Meaning of export

Export meaning includes such manufactured goods and services

which originate in one country, but are procured by another
country. Export can be of services and goods of any type, and
that may be traded through electronic transmission or traditional
transportation like shipping.The top exports from India are
mineral fuels (14.9%), precious metals and gems (12.4%),
machineries (6.3%), and pharmaceuticals (4.4%) among others.
The fastest gain rate of exports from India is recorded for
organic chemicals at 30.7%. 
Registration process

 Establishing an Organization
Opening a Bank Account
Obtaining Permanent Account Number (PAN)
Obtaining Importer-Exporter Code (IEC)
 NumberRegistration cum membership certificate
(RCMC)
Selection of productSelection of MarketsFinding
 BuyersSamplingPricing/Costing
Negotiation with BuyersCovering
Risks through ECGC
Selection of Product
Market Payment Terms

1.  Advance Payment
Advance Payment is a payment done by an importer to the exporter
before shipment.
This method is most beneficial from exporter perspective as he receives
funds in advance. The payment may be received either as soon as the
order is confirmed or any time before shipment.
 2.  Letter of credit
Letter of credit is a type of payment term opted by importers and
exporters. Letters of credit (LCs) are one of the most secure instruments
accessible to international traders. An LC is a commitment by a bank on
behalf of the buyer that payment will be made to the exporter, provided
that the terms and conditions stated in the LC have been met, as
confirmed through the presentation of all required documents.
 3.  Documents against Payments - D.A.P or D/P basis
Documents against Payment – DP/DAP is a term of payment
in international trade. It relies on an instrument generally used
in international trade called a bill of exchange or draft.
In this term, the documents under consignment are delivered
to buyer/importer only after collecting payment of goods by
buyer’s bank. The exporter ships the goods and submits
Shipping documents to importers Bank with their instructions
to discharge documents to the importer against payment,
where the importer needs to pay the exporter when the
documents being released from the Bank.
 4.  Documents against Acceptance (D/A)
The Documents against Acceptance (D/A), depend on an
instrument broadly used in international trade called a
bill of exchange or draft. Under this, transaction
utilizes a time draft or Usance (It is the allowable
timeframe, allowed by custom, between the date of the
bill and its payment) i.e, the Exporter allows credit to
Importer.
Export Costing & Pricing

Export pricing and domestic pricing are different:

different overseas market conditions, different costs,
different quoting formats and different currencies all
affect what you charge your customers for your
products or services. Pricing for any market requires
an understanding of the relative costs, demand and
competition of that market.
Many overseas contacts you meet will want to know
your price, so it is essential to have your pricing
determined before you approach an overseas market.
The total cost of exporting

•  Research into international markets

•  Travel to overseas markets
•  International communications
•  Production of export literature (including
translations)
•  Modifications to your product or service
•  Packaging and labeling (products)
•  Product liability insurance or other insurances
•  Compliance with foreign standards
•  Credit checking
•  Export financing charges
•  Promotional costs
Different prices for different markets

•  For products, distributor, wholesale and retail mark-

ups are often different in each market and industry,
which will affect the final price of your products.
Remember to include questions about these mark-up
costs when you are doing your initial market research.
•  The price that end users are willing to pay for your
products or services will not be the same in all markets
around the world.
Price changes

Exporters need to adjust prices for many reasons

including increases in the cost of production such as
raw materials, currency fluctuations and inflationary
increases. But customers don’t like surprises and
although price increases are part of doing business, it’s
wise to give as much notice as possible
Extending credit terms will have a real
cost impact
Extending credit terms will have a real cost impact on
your company because cash flow is critical to any
business.
It’s not always all about price
Although some products are sold purely on the basis of
price, many exporters find that price is not the only
factor that affects their success in attracting new
customers. Credit terms, delivery speed and reliability,
customer service and warranty, after-sales care and the
quality of your product or service are all important in
getting and keeping new international business.
Supply chain costs
•  Shipping ex-factory to port of departure
•  Air or sea freight and insurance
•  Import duty and taxes
•  Customs clearance/broker fee
•  Ground transportation from port of entry to the
warehouse or the customer
•  Warehouse fees
•  Break-bulk fees, if third party warehouse applies
•  Agent’s commission or importer’s mark-up
Cost Plus and Top Down are two of the best costing methods to
calculate your export price, but they are best used in parallel;
do two separate calculations and then compare one against the
other to achieve a finely-balanced result. Here is what you do:

     1. Cost Plus: you work outwards from your ex-factory price
to the end customer.
     2. Top Down: you work from the ideal end customer price
backwards to you.
The reason that these two methods in parallel are better than
using one method alone is that each method individually has its
weaknesses.
Using the Cost Plus method alone, for example, may
result in a price that is too high, which means that you
won’t have many customers. And, if you sell at a price
that customers would ideally like and calculate by
using the Top Down method, you may end up losing
money on each order.