INSTITUTE: University School of

Business
DEPARTMENT ..Management..
Masters of Business Administration
Subject Name: Export Import Documentation
Code: BAD-743

Introduction to Export Import DISCOVER . LEARN .

in India EMPOWER
 Import
Documentati
on
Course Outcome
CO Title Level
Number
CO1 Will have an knowledge of the Export Remember
and Import business with major  
emphasis on the different agencies Will be covered in
supporting exports in India. this lecture
CO2 Will have understanding of the details of Understand
Export Import Documents with emphasis  
on kind of documents and role in export
import documentation procedures.
CO3 Have an elaborative understanding of Understand
the Import procedures.

2
Export and Import Documentation
UNIT – I
Dr. Bhupinder P S Chahal

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 Introduction to Export
Import in India –
Present and Future
Dr. Bhupinder P S Chahal

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 Course Objective
• To give exposure and understanding of the
procedures and documents involved in Exports -
Imports of India.

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 Global Economic Outlook
• As per World Economic Outlook, Nov 2019, Global output
grew at a rate of 3.3% in 2019 and is projected to grow at
rate of 3.6% for the year 2020.
• Trade tensions increasingly took a toll on business
confidence, consequently financial market sentiment
worsened, with financial conditions tightening for
vulnerable emerging markets in the spring of 2018 and then
in advanced economies later in the year, weighing on global
demand.
• America’’s recently announced trade measures had an
impact on China and a number of Asian economies, due to
which they have experienced weaker growth in 2019 of
1.70% and it was the 11th largest importer with a share of
2.50% in 2017.

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 INTRODUCTION

Trade between two or more nations is called Foreign trade or

International trade
Foreign trade is also known as External trade.

Fore i gn trade transaction

Import trade Export trade

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 Composition of Foreign Trade of India

Export Import

Fuels and Oils,

Fuels, capital goods,
Manufactured goods
chemicals, food grains,
textiles , Gems and
Petroleum products, Capital
Jewellery, Handicraft,
goods ,Pearls and precious
Light machinery etc.
gems, Iron and steel
Fertilizers ,edible oil

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 Export and Import
• Almost all of us know the meaning of exports in general terms is ‘
any goods moved out of the country is called exports’.
• But some of you who studied academically about exports may be
having a more broader understanding of the word in different
aspects.
• In India, “as per section 2(18) of Customs Act defines “Export" as
meaning, with its grammatical variations and cognate expressions,
taking out of India to a place outside India”.
• Let me explain with an example. An exporter moves cargo from New
Delhi to Mumbai port after completing necessary legal customs
export formalities and obtaining ‘let export order’. The cargo was
loaded in to a container and confirms ‘On board’ the Vessel. The
Vessel carrying the said cargo sails from the land of Mumbai port. It
is clear that the cargo crossed out the land border of India.
• Based on the above definition, can we call ‘exports’ now? Answer is
‘No’. Why?

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 Export and Import
• Although the cargo crossed out the land border of India, it
has not been moved outside ‘India’. Why?.
• Export means ‘taking out of India to a place outside
India'. Here we need to find out the definition of ‘India’.
'India' is defined in section 2(27) of Indian Customs Act ‘to
include the territorial waters of India’. Then what is the
territorial waters limit of India?
• Territorial water is up to 12 nautical miles (1 nautical
miles = 1.852 kilo meters) in to the sea from the coast of
India.
• In the above example, once after moving vessel carrying
the said cargo cross 12 nautical miles in to the sea from
the coast of Mumbai port, we can call the said shipment
“exported”.

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 IMPORTS
 It refers to goods that we buy from other countries.
 At times of independence India was an agrarian economy.
 Partition of our country has brought food shortage because wheat
growing regions vested with Pakistan.
 Hence India need to import in large quantities, food , cotton jute. Etc
 With development of economy over these days, there occurred
changes in composition of imports.
 The development required setting up of industries modernization of
agriculture etc.
 Capital goods like machinery chemicals fertilizers metals minerals
petroleum products etc.

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 Export and Import
• To conclude the same we can say that:
1. Export means ‘Taking out of India to a place
outside territorial waters of India which is 12
nautical miles into the sea from the coast of
India”. 
2. Import means ‘Bringing in to India from a place
inside territorial waters of India which is 12
nautical miles in to the sea from the coast of
India’.
3. The liability to pay import duty commences as
soon as the goods entered 12 nautical miles in to
the sea from the coast of India.

