Export process
Download as PPTX, PDF2 likes707 views
Getting export orders is essential for any export business to survive. There are several strategies businesses can use to find customers abroad, such as attending trade fairs, contacting government embassies, or working with an agent. Once a customer is located, exporters will provide product catalogs, samples, and quotations to the customer to negotiate details like price, payment terms, and delivery. If an agreement is reached, the customer will place a purchase order and the exporter will start the manufacturing process. Key steps in manufacturing include packing products, preparing required documents, and arranging for customs clearance and shipping. After shipping, exporters will send necessary commercial and regulatory documents to the customer and await payment according to the agreed upon terms.
Export process
- 1. EXPORT PROCESS BY BIDISHA SARMA
- 2. FINDING OUR CUSTOMER: GETTING AN EXPORT ORDER IS THE MAJOR TASK OF ANY EXPORT BUSINESS. EVERY BUSINESS INDIVIDUAL OR FIRM HAS THEIR OWN MARKET STRATEGIES TO OBTAIN EXPORT ORDERS. WITHOUT RECEIVING AN EXPORT ORDER, THE COMPANY CAN NOT SURVIVE. SOME OF THE STRATEGIES TO FIND A CUSTOMER ABROAD: • DIGITAL WORLD. • ATTENDING TRADE FAIR. • EXPORT PROMOTION COUNCILS/ COMMODITY BOARDS. • GOVERNMENT EMBASSIES. • PERSONAL MEET. • THROUGH AN AGENT. • THROUGH CONTACTS.
- 3. PLACING AN ORDER: • AFTER LOCATING THE CUSTOMER, WE SHOULD APPROACH THEM BY SENDING… o PRODUCT CATALOGUES. o SENDING SAMPLES. o QUOTATIONS ( WITH PRICE, PAYMENT TERMS, DELIVERY TERMS ETC). • THEN THE NEGOTIATION HAPPENS BETWEEN THE SELLER AND THE BUYER ABOUT PRICE, SAMPLE, PAYMENT TERMS, DELIVERY TERMS ETC. • AFTER FINALIZING ON THE PRODUCT, THE CUSTOMER PLACES A PURCHASE ORDER WITH THE EXPORTER. • THEN THE EXPORTER PLACES ORDER WITH THEIR MANUFACTURING PLANTS ACCORDING TO THE REQUIREMENT. • THE PLANT GIVES A DISPATCH DATE OR MATERIAL READINESS DATE TO
- 4. MANUFACTURING: • AFTER PRODUCING THE PRODUCT, IT IS PACKED IN WOODEN PALLETS (FUMIGATED). • DOCUMENTS ARE PREPARED ACCORDING TO THE INCOTERMS. • WHO WILL NOMINATE THE SHIPPING LINE IS DECIDED ACCORDING TO INCOTERMS.
- 5. CUSTOM HOUSE AGENT: THE EXPORTER HIRES A CHA I.E. CUSTOM HOUSE AGENT. A CUSTOMS HOUSE AGENT IS LICENSED TO ACT AS AN AGENT FOR TRANSACTION OF ANY BUSINESS RELATING TO THE ENTRY OR DEPARTURE OF CONVEYANCES OR THE IMPORT OR EXPORT OF GOODS AT A CUSTOMS STATION. MAIN FUNCTIONS OF A CHA: • CUSTOM CLEARANCE. IF THE CHA WORKS AS A FREIGHT FORWARDER TOO THEN IT TAKES CARE OF THE FOLLOWINGS: • BOOKING SPACE IN VESSEL. • GETTING BILL OF LADING. • MOVEMENT OF CONTAINERS ETC. AFTER BOOKING THE SPACE IN THE VESSEL THE CHA SENDS THE CONTAINERS TO THE PLACE WHERE THE PRODUCT IS KEPT READY. CHA LOADS THE PRODUCT TO THE CONTAINERS.
- 6. PRE-SHIPMENT: • PRE-SHIPMENT DOCUMENTS ARE PRODUCED BEFORE SAILING OF THE SHIP. • THEY ARE: PACKING LIST FROM THE FACTORY. INVOICE ARE-1 (FOR EXEMPTION OF DUTY) • ALL THE DOCUMENTS ARE SUBMITTED TO EXCISE DEPARTMENT TO GET DUTY EXEMPTION. EXCISE DEPARTMENT VERIFIES AND KEEPS A SET OF COPY OF THE DOCUMENTS. ANOTHER SET IS GIVEN TO THE TRANSPORTER. TRANSPORTER WILL HAND OVER TO CHA. • CHA FILES SHIPPING BILL WITH CUSTOMS. • SHIPPING BILL COPY IS GIVEN TO THE OPERATION PEOPLE IN THE PORT. • ACCORDING TO THE SHIPPING BILL THE CONTAINERS ARE LOADED TO THE SHIP.
- 7. POST SHIPMENT: • SHIPPING LINE IS GIVEN INSTRUCTION BY THE EXPORTER ABOUT THE BILL OF LADING. • AFTER CONFIRMING THE DRAFT WITH THE EXPORTER, THE SHIPPING LINE PROVIDES BILL OF LADING TO THE EXPORTER. • THERE ARE A NUMBER OF DOCUMENTS, WHICH HAVE TO BE PREPARED BY THE EXPORTER IN ORDER TO ARRANGE EXPORT OF HIS CONSIGNMENT. 1. COMMERCIAL DOCUMENTS. 2. REGULATORY DOCUMENTS.
- 8. COMMERCIA L DOCS (16) PRINCIPAL COMMERCIA L COMMERCIA L INVOICE PACKING LIST CERT. OF INSPECTION CERT. OF INSURANCE BILL OF LADING CERTIFICATE OF ORIGIN BILL OF EXCHANGE SHIPMENT ADVICE AUXILARY COMMERCIA L PROFORMA INVOICE SHIPPING INSTRUCTIO NS INTIMATION OF INSPECTION INSURANCE DECLARATIO N SHIPPING ORDER MATE'S RECEIPT LETTER TO BANK FOR COLLECTION/NE GOTIATION OF DOCS REGULATORY DOCS (8) ARE 1 & 2 SHIPPING BILL / BILL OF EXPORT RECEIPT FOR PAYMENT OF PORT CHARGES VEHICLE CHIT SDF / GR /PP /SOFTEX /VOP FORMS (EXCHANGE CONTROL DECLARATION) FREIGHT PAYMENT CERTIFICATE INSURANCE PREMIUM PAYMENT CERTIFICATE
- 9. POST SHIPMENT: • AFTER SAILING OF THE SHIP, THE POST SHIPMENT DOCUMENTS ARE SENT TO THE CUSTOMER DIRECTLY OR VIA THE BANK. • PAYMENT IS RECEIVED ACCORDING TO THE PAYMENT TERMS DETERMINED BEFORE. • AFTER RECEIVING THE GOODS THE IMPORTERS SEND FEEDBACK ABOUT THE GOODS.