UNIT1_ EXPORT-IMPORT TRADE REGULATORY FRAMEWORK Structure 10 Objectives U1 tnodition 13 Objecsnes of Expar-Import Policy 15) Gener rovaions Repoding Expr snd pot \9 Tein Qosionseae a eT UNIT 2 EXPORT SALES CONTRACT Structure 2.0 Objectives 2.1 Introduction . 22 Nature of Export Sales Contract 22.1 Form of Contract 2.2.2 Distinction between Domestic Sales Contract and Export Sales Contract 2.3 International Contract Terms 2.4 Rights and Duties Under Principal Incoterms 2.5 General Conditions in Export Contracts 2.6 Special Contracts 2.7. Frustration of Contracts 2.8 Methods of Dispute Settlement 2.9 Let Us Sum Up 2.10 Key Words 2.11 Answers to Check Your Progress 2.12 Terminal Questions Though the offer-a arise, Let us c offer in a proform: importer accepts tt two sets of conditi considered legally his acceptance w 2.2.1 Formo ‘There are no unive formal document s to have some doct evidences can be | fetters of credits. ¢ exporter must hav: contract to a numt 2.2.2 Distine Contra ‘A major point ofUNIT 3. EXPORT-IMPORT DOCUMENTS AN OVERVIEW Structure 3.0 Objectives 3.1 Introduction 3.2 Rationale of Documents aa 3.4 3.5 3.6 3.7 3.8 3.9 3.2.1 Commercial Perspective 3.2.2, Legal-Perspective 3.2.3 Incentive Perspective ~ Kinds and Functions of Documents 3331 Commercial Documents 3.3.2 Legal Regulatory Documents 3.3.3 Documents for Claiming Incentives Standardised Pre-shipment Export Documents Import Documents Let Us Sum Up Key Words Answers to Check Your Progress Terminal Questions———.———M——————a UNIT 4 ELECTRONIC DATA INTERCHANGE (EDI) SYSTEM Structure 4.0 Objectives 4.1, Introduction 4.2 Definition 4.3 Benefits of EDI 4.4 Key Components of an EDI System 4.5 EDI and Bar Coding 4.6 EDI Standards 4.7 Value Added Network Services (VANS) 4.8 Business Approaches to EDI 48.1 Role of EDI in Business 482 Developing an EDI Plan 4.9 Let Us Sum Up 4.10 Key Words 4.11 Answers to Check Your Progress ; 4.12 Terminal Questions a 0 OBSECTIVES eros = EDI eliminates the proce Ialso enables data whic system without having to ‘exchange of trading infor administration, health car components of EDI. You added networks and busi 4.2 DEFINITH Electronic Data-Interchan between computer system structure the transaction o “the transfer of structured computer, by electronic m A brief explanation of the also known as “paperless accepted method of assem and unit price may be stru contrast this definition wit in the form of an ad-hoc € EDI refer to ‘structured trPROGRESS g Frade? ‘on must consider while eo ray get thro at UNIT 5 PROCESSING OF AN EXPORT ORDER Structure $0 Objectives $1 Introduction 52 Nature and Format of Export Order 3 Examinalon ard Confimation of Export Order 4 Manufacturing or Procurng Goods $5 Cental Exes Clearance 56 Pre- Shipment Inspection 157 Appointment of Clearing nd Forwarding Agents 'S8 Transportation of Goods to Prof Shipment 59 PortFormalies and Customs Clearance S10 Despatch of Documents by Forearding Agenttothe Exporter 51 Certfieate of risin and Shipment Advice 512 Presentation of Doeurenso Bank S13 Claiming Export Icesives Sia ExeseRebie 5132 Duty Dewback Sit LetUsSun Up SIS Key Words 56 Answers to Check Your Progress SI7 Terminal Questions 5.0 OBJECTIVES ‘Merstidying ths unit, you should be ale wo + desibe diferent tages, preparation and processing of documents fr pe-shipment andUNIT 6 TERMS: OF PAYMENT Structure 60 Objectives G1 tntreduction 62 Terns of Payment 63 Advance Payment 64 Documentary Credit G.1 Portes in Documentary Cris Gal Debs included in Letiers of Credit 64.3 Practical Mechanism Gaal Dillerent Kinds of Later of Ci 64S — Doctiments required unde Let ines fr the Exporters 65 Forms of Documentary Credit 63:1 Documents Against Payment 632 Documents Aginst Acceptance 66 Open Account with Provisions for Periodic Settlement 67 Shipment on Consignment Basis 68 Let Us Sum Up 69 Key Words G10" Answers to Check Your Progress Gt Terminal Questions | | | | 6.0 OBJECTIVESUNIT 7 EXCHANGE CONTROL REGULATIONS AND FACILITIES CONCERNING EXPORTS Structure 7.0 Objectives 7.1 Introduction 72 Foreign Exchange 73 Objectives of Exchange Control 7A Foreign Exchenge Management Act, 1999 75. Regulation and Management of Foreign Exchange 7.6 Other Provisions 77 Export Declaration Forms 78 LetUsSum Up 79 Key Werds 7.10 Answers to Check Your