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Government of India is providing promotional measures to boost India’s exports with the objective to offset infrastructural inefficiencies and associated costs involved to provide exporters a level playing field. More the exports, more will be the inward foreign remittance, more jobs & employment, lower Current Account deficit.
The Govt. of India tries to compensate for the disadvantages that the Indian exporters face by introducing various Export Promotion Schemes / Export Incentives in India. To be competitive in the global market, it is extremely important to have complete knowledge about all the Export Promotion Schemes / Export Benefits in India and make full use of them.
An important stage after manufacturing of goods or their procurement is their preparation for shipment which involves packaging and labeling of goods to be exported. Proper packaging and labeling not only makes the final product look attractive but also saves a huge amount of money by saving the product from wrong handling the export process.
Choosing the right product to be exported by an entrepreneur is the first intelligent step he needs to take. For this, the Harmonized System of code needs to be identified. HS stands for Harmonized Commodity Description and Coding System. The HS is the international standard for reporting goods to customs and other government agencies. It is a numeric language that is used by more than 180 countries worldwide, and almost 100% of international trade.
Trade Intensity Index is based on an actual observation of bilateral trade flow, and it measures the intimacy of the trading relationship between any given two countries. Higher is the Trade intensity Index, better will be our export possibility and therefore an exporter should choose the market with high TII values.
Checking Trade Intensity Index (TII)
Trade Intensity Index is based on an actual observation of bilateral trade flow, and it measures the intimacy of the trading relationship between any given two countries. Higher is the Trade intensity Index, better will be our export possibility and therefore an exporter should choose the market with high TII values.
You need answer the following questions before you enter into any global market
A. What type of product are you selling ?B. Is it acceptable in the global market? C. Does it have price competitiveness? D. Are you availing the right government schemes? E. Are you targeting the right market?F. Are you customizing the product as per the customers requirement?G. What is the size of the world market for a product? H. What are the trends for that market – i.e. is the market growing and by how much?I. With which countries does my country currently trade for certain products?J. Are there opportunities to identify new or alternative markets?K. What tariff barriers exist in a specific market?L. Which countries compete to supply to a specific market and to the world?
An exporter will need to know the comparative advantage of the product he needs to export. For this a competitiveness tool has been used namely Revealed Comparative Advantage (RCA). RCA use the trade pattern to identify the sectors in which an economy has a comparative advantage, by comparing the country of interests’ trade profile with the world average and is therefore defined as a country’s sectoral share divided by the world sectoral share.
Business Interpretations of RCA values for an exporter
REGIONAL INSTITUTE OF INTERNATIONAL TRADE is a contemporary institute offering International Trade Analysis services to various government and non-government organizations. Our company is involved in the preparation of market analysis reports across the country and globally. We are dealing in various types of export-oriented services at affordable prices.
We offer accurate international trade analysis reports after complete data collection and verification by our experts. Established in 2020, we have offered our services to various organizations to help them in taking adequate export-related decisions. We have achieved expertise in the field and offer excellent services as per international quality norms at affordable rates. Mr Rahim Itaz, the founder of the institute has gained an excellent position in the service industry for offering excellent trade analysis reports.
