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8/6/2019 Session 1 2 3 Itpd Final Vijesh Jaain
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Introduction & Overview to International
Trade Procedures and Documentation
Prof. VijeshJain,ITS, Mohan Nagar
for
PGDM Batch 10-12
8/6/2019 Session 1 2 3 Itpd Final Vijesh Jaain
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Why do u need documentation &
procedure in International transactions
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8/6/2019 Session 1 2 3 Itpd Final Vijesh Jaain
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Areas of documentation and procedure
Company Formation related
Distribution and transport related.
Local Govt. related.
Complying with the laws.
Inspections and verifications.
EXIM Policy related.
Foreign Govt. related.
Payments/Finance related.
Safety and insurance related.
Incentives related.
International regulations related. Export transaction related procedures.
8/6/2019 Session 1 2 3 Itpd Final Vijesh Jaain
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Typical Export Procedure
� Steps for exporting
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Importance of exact procedure and
documentation
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Importance of exact procedure and
documentation
� Avoid problems related to smooth flow of
goods
�Timely proceeds
�To maintain a good relationship with thebuyers
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How to make sure all are happy?
The documents must be meticulously prepared.
The time frame for filing the documents withintermediaries and govt. authorities must be
adhered to. L/C terms must be carefully drafted (in the contract)
and understood.
The person, chosen for carrying
out the above documentation andprocedure must be thorough with
the export documentation and
must possess the desired skills in
this regard
8/6/2019 Session 1 2 3 Itpd Final Vijesh Jaain
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Tasks of the Trade Doc & Procedure
� Compliance with the home country¶s legalframework
� Arranging the export finance after the receipt of theorder
� Readying the goods for export
� Appointing a C&F agent
� Arranging the cargo insurance & shipping space(by sea or by air)
� Delivering the goods and documents to the C&Fagent
� Customs and port procedures� Preparing post shipment documents for submission
to the bank,
� Receiving the payment
� Receiving export incentives, refunds etc where
applicable.
8/6/2019 Session 1 2 3 Itpd Final Vijesh Jaain
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Legislations governing international trade
Foreign Trade(Development andRegulation) Act, 1992
Export- Import Policy of India and Handbook of Procedures (by DGFT
Customs Act, 1962
Foreign Insurance act.1938
Marine Insurance Act 1963
Central Excise act 1944
etc.
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Legislations governing international trade
� Includes internationalcommercial practices andlaws such as:
Uniform Customs andPractices for Documentary Credit(UCPDC), 1993
The carriage of Goods bySea Act, 1924
The InternationalCommercial Terms, 2000etc.
8/6/2019 Session 1 2 3 Itpd Final Vijesh Jaain
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Typical Export Transaction Framework
8/6/2019 Session 1 2 3 Itpd Final Vijesh Jaain
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C A1/ITPD/2010-12
� Study and write down the names of several export
documents which are used in the international
business transactions.
8/6/2019 Session 1 2 3 Itpd Final Vijesh Jaain
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Conclusion
The export procedures and documentation is an
integral activity of international marketing
process.
In an export transaction, the seller and the buyer is governed by a complex set of regulatory
framework of their own countries.
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Conclusion
A thorough understanding of the regulatoryrequirement not only of the home country butalso the destination country is essential for aninternational marketer.
Information technology has helped speed up thedocumentation process and makes it easier for an exporter to carry out all formalities in his owncountry as well as if required in the host country