
tedar
easf ol
l
ows:
1.Cat tl
e.
2.Camel .
3.Chemi calferti
li
zer
sandMi cronutri
entferti
li
zers.
4.Fabr i
cs/ Textil
esit
emswi thi
mpr intsofexcer pt
sorv er
sesoftheHolyQur
an.
5.Deoi l
edGr oundnutcakes.
6.Fr eshandFr ozensil
verpomfretsofwei ghtlessthan300grams.
7.Fodder ,includingwheatandr i
cest r
aw.
8.Hi desandSki nsasment i
onedint hepolicy.

PART- 3-CANALI SEDITEMS: Thelistcontainsthoseitemswhi charetobeexpor t

edonlythr
oughdesi
gnat
ed
canalizedagenci es.Atpresentthereare5i temswhi char ecanali
sed.Theyare:
I
TEMS CANALI SINGAGENCY
1.Petroleum products I
ndianOi lcorp.Ltd.
2.Gum Kar aya TheTribal Cooperat
iveMar ket
ingFederat
ionfIndiaLt
d.(
TRIFED)
3.Micawast eandScar p MMTCandMI TCO
4.Mineral oresand I
ndianRar eEar t
hsltd,Keral
ami neral
s&met al
sLtd.MMTCandMOI L
Concent rates
5.NigarSeeds. NAFED, TRI FEDand2ot hers.

ExportIncent
ives,Assist anceAndSchemesext endedt oIndi
anExporter
s
1.DBK:Al lindustriesr ates,
Speci alBrandsr ates,bygovt.butspeci
alapp
2.EPCG
3.Mar ketDevelopmentAssi st ance:25%t o60%Eh/ TH/STH/SSTH:Mar ketsur
vey
sadv
.
Showroom
4.Mar ketAccessI ni ti
ati
ve(MAI ):Mar ketst udy,R&Det c.
5.ASI DE
6.IMRACScheme
7.Ot herf
inancialbenef it
s:Fr eight,rebate,etc.
8.Exempt ionfrom exci seduty
9.Exempt ionfrom I ncomet axdut y:underSec80HHC
10.Exemptionfrom Sal esTax
1. DUTYDRAWBACK( DBK)
DBKmeansr efundofCust om dut i
espai dont hei mpor tofr awmat er i
alscomponent sandpacki ngmat eri
al.DBK
al
soi nv
ol vesrefundofcent r
alex cisedut i
espaidoni ndigenousmat eri
alusedi nthemanuf actureofexpor t
products.
Drawbacki savailabl eont hefollowi ngitems:
a)Rawmat erial sandcomponent susedi nthepr ocessofmanuf acture.
b)Mat er
ial
susedi nthemanuf actur
eofr awmat er
ialsandcomponent susedint hemanuf actur
eoff i
nished
pr oducts.
c) Irrecoverabl ewast ageswhi char i
sesinthepr ocessofmanuf acturing.
d)Mat er
ialusedf orpackingt hef ini
shedexpor tproduct s.
e) Finishedpr oduct s.
DBKi snotadmi ssi bleifthe:
a)Amountofdr awbackent it
lementi slesst hanRS.50/ -.
b)Goodshav ebeent akeni ntouseaf t
ermanuf acture, exceptteachestusedaspacki ngmat eri
alsforexport
ofbl endedt ea.
c) Goodsar epr oducedusi ngi mpor tedmat erialsorex cisablemat erialsi
nr espectofwhichdut i
eshav enot
beenpai d.
d)Pr oductsmanuf actur
edby100%EOUsanduni t
slocat edinFTZs/ EPZs.
e) Amountofdr awbackislesst han2%ofnetFOBv alueofex por t
s.
f) Goodsex por tedtoNepal ,Bhut an,TibetandSi ng–ki ang.
RatesofDr awback:
Therear etwor atesofdut ydrawback:
a)Al li
ndust ryr ates
 Theseratesareapplicabl
etoalluni
tsint
heindust
ry.Forexample,
ift
hegov
ernmentdecl
ares20%DBK
fort
ex t
il
esthenallunitsi
nthetexti
l
eindust
rycanget20%DBK>
b)Speci albr
andrates
Theseratesareprovidedbythegov er
nmentonthespecialappl
i
cati
onmadebyaparti
cul
arunit
.
Pr
oceduretoClaim DBK:

Whom t
oAppl
y:Theappl
i
cat
ionneedt
obemadet
othenear
estcust
omshouse.