Basic Course
Certificate In International Trade – (CIT) & Title Of The Course
Advance Certificate In International Trade Managmanagement (ACITM)
| Heading | Course Contents | Title of the Paper | Syllabus Covered |
|---|---|---|---|
| Export Assessment & Readiness | Legal Definition of Exports / Inner Qualities required for success in Exports / Overall understanding of the System for Exports / EXIM Partners of India | Basics of International Trade | Evolution of WTO, Export Know-how, Legal definition of export, Purpose of exports, Expor Entrepreneurship, Export Planning, Steps to start export business, India's exporting markets and products |
| Concept Of Globalisation | Globalization is the free movement of goods, services and people across the world in a seamless and integrated manner. Globalization can be thought of to be the result of the opening up of the global economy and the concomitant increase in trade between nations. | Basics of International Trade | The different aspects and dimensions of globalization (economic and political) will be presented, analyzed and discussed. |
| Export Essentials | Essentials of Exports Objectives / Basic Steps to Export / Export Preliminaries / How to export? / Marketing related issues / Where to Export / Pricing and Costing | Basics of International Trade | Export Marketing, Export Instititutional Framework, Export Pricing and Costing, Check List for EXIM Operations, Government schemes, WTO related issues, Export promotion websites, WTO, |
| Preliminaries Of International Trade | The base of every successful business is proper planning and proper knowledge of all the aspects of business. So, these are the preliminaries that one should consider before starting an export business. | Basics of International Trade | Discusses the preliminary considerations that anyone intending to aquire knowledge in the export business |
| International Trade Environment | A firm has no contral over the external environment even in a domestic business; in International Business, the firm has to follow not only the rules of the country but also of the exporting countries | Basics of International Trade | Appraising International Trading Environment, Minimizing Implications of Trading Environment on Business, |
| Selection & Adoptation Of Exportable Products | Seleection of Exportable Products is the most important decision in FT / Concepts, Design, Selection, Adoptation of International Products fof Exports | Basics of International Trade | Concept of Product for International Markets, Export Product Planning, Designing the Products for International Markets, Selection of Product for Export, International Product Policy: Standard versus Adapted Product, Leveraging Product Life Cycle Stages in Exports |
| Export Excellence Of India | Economic engagements in Evolultion, Direction, Composition and Futrure of India's Foreign Trade / Detailed database studiy of India's EXIM Market aspired at USD $ 5 T Economy by 2025 | Basics of International Trade | Historical perspective of India’s Foreign Trade, India’s present Foreign Trade Scenario, Direction of India’s Foreign Trade, Composition of India’s FT, Future of India’s FT expansion and diversification Historical perspective of India’s Foreign Trade, India’s present Foreign Trade Scenario, Direction of India’s Foreign Trade, Composition of India’s FT, Future of India’s FT expansion and diversification Historical perspective of India’s Foreign Trade, India’s present Foreign Trade Scenario, Direction of India’s Foreign Trade, Composition of India’s FT, Future of India’s FT expansion and diversification |
| Government Export Institutions | DGFT / IEC / EPCs and RCMC and their roles in Export Promotion Activities | Elements of International Trade | Directorate General of Foreign Trade (DGFT), Import Export Code (IEC) and related issues, Export Promotion Activities, EPCs, RCMC Directorate General of Foreign Trade (DGFT), Import Export Code (IEC) and related issues, Export Promotion Activities, EPCs, RCMC Directorate General of Foreign Trade (DGFT), Import Export Code (IEC) and related issues, Export Promotion Activities, EPCs, RCMC |
| Application Of Itc-Hs Codes In International Trade | While conducting FT, the Firms from various countries trade by using a common Trade Classification for the tradable products to assure themselves that during the Pre-Business Stage; the same Product is being discussed | Elements of International Trade | ITC – HS Classification, HS Classification Principles - Arrangements, The basic Principle for identification of the HS code ITC – HS Classification, HS Classification Principles - Arrangements, The basic Principle for identification of the HS code ITC – HS Classification, HS Classification Principles - Arrangements, The basic Principle for identification of the HS code |
| Connotation Of Gst In International Trade | To understand the Concept of Good and Services Tax in India / the need for implementation and Design of GST | Elements of International Trade | To understand the concept of Good and Services Tax in India, The neutralization of GST in Exports, The LUT – Letter of Undertaking, Withdrawal of IGST Refund Facility To understand the concept of Good and Services Tax in India, The neutralization of GST in Exports, The LUT – Letter of Undertaking, Withdrawal of IGST Refund Facility To understand the concept of Good and Services Tax in India, The neutralization of GST in Exports, The LUT – Letter of Undertaking, Withdrawal of IGST Refund Facility |