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 DIRECTION OF INDIA’S FOREIGN TRADE

Direction means countries to which India exports its goods

and countries from which it imports.

Direction of trade also helps to understand the diplomatic

relationship maintained by India with other countries of
trade.

West Europe (28.1 per cent), America (25.4 per cent), Africa
(6.3 per cent) and East Europe (3.1 per cent).

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 Group of countries to which India Exports

EASTERN
OECD OPEC ASEAN
EUROPE

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 Contd..
Organization for
Organization of
Economic Co-
Petroleum Developing
operation &
Exporting Eastern Europe.
Development Nations
Countries (OPEC)
(OECD).

●
USA, ●
China, Hong
Canada, ●
Kuwait, Iran, Kong, South
●
Romania,
European Iraq, Saudi Korea,
Russia and
Union (EU), Arabia and Singapore
others
Australia and others. and
Japan Malaysia.

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 1.51 1.27
1.57
1.92 PETROLEUM: CRUDE

2.15 GOLD
2.15
OTHER COMMODITIES
2.59
PETROLEUM PRODUCTS
25.37
2.72 PEARL, PRECS, SEMIPRECS STONES

COAL,COKE AND BRIQUITTES ETC

3.11
TELECOM INSTRUMENTS

ORGANIC CHEMICALS
3.71
IRON AND STEEL

PLASTIC RAW MATERIALS

4.98
VEGETABLE OILS
6.91
5.18 INDL. MACHNRY FOR DAIRY ETC

6.68 COMPUTER HARDWARE,

PERIPHERALS

BULK MINERALS AND ORES

Fig. 9 Top 15 Commodities % Share in Import
2018-19 FERTILEZERS MANUFACTURED

Source: DGCI&S, Kolkata

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 A)  BULK IMPORTS

35.96 B)  PEARLS ANDPRECIOUS

STONES
47.52
C)  MACHINERY

D)  PROJECT GOODS

E)  OTHERS
1.01 10.2
5.31

Fig. 13 Import of Principal Commodities Groups 2018-2019

%Share
Source: DGCI&S, Kolkata
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 Table 5. Top 15 Commodities of Import Values in Rs. Crores

Rank Commodity Apr-Oct  2019 Apr-Oct  2020(P) %Growth %Share

1 PETROLEUM: CRUDE 4,98,932.69 4,18,522.14 -16.12 25.37
2 GOLD 1,20,335.78 1,13,969.57 -5.29 6.91
3 OTHER COMMODITIES 42,854.16 1,10,246.83 157.26 6.68
4 PETROLEUM PRODUCTS 68,708.96 85,457.93 24.38 5.18
5 PEARL, PRECS, SEMIPRECS STONES 86,144.39 82,157.64 -4.63 4.98
6 COAL,COKE AND BRIQUITTES ETC 56,454.13 61,221.04 8.44 3.71
7 TELECOM INSTRUMENTS 39,869.59 51,295.04 28.66 3.11
8 ORGANIC CHEMICALS 39,355.32 44,835.22 13.92 2.72
9 IRON AND STEEL 34,058.25 42,707.77 25.4 2.59
10 PLASTIC RAW MATERIALS 27,524.61 35,437.01 28.75 2.15
11 VEGETABLE OILS 23,637.73 35,408.86 49.8 2.15
12 INDL. MACHNRY FOR DAIRY ETC 31,248.24 31,629.44 1.22 1.92
13 COMPUTER HARDWARE, PERIPHERALS 26,080.38 25,866.05 -0.82 1.57
14 BULK MINERALS AND ORES 19,331.44 24,938.30 29 1.51
15 FERTILEZERS MANUFACTURED 24,145.46 20,990.74 -13.07 1.27
  Total 15,90,363.03 16,49,496.65 3.72 100

Source: DGCI&S, Kolkata

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 Export and Import Scenario of India
• Through secular growth over the last three financial years,
following the major downturn in the face of the global
slowdown, merchandise exports for the year 2018-19
reached USD 330.07 Billion, the highest ever, surpassing the
earlier peak of USD 314.4 Billion achieved in 2013-14. This
has been achieved in a challenging global environment.
• The following growth drivers have shaped merchandise
exports growth:
• o Engineering Goods rose from USD 78,695.69 million
in 2017-18 to USD 83,704.54 million in 2018-19, a
growth of 6.36%.
• Petroleum Products rose from USD 37,465.10 million in
2017-18 to USD 47,954.54 million in 2018-19, a growth of
28%.