WhentoAppl
y:Appl
i
cat
ionmustbemadewi
thi
naper
iodof60day
sfr
om t
hedat
eofobt
aini
ng“
LetExpor
tOr
der
”
f
rom t
hecust
omsexami
ner.

Whatdocumentsr
equired:Theappl icat i
onmustbesuppor
tedbyt
hef
oll
owi
ngdocument
s.
a)Non–negot i
ablecopybi ll
ofl ading
b)Acopyofdut ydr awback.
c) Acopyofcommer ci
ali
nvoice.
d)Acopyofspeci al brandrateletter,
ifr
equi
red.
e) Otherr
equi
reddocument s.

2.EXPORTPROMOTI
ONCAPI
TALGOODS(
EPCG)SCHEME–

Capi
talgoods(CG) ,
bothnewandsecondhands, maybeimpor t
edundert
heEPCGscheme.Capitalgoods
(i
ncl
udingsparesupt o20%oft heCIFv
alueoft
hecapitalgoods)
,maybeimport
edataconcessi
onalrat
eof3%
cust
omsdut yorz er
odutysubjecttoExpor
tobl
i
gati
on( EO)tobeful
fi
ll
edoveraper
iodoft
ime.Thezeroduty
i
mpor tofcapi
talgoodsunderEPCGschemei sconti
nuedunderFTP2015-20.

Exportobligati
onunderEPCGscheme.
Theexpor tobligationundertheEPCGschemehasbeenmodi f
iedasperFTP2009- 14.Capi
talgoodsi ncl
uding
goodsspar esaswel lascomput ersystemscanbei mport
edat3%cust omsdut yorzerodutysubjectt oanex por
t
obl
igati
onasf oll
ows.
a)8t imesofdut ysavedoncapi talgoodsimpor t
edtobeful
fil
ledov eraperiodof8y earsstart
ingf r
om the
issuedat eofEPCGl icenseincaseof3%dut yand6timesov eraper i
odof6y ear
sincaseofz eroduty.
b)EPCGl icenseswi t
haCI Fv al
ueof ’100croreormore,t
hesameex por
tobligati
onshallberequiredtobe
fulfil
ledov eraperiodof12y earsinsteadof8y ear
s.
c) Uni tsinagr i–exportzonesandcompani esundertherev
ivalplanofBI FRcanf ul
fi
llt
heex portobli
gati
on
ov eraper iodof12y earsinsteadof8y ears.

3.Mar
ket
ingDev
elopmentAssi
stance(
MDA)

TheMar ket
ingDevel
opmentAssi
stance(
MDA)Schemeisi
ntendedtoprovi
def i
nanci
alassi
stancef
orarange
ofexportpr
omot i
onact
ivi
ti
esi
mplementedbyexpor
tpr
omotioncounci
ls,
industr
yandtradeassoci
ati
onsona
regul
arbasisever
yyear
.

Aspertherevi
sedMDAgui del
ineswit
hef
fectf
rom 1stApr
il
,2004assi
stanceunderMDAi
sav
ail
abl
efor
expor
terswit
hannualexportt
urnov
erupt
oRs5cr ores.

Thesei
ncl
udepar
ti
cipat
ioni
nTr
adeFai
rsandBuy
erSel
l
ermeet
sabr
oadori
nIndi
a,expor
tpr
omot
ionsemi
nar
s,
et
c

Furt
her
,assi
stanceforpar
ti
cipat
ioninTradeFair
sabroadandtrav
elgr
antisavai
labl
etosuchexport
ersift
hey
tr
avelt
ocountri
esinoneofthefiveFocusAreas,suchas,Lat
inAmeri
ca,Afr
ica,
ASEANcountri
es,Austr
ali
a
andNewZealand.