| International Trade Agreements | Trade agreement is nothing but a legal binding between two or more countries wherein the trading countries commits certain benefits only to their signing partners which is not to be availed by countries outside the agreement. | International Trade Documentations | Definition of Trade Agreement, Existing TA-s signed by India, Understanding of TA-s in the company’s global sourcing strategy Definition of Trade Agreement, Existing TA-s signed by India, Understanding of TA-s in the company’s global sourcing strategy Definition of Trade Agreement, Existing TA-s signed by India, Understanding of TA-s in the company’s global sourcing strategy |
| Non - Tariff Barriers | Towards making a successful Export transaction, what are all the challenges one could face while entering the Importing Country beyond Duties? | International Trade Documentations | Types of Barriers exist in the International Business, Import regulations for the products across global markets, Ensuring protection against the export rejection abraod, Import standards of India |
| Incoterms - 2020 | In order to benefit from Export Contracts, the most important terms to be mentioned is International Commercial Terms (INCOTERMS) - the Delivery Terms | International Trade Documentations | INCOTERMS 2020, Definition of Delivery, Factors Influencing the Choice of Delivery Terms, Various Types of INCOTERMS, Applicable INCOTERMS in Different Modes of Transportation, INCOTERMS and Transfer of Risks, Choosing INCOTERMS for International Trade Deal INCOTERMS 2020, Definition of Delivery, Factors Influencing the Choice of Delivery Terms, Various Types of INCOTERMS, Applicable INCOTERMS in Different Modes of Transportation, INCOTERMS and Transfer of Risks, Choosing INCOTERMS for International Trade Deal INCOTERMS 2020, Definition of Delivery, Factors Influencing the Choice of Delivery Terms, Various Types of INCOTERMS, Applicable INCOTERMS in Different Modes of Transportation, INCOTERMS and Transfer of Risks, Choosing INCOTERMS for International Trade Deal |
| International Sales Contract | International Business is fraught with Risks; which may arise due to default either by the Exporter or Importer. Both the Parties should be protected with the Legal dimensions under the Provisions of ISC by Vienna Convention | International Trade Documentations | Scope and need of Sales Contract in international trade, Implication of the clauses of the contract in EXIM operations, Risks and responsibilities associated with each clause and their meaning, To understand the difference between international and country specific contract laws Scope and need of Sales Contract in international trade, Implication of the clauses of the contract in EXIM operations, Risks and responsibilities associated with each clause and their meaning, To understand the difference between international and country specific contract laws Scope and need of Sales Contract in international trade, Implication of the clauses of the contract in EXIM operations, Risks and responsibilities associated with each clause and their meaning, To understand the difference between international and country specific contract laws |
| Documentations In International Trade | In International Business, one deals in DOCUMENTS; not the GOODS / To understand the role of Trade Documentation & Procedure involved in FT | International Trade Documentations | To understand the role of trade documentation & procedure involved in international trade, To understand the documentation practices & procedure involved in export of goods, To understand the commercial and regulatory documents used in business, To understand the various aspects of compliance and non-compliance in trade documents that may result in penalty or loss of incentives or benefits. To understand the role of trade documentation & procedure involved in international trade, To understand the documentation practices & procedure involved in export of goods, To understand the commercial and regulatory documents used in business, To understand the various aspects of compliance and non-compliance in trade documents that may result in penalty or loss of incentives or benefits. |
| Payment Mechanisms In International Trade | In the volatile International Market, any Export Transactions is a Gift to the Buyer until it gets realised / To understand th overview of various methods of Payment in FT | Banking in International Trade | Importance of Export Payments, Qualities of International Payments, Instrument of International Payments, Risks involved in Export Payments Importance of Export Payments, Qualities of International Payments, Instrument of International Payments, Risks involved in Export Payments |
| Letter Of Credit - (LC) | Under LC, the payment is not made by the Importer but by his Bank; hence the Exporter is Guaranteed for his Payments | Banking in International Trade | Parties involved in LC, Process of LC, Types of LC, Documents involved in LC, Risks in LC Parties involved in LC, Process of LC, Types of LC, Documents involved in LC, Risks in LC |
| International Trade Finance | To understand the meaning and role of Trade Finance / To describe the transformation in it due to Digital Innovation | Banking in International Trade | Meaning and Role of Trade Finance, Role of different Institutions in Trade Finance Risk Management, Changes in Trade Finance due to digital innovations, Trade Finance facilities offered by banks and other institutions |