Progress 7.11 Terminal Questions Foreign ex of foreign tions. Foreign Es A foreign {| against ano foreign tra finished pr } trade. Servi how, consu capital and students ab which taker exchange t the right to is precious transactions OR IE CTIVE:sgement of foreign MARA REA me | Se ae ONIT 8 EXPORT FINANCE 25 must be declared 01 UNIT 8 EXPORT FINANCE nighing the forms. Structure 1 80 Objectives Bi lrodetion 82 Institutional Framework 83 Pre-Shipment Finance As Packing Cit B32 ___ Advance aonnt Incstves 433 __Preshipment Godin orien Cuercy 4 Post-Shipment Finance Rat Nopuiton of xpon Decamens Under Later of est a2 Pevchoe Dicom orge Bis ‘ a3 Adeance gin dlls Sent notion Ae Agvmce agains Goods Sent on Crsgnmet KES Advance gaia Expat lestvs . a6 Aovnce against Und Hines Ad Adve nin Retention Meney aes we gt roth Gas: 9d Exports Genes ao pment Cot in orsign Coney 5 Exports Under Deferred Payments 86 Deferred Credit Facilites 87 Role of Export pert Bank ff Be Recent Developmentsin Export Financing 89 LetUsSum Up 810 Key Words B11 Answers to Check Your Progress 812 Terninol QuestionsUNIT 9 EXPORT CREDIT INSURANCE Structure 90 Objectives 94 Introduction 92 Meaning of Credit Risk 93 Organisation Covering Credit Risk 94 Types of Cover Issued by ECGC 94.1 Saniard Policies 942 Specie Policies 943 Services Policy 944 Cansrueton Works Policy 95 Basic Principles of ECGC Operation 96 Procedure for Taking Policy 97 Procedure for Making a Claim 97.1 Procedural Formalities 972 Documentsin Suppor of Claims 98 Small Exponer’s Policy 99 Financial Guarantees 910 Let UsSumUp 941 Key Words 912 Answers to Check Your Progress 913 Terminal Questions Q OBJECTIVES a bility to offer competitive ters of eredit tothe those offered by exporters from competing count tions but more so in export transactions. The fa insolveney of for any other reason exposes the ex arise even in eases where the buyer's eredit stan cautious an stitude in evaluating buyers may res nities, Hence, eredit risk is unavoidable specially Credit isk is greater in export transactions becaus ieditfieul to obtain and henee, itis difficult to ev has assumed large proportions today not only bec become larger but also because far-reaching polit ‘payment for goods exported, Balance of payment And allthis is possible even when the buyer i fll to contend with the possibilities ofthe insolvency recent yeas, there has been a significant increase in many éeveloped countries. n such a high risks innmense help (i) exporters and (i te banks wh 9.3__ORGANISATION COVE], There are more than 40 organisations providing co ailmembers of union Intemational Usion of Cre ‘known as BERNE UNION. In most countries, the ‘hough afew of them are privately owned. tn Indi, Corporation of India Limited to cover export cred cterprise—— ee ort order the ak which gesmall r endings racking port il firms. UNIT 10 IMPORT FINANCE Structure 100 Objectives 101 Introduction 102 Import Financing 103. The Regulatory Framework 104 Exchange Control Regulations Concerning imports 105 Methods of import Finance 10.3.1 Financing import under Letter of Credit 105.2 Financing egainst illsunder Colleton 10.53 Financing Import agnist Defered Payment 154 Financing under Forsign Credit 10.5 _lonport Loans by Export Import Bank of Indi 106 Let Us Sumup 107 Key Words 108 Answers to Check Your Progress 109 Terminal Questions 10.0 OBJECTIVES Alter studying this unit, you should be able to feance of import financing decisions © cxplin the nature and, deere the institutional regulatory framework of import Fianeing,UNIT 11 PREPARING FOR SHIPMENT Structure Packing of Goods Nature of Export Cargo Liner and Tramp Shipping Services HAL Line Shiping Service 1142 Temp Shipping Service US Conference Practice Practices ‘archost Charterer Charter by Demie U7 Aie Fighting” 1138 Quality Contol and Pre-Shipment Inspection UK. Consinament wise espection NA Inoeess Oly Canto! HA SeltCenesion 180 9000 Rote of Clearing and Forwarding Agent Aosement of Goods Pot Lets Sum Up ey Words ‘Answers to Check Your Termisal Questions rearess & OBJECTIVES ter studying this i, you shud be abetSek Ge ARIA een cd UNIT12_ CARGO INSURANCE (123, NEED FOR CARG: Steueture ‘Wi shold te gods be nse Th | vee linen beet 120 bce : Str memedance The secede \ 121 taedaion » Gace hem. 2 Need frCapp