Forpar
ti
cipat
ioni
ntr
adef
air
s,et
c,i
not
herar
easf
inanci
alassi
stancewi
thoutt
rav
elgr
anti
sav
ail
abl
e.

4.MARKETACCESSI
NITI
ATI
VE
Act
ivi
ti
esel
igi
blef
orf
inanci
alassi
stanceundert
hescheme.

 Mar
ket
ingpr
oject
sabr
oad

 Capaci
tybui
l
ding-t
rai
ning,
andqual
i
tyupgr
adat
ion.

 Suppor
tforst
atut
orycompl
i
ances

 Mar
ketst
udi
es

 Pr
ojectdev
elopment

 Dev
elopi
ngf
orei
gnt
radef
aci
l
itat
ionwebpor
tal

 Suppor
tforcot
tageandhandi
craf
tsuni
ts.

Fori
nst
ance,
undert
heMar
ket
ingPr
ojectAbr
oad,
thef
oll
owi
ngAr
etheact
ivi
ti
est
hatar
efunded

 Openi
ngofshowr
ooms.

 Openi
ngofwar
ehouses.

 Di
spl
ayi
nint
ernat
ional
Dept
.st
ores.

 Publ
i
cit
ycampai
gnandBr
andpr
omot
ion.

 Par
ti
cipat
ioni
ntr
adef
airet
c.abr
oad.

 Resear
ch&pr
oductdev
elopment
.

 Expor
tpot
ent
ial
sur
veyoft
hest
ates.

 Regi
strat
ionchar
gesf
orpr
oductr
egi
str
ati
onabr
oadf
orphar
maceut
ical
s,bi
o–t
echnol
ogyandagr
o–
chemical
s.

 Test
ingchar
gesf
orengi
neer
ingpr
oduct
sabr
oad.

 Antot
heract
ivi
tyspeci
fi
edbyt
hegov
ernment
.

5.Assi
stancet
oSt
atesf
orI
nfr
ast
ruct
ureDev
elopmentofExpor
ts(
ASI
DE)

TheStateGover
nmentsshall
beencouragedt
opart
ici
pat
einpromoti
ngexpor
tsf
rom t
hei
rrespect
ive
Stat
es.Fort
hispur
pose,Depart
mentofCommercehasformul
atedaschemecal
l
edASIDE.

Suit
abl
eprov
isionhasbeenmadeintheAnnual
PlanoftheDepart
mentofCommerceforall
ocat
ionof
fundst
othestatesonthet
wincr
it
eri
aofgrossexpor
tsandtherateofgr
owthofexpor
ts.

TheSt atesshal
l ut
il
isethi
samountf ordev elopi
ngi nfr
astructuresuchasr oadsconnecti
ngpr oduction
centreswi t
hthepor t
s,sett
ingupofI nl
andCont ainerDepot sandCont ai
nerFrei
ghtStat
ions,creati
on
ofnewSt at
elevelexportpromotionindustr
ialparks/zones, augment i
ngcommonf aci
li
ti
esint he
existi
ngz ones,
equityparti
cipati
onininfr
astructureprojects,devel
opmentofmi norpor
tsandj ett
ies,
assistanceinsetti
ngupofcommonef fl
uentt r
eatmentf acili
ti
es,stabil
izi
ngpowersupplyandany
otheractivi
tyasmaybenot if
iedbyDepar t
mentofCommer cef r
om timet oti
me.

6.I
NDUSTRI
ALRAW MATERI
ALASSI
STANCECENTER(
IRMAC)
Benef
it
sofr
awmater
ial
sassi
stancescheme.
1.Lowerpr
ices
2.Credi
tperi
od
3.Quali
tyr
awmat eri
als
4.Focusonproducti
on
5.Timel
yavail
abi
li
tyofmat
eri
als