| Credit Risk Management | Export credit insurance protects a seller from the risk of non payment by a foreign buyer. The insurance usually covers commercial risks such as buyer insolvency, country risk and so on | EXPORT RISK MITIGATION | To understand the meaning of credit risk, Comparing and analysing various types of policies issued by ECGC, The principles of ECGC operation, Procedure of taking a policy and for making a claim, Financial guarantees provided by ECGC To understand the meaning of credit risk, Comparing and analysing various types of policies issued by ECGC, The principles of ECGC operation, Procedure of taking a policy and for making a claim, Financial guarantees provided by ECGC |
| Currency Risk Management | Currency risk is the possibility of losing money due to unfavorable moves in exchange rates. Firms and individuals that operate in overseas markets are exposed to currency risk. | EXPORT RISK MITIGATION | Operational exposures and discusses the need to manage foreign exchange risk in a continually operating international business. |
| Marine Risk Management | There are several risks facing the marine industry that are not new but which are changing all the time; these include political risk, terrorism and piracy. | EXPORT RISK MITIGATION | Understand the different classes of risk covered by marine insurance: |
| Foreign Trade Regulations | Purpose and scope of FTP / Types of schemes for boosting Exports / To analyze how can the Schemes dovetail in the overall business strategy / FEMA Regulations | Governmet Export Support | Purpose and scope of Foreign Trade Policy, Types of Schemes for boosting Exports, Government interface required in EXIM, Legal aspects of FEMA Regulations Purpose and scope of Foreign Trade Policy, Types of Schemes for boosting Exports, Government interface required in EXIM, Legal aspects of FEMA Regulations |
| Export Incentives Schemes - (EIS) | Developing Countries have been using various Schemes to enable their Firms to compete in the International Market / Motto is : GOODS to be Exported ; but not the TAXES | Governmet Export Support | Export Promotion in India, Promotional Measures for Boosting Exports, Foreign Trade Policy Export Promotion in India, Promotional Measures for Boosting Exports, Foreign Trade Policy |
| Excllusive Export Enclaves | A Country cannot produce everything for the world consumption; With a dedicated Enclaves as such EOU, SEZs, EHTP, STP, BTP, it could be produced and traded by the other countries in India | Governmet Export Support | Concept / Types of Dedicated Export Enclaves, Process and Procedure of Customs Bonding of an EOU, Concept of SEZs, Procedural Formalities for Setting up of SEZ, Incentives and Facilities to the SEZs Concept / Types of Dedicated Export Enclaves, Process and Procedure of Customs Bonding of an EOU, Concept of SEZs, Procedural Formalities for Setting up of SEZ, Incentives and Facilities to the SEZs |
| Msme Promotional Schemes | Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. Get to know the opportunities that available in the MSME Sectors | Governmet Export Support | Objectives, Schemes, Services and Subsidies covered under MSME - Protecting MSME Innovations through IPR Protection |
| Packing, Labelling And Marking For Exports | Proper Packaging, Labelling and Marking not only makes the final product look attractive but also save a huge amount of money by saving the product from wrong handling in the voyage | International Trade Technical | Labelling and Marking of export consignments - Precautions in use of packaging materials - Awareness about local customs, preferences & taboos on labellingPacking - Select Cases and Success Stories |
| Export Packaging Methodology | Packaging is not merely wrapping the products; rather it is combination of Science, Art and Technology | International Trade Technical | Global Packing Industry – Sector break down, Break down of Consumption of Packaging Materia, Essential tool in product protection essential tool in product Protection, Distribution, Marketing & Distribution, Marketing & Consumer Satisfaction, Package Design, Packaging for Export, Dangerous or Hazardous Goods, UN Certification, Packaging Group, Global Packing Industry – Sector break down, Break down of Consumption of Packaging Materia, Essential tool in product protection essential tool in product Protection, Distribution, Marketing & Distribution, Marketing & Consumer Satisfaction, Package Design, Packaging for Export, Dangerous or Hazardous Goods, UN Certification, Packaging Group, |
| Quality Control & Pre-Shipment Inspection | Quality Control of Exportable Goods has become extremely pertinent / QC expedites the payment from the Importer On Time | International Trade Technical | Quality Control Defined, Role of Quality Control in Exports, Methods of Quality Control, Quality Control Measures in India, EIC of India, Inspection Process for Exportable Cargo Quality Control Defined, Role of Quality Control in Exports, Methods of Quality Control, Quality Control Measures in India, EIC of India, Inspection Process for Exportable Cargo |
| International Trade Logistics | International Trade Logistics refers to Cross Border movement of Goods in the implementation of international Shipment Plan | Shipping & Logistics Procedures | To understand the concept and various elements of international trade logistics, Packaging, Warehousing, and Material handling operations, Dynamics of multimodal transportation, The role of Dry ports, Sea ports and Shipping operations, Implementation of international shipment plan To understand the concept and various elements of international trade logistics, Packaging, Warehousing, and Material handling operations, Dynamics of multimodal transportation, The role of Dry ports, Sea ports and Shipping operations, Implementation of international shipment plan |