tance 122 Comet Deen 1221 Lega Dimes 1 123 Natrect Cup enrenes obi ee Ramettem wien goods ar as om ag aceon ir ees ' i =n mares ee ee oe ‘Seis robes fo eeeeare ‘rns eon ther contol Foray 1253 Recor gems trike intermediaries wil 0 be ae caterer aren ee ea ee Se slew oy Eaters Eero oy Sha 129 Ko Woar {io Amwenie heck Van Ret ambit vw of an exert, BN Tamales Sie aaaUNIT 13. SHIPMENT OF EXPORT CARGO Structure 13.0 Objectives (3.1 Introduction 13.2 Stages of Shipment 13.3 Central Excise Formalities 13.3.1 Excise Rebate Poli 13.3.2 Procedural Formalities 13.4 Customs Clearance Formalities 13.4.) Legal Framework 13.4.2 Customs Clearance Stages 13.4.3 Documentary Requirements 13.4.4 Procedural Formalities 13.5 Port Procedures 13.6 LetUs Sum Up 13.7 Key Words 13.8 Answers to Check Your Progress 13.9 Terminal Questionsa UNIT 14. CUSTOM CLEARANCE OF IMPORT CARGO Structure 14.0 Objectives 141 triroduetion 142 Objectives of Custom Clearance 143 Legal Framework 144 Basic information, Documents and Duties HG Basc Information 1442 Documente a3 Dates 14.5 Stages of Custom Clearance 14.6 Procedure of Custom Clearance 4.7 Electronic Data Interéhange (ED) 148 Ler Us Sum UP 149 Key Words 4.10 Answers to Check Your Progress 1411 Terminal Questions 14.0 OBJECTIVES ‘After studying this unit, you stould beable to:| UNIT 15 INSTITUTIONAL SET UP FOR EXPORT PROMOTION IN INDIA Structure 180 Objectives 131 Invedueton 152 Importance of nstittionalnfastructire 153 Government Policy Making and Consultations 184 Export Promesion Councilsand Commedity Boards 185 3 and Specialise Serves Assistance + Toda Ist of ackaga Expr inspection Coane xy ttn Goon Corson EXD Bank for Long Tere Crt Indian Counc of Arron Federation of adan Export Organs (F1E0) India Trade Promain Orzainon TPO) Indian rita of Forel Trade 1559 Natnd aiuto Fashion Techoiogy (SIFT) 186 Commercial Wing of dian Eases Abroad 187 Government Participation in Foreign Trade 158 Organisational St Up in the States 159° LatUssumUp 1310 Key Words SII Anmwersto Check Your Progress 1512" Terminal Questions 15.0 OBJECTIVES ‘Aer staying this wn, yo should be ale to:vores and Induery Atsocta: Individual eoport evel, ‘provide the exporter with information and detals “keting effo atte Indu > providing technical and twlons provide necessary pecially in the il of packag- Sand exhibitions, setlement of rnernmenthave also eiblshed IFT, esies providing export ‘gn-rade management educa- ons ‘emmentofindishave ako oc for directly undertaking ‘ablished Expor Corporations vent to purchase prodocts asa sitions, foreign govern- Tole goods from Inds. ‘PROGRESS 2 ee ee UNIT 16 EXPORT ASSISTANCE IN INDIA. Structure 160 Objectives 161 Introduction 162 Importance of Export Assistance 163 Expansion of Production Bas for Exports 1651 Relax in lads Licensing PoicyMRTPFERAForepnCoisborations 1632 Liberal Ingo of Cuil Goods 1633. EeporProvetng Zones (EZ), Epon Oriented Uns EOU) Speci! Eeonole Zones (Sze Elec Hardwar Teconogy Parks (EHITY md Software edimalogy Park Unis (STP) ‘Accel Supply of Raval Imports igi for Fepoe Trader Tenge Str Ting Houses 1636 Expr Heve Stas for Export of Seer 164 Rendering Expos Prie-Competitve 1681 Psa incentives ; 1642 Fane! senves 165 Strengthening Export Marking fort 6s LaUsSam Up 167 Answersto Check Your Frogress 168 Key Words 169 Terminal Questions 16.0 OBJECTIVES Ate studying this uit, you should be abl to 1 expla theimporance of export assistance na describe various esitances provided for the expension of redotion base fer exper snail sistance: provide othe expo‘wpheing expen mrtg tA Deets cre esp inlaw TE ee een te rt, UNIT 17 PROCEDURES FOR CLAIMING Keing Developmen fod EXPORT INCENTIVES PROGRESS ny 120. Objecives | ta tarocten | TR Newdfr Peed! Fomatics 1 fees eisee 113) Day Dawah chee Dents as | 1122. Pceur or lining DoD (1A Relnd of Cental xcs Tra tag Uden of Unde ale 120) {742g Ucercln rfemserDuy on ExSerMaen Be nyo or manefcire~ Mure fap oes le 160) ure of goods without payment of TAS Export of Goods Under Bond Under Rule 13. 15 DiniExemptnfemison heme Tt Day Sree cent det wpe, 4 1252), Bayon Schone 16 Tw eunptin ceo ence sense Tat heme Bein tpodatiantetmaatieckw ||) 1142 SusteCcengeoe LaussemUp Key Word, ‘ners Check Your Prope “emia Queene protector pn eed in Indi or rendering promotion? Describe the