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 Export and Import Scenario of India
• Organic & Inorganic Chemicals rose from USD 18,508.48
million in 2017-18 to USD 22,573.87 million in 2018-19, a
growth of 21.97%.
• Drugs & Pharmaceuticals rose from USD 17,282.81 million
in 2017-18 to USD 19,188.46 million in 2018-19, a growth
of 11.03%.
• Cotton Yarn/Fabs./made-ups, Handloom Products etc.,
rose from USD 10,260.38 million to USD 11,206.44 million
in 2018-19, a growth of 9.22%.
• Electronic Goods rose from USD 6,393.12 million in 2017-
18 to USD 8,880.96 million in 2018-19, a growth of 38.91%.
• Plastic & Linoleum rose from USD 6,851.12 million in 2017-
18 to USD 8,609.08 million in 2018-19, a growth of 25.66%.

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 Export and Import Performance of India
• Despite a challenging global environment, reflected in sluggish
economic and trade growth and rising protectionism, India ’’s total
exports (goods and services combined) have been growing on a
secular basis since 2016-17 for the last three years and have
surpassed the USD half Trillion (500 Billion) mark in 2018-19, for the
first time.
• The overall estimated exports (merchandise and services) have
reached a new peak of USD 535.9 billion this year, attaining a growth
of 7.47%.
• This has been achieved through concerted efforts by the
Government working closely with various stakeholders, taking
initiatives aimed at reduction in transactions costs through
simplification, streamlining and digitization of export / import
approval processes, IT enabled online implementation of various
export promotion schemes, timely resolution of issues related to GST
refunds, improved logistics, access to export credit at affordable
rates and enhanced competitiveness through targeted incentives etc.

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 Merchandise and Services Trade

India’s Services Trade in 2019

India’s Merchandise Trade in 2019

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 Importance of Import Exports
Development of the Economy

Meeting the shortages

IMPORTS
Imports for better living standard

Improving quality of production

Growth of the Economy- Production; Employment;

Expansion; Demand of other goods; utilization of resources

Source of Foreign Exchange

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 Export Management – Meaning and Intro
• Export business is prevalent around the globe and in recent times it
has grown at much faster rate due to globalisation process.
• Export means transaction of products and services from one nation
to other following legal rules for trade purposes.
• Export management is the use of managerial process to the
serviceable area of exports.
• It is basically associated with export activities and type of
management that brings harmonization and incorporation of an
export business.
• Export management is concerned with export orders and
accomplish objectives to successfully complete in time as per the
requirements given by the overseas buyers.
• The main purpose of export management is to secure export orders
and to make certain for timely delivery of goods as per agreed
norms of quality and other specifications including terms and
conditions agreed to between the exporter and the importer.
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 Categorization of Export
• The export can be grouped into many sections such as
1. Merchandise Exports,
2. Services Exports,
3. Project Exports, and
4. Deemed Exports.
• A merchandise export is related with the export of physical
goods, for example, readymade garments, engineering goods,
furniture, and works of art.
• Service Exports denotes to the export of goods that don't exist
in physical form, that is, professional, technical or general
services.
• Examples of the exports would include export of computer
software, architectural, entertainment or technical
consultancy services.
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 Categorization of Export
• Project export means to develop a project by a business firm in a
different nation. It is viewed as systematically evolved work plan
devised to achieve a specific objective within a specific period of
time.
• Deemed Exports refer to those transactions by the recipient of the
goods in which the goods are made in India.
• The necessary condition is that such goods are manufactured in
India.
• This category of export has been introduced by the Export Import
Policy of the Government of India.
• Some of the examples of goods that are considered as Deemed
Exports, as given in Export-Import Policy (2002-07) are supply of
goods against duty free licenses, Supply of goods to projects
financed by multilateral or bilateral agencies/Funds notified by the
Department of Economic Affairs, Ministry of Finance, Government
of India and supply of goods to the power, oil and gas including
refineries.
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 Function of Export Manager
• Export manager has important role in managing business for
international orders. They must be competent to perform
export business.
• The conventional management structures with functional
classification such as purchases, marketing, finance,
accounts, administration cannot make certain efficiency in
export management through all stages in the export phases.
• Therefore, export manager is needed to successfully
conduct export business operation.
• The basic role of an export manager is to bring about
synchronization and integration of the export transaction
from within the established management structures and
concerned external agencies to guarantee timely delivery of
goods as per the specifications of purchaser.