| Icegate | The e-Commerce Portal caters to both Cargo and Trade carriers through e-Filing Services of Country’s Customs Department Cleintele | Shipping & Logistics Procedures | Initialization of online system of Custom Clearance, Modules of ICEGATE system for Custom Clearance of Export and Import Cargo, System of online Custom Clearance of exportable and imporable cargo Initialization of online system of Custom Clearance, Modules of ICEGATE system for Custom Clearance of Export and Import Cargo, System of online Custom Clearance of exportable and imporable cargo |
| Customs House Agent - Business Opportunity | Customs House Agent (CHA) or a Customs Broker is a license holding individual that helps exporters and importers with their shipments at the customs station. To ease the process, the Government of India provides a 'Customs House Agent (CHA)' or 'Customs Broker' license to individuals who help the traders take care of all their documentation and other customs-related obligations. | Shipping & Logistics Procedures | This course is outlined for those in pursuit of better employment opportunities or independent Export-Import business. |
| Import Duty Procedures | A detailed study on various Duties applicable in India for the Imported Goods | Import Procedures | Roles of CBIC, Various types of Import Duties, Stages of imposition of Taxes & Duties, Levy of customs duty on Imports / Exports, Point & Circumstances of Levy, Assessment of customs duty on imports, CUSTOMS DUTY CALCULATION (on Imports), Types of Bill of Entry, Risks of Mis-classification, Overview of Warehousing concept, |
| Customs Clearance Of Import Cargo | All goods imported into India have to pass through the procedure of customs for proper examination, appraisal, assessment and evaluation. This helps the custom authorities to charge the proper tax and also check the goods against the illegal import. | Import Procedures | Understand the role of cutoms, usage of documents, Customs clearnce EDI process, customs clearance process |
| Execution Of Export Order | The initiation of any trade deal in International Business begins with the formation of an Export Order / To discuss the complete process of the EO is very much important in the FT Operations | International Trade Practices | Formation of an Export Order, . Negotiation, Receipt and Acknowledgement of an Export Order, Scrutiny, Examination and Clarification of an Export Order, Steps in Processing of an Export Order, Post-export Documentation for Realizing Payments and Claiming Benefits |
| High Sea Sales | High Sea Export transactions are carried out beyond the Customs Water of Country of Imports OR Exports | International Trade Practices | Overview of Sale on High Sea Process, Process of High Sea transaction, Guidelines for HSS Contract Formation |
| Ata Carnet In Export Promotions | The Carnet allows the Exporter to use a Single Document for clearing certain categories of Goods through Customs in different Countries | International Trade Practices | Role / Need / Utility of ATA Carnet in Trade Operations, Role of FICCI as NIGA for ATA Carnet |
| Merchant Trade Transactions | MTT is “Procure To & Supply To” or “Bill To & Ship To” transaction / Goods traded under MTT should never enter the Domestic Tariff Area of India | International Trade Practices | Conceptual framework of Merchanting Trade Transaction, Legal framework regulating MTT, Areas of Compliance for MTT as per RBI guidelines |
| International Marketing Logistics | Effective logistics system contributes immensely to the achievements of the business and marketing objectives of a firm. It creates time and place utilities in the products and thereby helps in maximizing the value satisfaction to consumers. | International Trade Marketing | Introduction to Marketing Logistics System - International Marketing Strategies and Logistics - Inland Transport in Overseas Trade Logistics - Warehousing - Inventory Management and Order Handling |
| E-Exim | To understand the concepts and advantages of e-Commerce EXIM Operations | International Trade Marketing | Understanding E-commerce and E-business, Advantages of E-commerce, Essentials for Venturing into E-commerce Business, Procedure for Exports through E-commerce, Trade Information System for Exporters |
| Export Promotion Ventures | Participating in Exhibitions, Trade Fairs and Expos are the excellent ways of researching and entering into the Foreign Markets | International Trade Marketing | Different types of Trade Fairs, Objectives for participating in a Trade Fair, Preparation of budget for a Trade Fair |
| International Marketing Strategy | With unprecedented Consumer Behaviours, the Business Practices are challenged! Everything is Marketing; Marketing is Everything | International Trade Marketing | Exporters of all products in the world, India's exporting markets, Challenges for Indian Exporters, Strategies for growth in IB |
| Fast Moving Exportable Products - Fmeg | What moves best to the International Markets from India - Sourcing of the Exportable Goods in the Indian Territory | International Trade Marketing | India’s most Potential Products / Countries for Exports, The demandable products in the World Market post Pandemic, The Barriers of exports, Finding of the right Buyers, India’s Export Analytics with World Bank Database |
