Prasanna Srinivasan

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Exports- Basics Marketing
Prasanna Srinivasan
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INSTITUTIONAL SUPPORT

• Central Govt
• State Govt
• Chamber of Commerce
• Trade Promotion Organisations

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PRELIMINARIES FOR STARTING EXPORT BUSINESS
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PRELIMINARIES FOR STARTING EXPORT BUSINESS

• Firm or Company

• Bank Account

• Permanent Account Number

• Importer Exporter Code No (IEC) from the
  Regional office of the DGFT

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FACTORS AFFECTING EXPORT BUSINESS

• 1. External factors
• Trading Systems
• Bilateral Trade
• Regional Trading Blocs
• Multilateral Trading System

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FACTORS AFFECTING EXPORT BUSINESS

• 1. External factors
• LPG Factor
• Trade policy
• Industrial Policy
• Global village
• Small business concept
• Services concept

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FACTORS AFFECTING EXPORT BUSINESS

• 1. External factors
• ICT factor
• Emails, websites, B2B, B2C,
• Access to market information and markets
• Risk insurance agencies

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FACTORS AFFECTING EXPORT BUSINESS

• 2. Internal factors
• Quality Systems
• Capacity Building- Volumes
• Knowledge about markets/importers
• Knowledge about export procedures formalities

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• You can export as either
• Manufacturer Exporter or
• Merchant Exporter or Both

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• How to identify buyers?
• You can adopt either Product focus (usually
  manufacturer exporters)
• Or Market focus (usually merchant exporters)

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EXPORT MARKET INFORMATION SOURCES

• Export Promotion Councils
• Indian missions
• Contacts
• Internet - www.alibaba.com, www.indiamart.com,
• www.tradeindia.com, etc.,
• Exhibitions/Trade fairs
• Chambers of Commerce/ Trade promotion
  organizations

commerce.nic.in
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INCOTERMS 2000
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INCOTERMS 2000
The 13 Incoterms Incoterms 2000 describe the
responsibilities of seller and buyer in
international trade.
1. EXW EX WORKS (... named place)
2. FCA FREE CARRIER (... named place)
3. FAS FREE ALONGSIDE SHIP (... named port of
shipment)
4. FOB FREE ON BOARD (... named port of
shipment)
5. CFR COST AND FREIGHT (... named port of
destination)
6. CIF COST, INSURANCE AND FREIGHT (... named
port of destination)
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INCOTERMS 2000
7. CPT CARRIAGE PAID TO (... named place of
destination)
8. CIP CARRIAGE AND INSURANCE PAID TO (... named
place of destination)
9. DAF DELIVERED AT FRONTIER (... named place)
10. DES DELIVERED EX SHIP (... named port of
destination)
11. DEQ DELIVERED EX QUAY (... named port of
destination)
12. DDU DELIVERED DUTY UNPAID (... named place
of destination)
13. DDP DELIVERED DUTY PAID (... named place
of destination)
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COMMON PAYMENT TERMS
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COMMON PAYMENT TERMS

• Advance Payment
• Documents against payment
• Documents against acceptance
• Open terms

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COMMON PAYMENT TERMS

• Letter of Credit
• LC at Sight
• Usance Bill

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COMMON PAYMENT TERMS
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UNDERSTANDING RISKS IN INTERNATIONAL TRADE
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UNDERSTANDING RISKS IN INTERNATIONAL TRADE
While selling abroad, you undergo the following
risks and manage them as follows
1. Credit risk - ECGC cover
2. Currency risk - Forward Cover
3. Carriage risk - Marine Insurance
4. Country risk - ECGC cover
We also have the EXIM Banks Lines of Credit
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UNDERSTANDING RISKS IN INTERNATIONAL TRADE
But there is no cover for the following risk !
Non Performance Risk!!
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Thank You
ps_at_fkcci.in
91 9986043824