Trade has been around for ages. A significant aspect of the human experience has been the import and export of products. A nation produces exports to sell on international marketplaces. On the other hand, imports are any goods that are carried into one nation from another. In a more modern setting, we can now buy practically anything from anywhere in the world.
TOP IDEAS OF IMPORT-EXPORT BUSINESS
Clothing
Leather products
Spices
Handicrafts
Heavy machinery
Coal
Footwear
Custom broker
Custom warehousing
Chemicals
Raw ingredients
Textiles
Pharmaceuticals
Jewellery
Petroleum products
Cosmetics
HOW TO START AN IMPORT EXPORT BUSINESS
Establishing an organisation
Opening a bank account
Obtaining permanent account number(PAN)
Obtaining importer-exporter code(IEC)
Registration cum membership certificate(RCMC)
Selection of a product
Selection of a market
Finding buyer
Pricing/costing
Negotiation with buyer
Covering risk through Export Credit Guarantee Corporation Ltd.(ECGC)
WHAT DOCUMENTS DO I NEED TO IMPORT-EXPORT BUSINESS
Import Documents:
Bill of Lading
Packing list
Commercial invoice
Certificate of inspection
Certification of origi
Bills of exchange
Airway Bill
Letter of credit
Customs bond
Import licence
Export Documents:
Pro forma invoice
Export packing list
Air waybill
Bill of lading
Certification of origin
Certification of conformity
Export licence
Shipping instruction
Insurance Declaration
Shipping order
Mate’s receipt
TYPES OF IMPORT AND EXPORT BUSINESS
EXPORT TRADING COMPANY
Export-oriented businesses receive support from export trading corporations (ETCs).
Export trade associations also handle the legal ramifications of exporting a variety of goods.
Additionally, export trading companies find local companies that can export goods to foreign buyers in need of those goods
EXPORT MANAGEMENT COMPANY
A privately held company that serves as an export department for several non-competing suppliers and manufacturers is known as an export management business.
In addition, the EMC may designate sales agents in importing countries, promote its clients’ goods and services, plan shipping, provide warranties and post-purchase assistance, and offer import credit.
Additionally, EMC offers services to export-oriented businesses. They handle all aspects of the export business’s operations, including locating buyers and suppliers, organizing logistics, and more.
IMPORT/EXPORT AGENT
In the import-export industry, brokers and agents help importers and exporters prepare the necessary documentation for imports and exports. Additionally, clients may gain from their help in connecting with foreign companies.
An agent provides fewer services and does not assume ownership of the goods, in contrast to a distributor. The agent’s primary goals are to receive orders and get paid for his services.
PROCEDURES OF IMPORT EXPORT BUSINESS
IMPORT PROCEDURES
SETTING MARKET OBJECTIVE
SOURCING PRODUCT
TRADE REGULATIONS
MAKING CONTACTS
SETTLING QUOTATION AND TERMS
FINANCING THE PURCHASE
SALES CONTRACT
PREPARING PAYMENT AND INSURANCE
ACQUIRING GOODS
CUSTOMS CLEARANCE
EXPORT PROCEDURES
MARKET RESEARCH AND SETTING OBJECTIVES OF DISTRIBUTION
TRADE REGULATION
MAKING CONTACT
QUOTATION AND TERMS
SALES CONTRACTS
CONTRACT EXECUTION
CUSTOM CLEARANCE
GETTING PAID
WHAT IS AN IMPORT-EXPORT LICENCE
In this age of intense competition, everyone wants to take their business outside of their native market. These days, doing business globally is easier because of technological advancements like the internet. However, before taking your business global, you have to follow a lot of guidelines and get all the required permits and registrations. Authorization for the import or export of an Import Export Code (IEC) is one of these prerequisites if you’re considering importing into or exporting from India. It is often referred to as the Importer-Exporter Code.
CONCLUSION
In summary, the import-export industry is essential to the global economy because it makes cross-border trade in commodities and services possible. Countries may acquire a wide range of products, promote economic progress, and create job opportunities through this dynamic trade activity. But managing the intricacies of global trade necessitates paying close attention to laws, consumer patterns, and logistical issues. Effective supply chain management, smart alliances, and thorough market research are frequently essential to success in this sector.
Unless specifically exempted, a person/entity cannot export or import without obtaining an IEC. IEC is not required for the export of services unless the service provider is benefiting from the Foreign Trade Policy. Obtaining an Import Export Code (IEC) is a prerequisite for anyone wishing to begin an import/export firm in the nation.