| Success Mantra For Exports | Successful exporters are able to venture out into the world and adapt to their changing environment quickly. | International Trade Marketing | Developing export strategy and managing exports in a global environment. Market evaluation and selection; development of an export plan for market entry. Problems and pitfalls in export management |
| International Client Aquisitons | Before you export your Products, you need to find People to Buy them - Offering you the Networth Clientle Listing from various International Markets | International Trade Marketing | Choosing the best Product, Countries, To compete in the export market against the global suppliers, Evaluation of risk in the Foreign Market, Promoting the Products in the select export markets, Holding of Buyers, Logistics to reach the Buyers most efficiently |
| Global Market Identification | Target Global Market Identification is the process of selecting the groups of customers to focus on in a firm's marketing mix. Learn what it involves, its benefits, and the steps to carry out for the successful identification of your target global market | International Trade Marketing | Need for identification into International Trade - Various aspects of product market diversification - Gain fundamental awareness on compliance issues in the International Market |
Analyzing Export Propensity Index (EPI)
EPI denotes the overall degree of reliance of domestic producers on foreign markets. Higher the EPI, tendency of domestic producers to export as against selling in domestic market is predominant. Hence higher EPI would indicate acceptance of Indian exports in the world market on one hand. On the other, it also indicates less competition in the domestic market. Hence an export startup should pick up the sector with high EPI, operate for a few years in the domestic market without much competition and then plunge into the export market which in any case is promising.
Interpretation of SHI & RHI value
If you are an established firm or a start-up in the export business, you first need to check the 2 sisters SHI and RHI.
A. Sectoral Hirschman Index (SHI): SHI is calculated by mapping the value of exports against the products being exported then share is calculated for each product as a percentage of the total value of exports.
B. Regional Hirschman Index (RHI): This is calculated by mapping a specific country's exports against different destinations.
Scanning Global Market Opportunities
You need answer the following questions before you enter into any global market
A. What type of product are you selling ?
B. Is it acceptable in the global market?
C. Does it have price competitiveness?
D. Are you availing the right government schemes?
E. Are you targeting the right market?
F. Are you customizing the product as per the customers requirement?
G. What is the size of the world market for a product?
H. What are the trends for that market – i.e. is the market growing and by how much?
I. With which countries does my country currently trade for certain products?
J. Are there opportunities to identify new or alternative markets?
K. What tariff barriers exist in a specific market?
L. Which countries compete to supply to a specific market and to the world?
To understand the benefit of an RTA, we need to first understand the concept of WTO MFN status. The World Trade Organization which was signed between many countries in Jan 1995 brings forth a concept of “Most Favored Nation” which means that if the exporting country and the importing country both are WTO members then the importing country will give equal treatment to all the exporting country in terms of both tariff and non-tariff barriers.
Trade Agreement is nothing but a legal binding between two or more countries wherein the trading countries commits certain benefits only to their signing Partners which is not to be availed by countries outside the Agreement. This benefit can be extended to Goods - (in terms of offering a Lower or Zero Import Duty to the imports coming from countries within Agreement) - Services or Facilitation of investment and many more benefits.
We need to understand that the best suited market for your product will be the one where the imports are not re-exported but are imported for the purpose of domestic consumption. Only such markets make sense for you considering the sustainability of the import demand. To estimate this aspect of an importing country, we calculate an index termed as “Import Penetration Index” (IPI).
To understand the benefit of an RTA, we need to first understand the concept of WTO MFN status. The World Trade Organization which was signed between many countries in Jan 1995 brings forth a concept of “Most Favored Nation” which means that if the exporting country and the importing country both are WTO members then the importing country will give equal treatment to all the exporting country in terms of both tariff and non-tariff barriers.
Trade Agreement is nothing but a legal binding between two or more countries wherein the trading countries commits certain benefits only to their signing Partners which is not to be availed by countries outside the Agreement. This benefit can be extended to Goods - (in terms of offering a Lower or Zero Import Duty to the imports coming from countries within Agreement) - Services or Facilitation of investment and many more benefits.