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 Function of Export Manager
• The export manager is accountable for the successful
completing of the order in terms of time, cost and
technical performance.
• He must provide the guidance necessary to connect the
people and groups from dissimilar departments working
on the export order, into one team in a managerial
organisation and provide the drive necessary to
complete the task on time and within cost.
• He must have good understanding of the techniques
applied in export planning, financial management,
inventory management, merchandising, risk
management, foreign exchange operations, exchange
control, negotiation with banks information systems,
communication, personnel management.
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 Problems and Issues in Export Management
• Major barriers of export management include
language, high risk, government control, difference in
laws, difficulty in payment, custom duty, and lack of
information.
• Other problems of export management are evil
effects of foreign trade, economic dependence,
disadvantage of agriculture country, international
rivalry.
• Researchers said that there is high risk in foreign
trade instead of internal business because goods are
transported to other countries through sea, air in
which there is environmental threat and products
may be damaged from poor climate, rocks etc.
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 Problems and Issues in Export Management
• Usually international trade is under governmental
control and licence is must for doing international trade.
• In export, management, there are differing law in each
country therefore traders have to face many problems
in conducting business.
• Export management become difficult when information
flow is not smooth. It is very difficult to assess the
financial position of businessman located in other
country.
• It is observed that developed nations get advantage
through export business but developing countries may
suffer loss as they cannot manufacture goods at rapid
rate and managerial process is also not very smooth.

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 Problems and Issues in Export Management
• Another problem is dependency on other country for
raw material and if imports are stopped due to some
reasons, country has to suffer a lot in terms of
finance.
• Export management is not smooth due to low labour
productivity, less technological advancement and
laziness.

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 Conclusion

• The year of 1991 was momentous, in the economy, in the history

of India as it witnessed a successful transition of India from a
controlled and slow-growing economy to a liberalized and open
economy that has now found a country amongst the fastest
growing economies in the world.
• India's Foreign Trade has undergone a complete change in terms
of composition and direction. The Government of India
introduced a series of reforms to liberalize and globalize the
Indian economy Reform of Foreign Trade was a critical element in
structural reform as well as economic reform.
• With the support from the Government, some of the Indian
exporters are willing to diversify in their export business. Some of
them are very ambitious to expand their export business by
diversifying in the various sectors.
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 References
[1]K R Sudhaman,„India's Export Scenario‟, SME TIMES July 06, 2015.
[2]Ritesh Kumar Singh,„Exporters need more policy support‟, Business Line April
19, 2015.
[3.] Bikky Khosla,„How to prevent exports downfall?‟ SME TIMES June 23, 2015.
[4.] Chandrajit Banerjee, „FTP 2015-20: Pushing exports and imports in
sync‟,Business Standard April 7, 2015 12:48 a.m.
[5.] Nayanima Basu, „New foreign trade policy to stress manufacturing
exports‟,Business Standard, New Delhi March 28, 2015 Last Updated at 23:20
IST.
[6.] „Simpler sops to help hit $900-bn export target‟, Business Standard Reporter,
New Delhi April 2, 2015 Last Updated at 00:59 IST.
[7.] „Government to reintroduce interest subvention scheme to help SME
exporters‟, SME Times News Bureau, July 18, 2015.
[8.] „Government unveils new FTP; merges all export schemes into two‟, SME
TIMES April 2,2015.
[9.] Giri Pratibha (2017) “Contribution of Foreign Trade Policy (2015-2020) in
enhanching India‟s export competitiveness” International Journal of Trade and
Global Business Perspectives (A Referred Quarterly Journal) April- June, 2017
ISSN: 2319-9059 (PRINT) ISSN: 2319-9067 (ONLINE).
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