An important aspect about the goods to be exported is compulsory quality control and pre-shipment inspection. For this purpose, Export Inspection Council (EIC) was set up by the Government of India under Section 3 of the Export (Quality Control and Inspection) Act, 1963.
Strategizing Export Market Options with OPOD – NPOD / OPND - NPND
The era of globalization proves that the Export and Import (EXIM) activity is crucial to any country; especially to India's economic health as India can generateadditional employment opportunities for the country through the exchange of Goods, Services and Ideas, and it also helps to bring precious foreign exchange to the nation. Greater EXIM operations mean more economic growth as natural and physical resources of the country are effectively exploited, managed, used and traded, resulting in employment generation, foreign exchange accumulations, improved living standard, capacity enhancement in manufacturing and infrastructure and increased status of the country in global economic, political and social issues.
The FTP of India is also shaped for making India a global manufacturing, trading and services hub. To compete in world trade; our government has given some schemes to import raw materials, capital goods without paying duties and other taxes to our exporters; such as Advance Authorisation Scheme, Duty Free Import Authorisaton, Export Promotion Capital Goods, Duty Drawback and so on.
The next step of an entrepreneur should be to quickly view the Foreign Trade Policy of India and check the status of his product.
A. OGL: OGL stands for Open General License: In case your product is listed in this category, you are free to export following the guidelines detailed in chapter 2. FTP indicates “Exports and Imports shall be ‘Free’, except when regulated. Such regulation would be as per FTP and/or ITC (HS’). Prefer to choose the product under this category to avoid any hassle.
B. Restricted: These are the products Permitted to export subject to licensing. These goods may be exported or imported only in accordance with a license issued in this behalf.However, there are separate sets of items which may be exported without a license but subject to terms and conditions specified in the Handbook of Procedures List of such products is listed in Annexure II.
C. Canalized items: These are the products exports of which are permitted ONLY through Canalizing Agencies specified in the negative lists. The agencies include MMTC for gold, NAFED and STC for agro products including onion, rice, wheat etc. DGFT may, however, grant the license to any other person to import or export any canalized goods.
D. Prohibited Goods: The term “Prohibited Goods” has been defined in sub-section 33 of Section 2 of the Customs Act thereby meaning “any goods the import or export of which is subject to any prohibition under the Customs Act or any other law for the time being in force”. Import and export of some specified goods may be restricted/ prohibited under other laws such as Foreign Trade (Development& Regulation) Act, Foreign Trade Policy, Environment Protection Act, Wild Life Act, The Foreign Exchange Management Act, The Trade Marks Act, Arms Act, Drugs OGL Restricted Canalised Prohibited 14 & Cosmetics Act, etc. Prohibitions under those Acts will also be treated as Prohibitions under the penal provisions of the Customs Act, rendering such goods liable to confiscation under section 111(d) of the Customs Act (for import) and 113 (d) of the Customs Act (for export).
Analyzing of Import Penetration Index (IPI)
We need to understand that the best suited market for your product will be the one where the imports are not re-exported but are imported for the purpose of domestic consumption. Only such markets make sense for you considering the sustainability of the import demand. To estimate this aspect of an importing country, we calculate an index termed as “Import Penetration Index” (IPI).
If you are an established firm or a start-up in the export business, you first need to check the 2 sisters SHI and RHI.
A. Sectoral Hirschman Index (SHI): SHI is calculated by mapping the value of exports against the products being exported then share is calculated for each product as a percentage of the total value of exports.
B. Regional Hirschman Index (RHI): This is calculated by mapping a specific country's exports against different destinations.
EPI denotes the overall degree of reliance of domestic producers on foreign markets. Higher the EPI, tendency of domestic producers to export as against selling in domestic market is predominant. Hence higher EPI would indicate acceptance of Indian exports in the world market on one hand. On the other, it also indicates less competition in the domestic market. Hence an export startup should pick up the sector with high EPI, operate for a few years in the domestic market without much competition and then plunge into the export market which in any case is promising.
A geographical indication (GI) is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. In order to function as a GI, a sign must identify a product as originating in a given place.
Choosing the right product to be exported by an entrepreneur is the first intelligent step he needs to take. For this, the Harmonized System of code needs to be identified. HS stands for Harmonized Commodity Description and Coding System. The HS is the international standard for reporting goods to customs and other government agencies. It is a numeric language that is used by more than 180 countries worldwide, and almost 100% of international trade.
