Sample Copy. Not For Distribution. · like India, the current scenario of the Export and import in India, Categories of Exporters and Preliminaries of starting an Export and Import

Sample Copy. Not For Distribution.

i

Export and Import Procedures

A Guide to International Business


ii

Publishing-in-support-of,

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© Copyright, 2018, Jignesh Vidani

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Printed in India


iii

Export and Import

Procedures

A Guide to International Business

Jignesh Vidani

EDUCREATION PUBLISHING (Since 2011)

www.educreation.in


iv


v

INDEX

Sr. Contents Page

Preface I

Acknowledgement II

01 Introduction to Export and Import

Businesses

1

02 Preliminaries for starting Import

Business

8

03 Preliminaries for starting Export Business 22

Exercise 58

04 Registration of Importers 59

05 Registration of Exporters 66

06 Import Policy and Licencing Procedure 76

07 Export Policy and Licencing Procedure 80

Exercise 86

08 Excise Procedure 87

09 Arranging Finance for Import 97

10 Arranging Finance for Export 100

Exercise 116

11 Payment for Import of Goods 119

12 Receipt of Payment for Export of Goods 124

14 Government Support for Enhancing

Exports from India

131

Exercise 142

Practise Test and Exam (Question

Papers)

143

Past Year GTU Question papers 146


vi

List of References


vii

Preface

This book is the work of almost 3.5 years of my academic career.

The book focuses on the way of starting a new export and import

business.

The entire book is divided into four main modules. The 1st module

discusses about the role of export import in developing country

like India, the current scenario of the Export and import in India,

Categories of Exporters and Preliminaries of starting an Export and

Import Business in India.

The 2nd module discusses about the registration process of

Exporters and importers, registration with Export Promotion

council, Registration cum membership certificate, registration with

government bodies relating to the Export and import business.

The 3rd module discusses about the detailed registration process of

central excise, assessment of the central Excise, mode of payment

of central excise, CENVAT credit, arranging for the import finance

and export finance and the EXIM bank.

The 4th Module discusses about the Scrutiny of the Import and

export documents, Methods of payment, Exchange rate, forward

market, Custom Clearance of imported goods, Agri Export zone,

100% Export oriented units, Export Processing zones, Special

Economic zones, Port trusts, Service exports, Service Export

Councils and FEMA Act

Each unit comprises of a list of terms and practice questions. It also

has past GTU Papers for the practice of the students. The book is

worth for the bachelor level and even few master level students

who learn Export and import Procedures and International

Business.


viii

Acknowledgement

The Phenomenon remains same that no book ever can be executed

proficiently and efficiently without sharing the meticulous ideas,

managerial expertise and innovative thoughts put forwarded by the

Managerial and non-Managerial veterans.

Knowledge in itself is a continuous process. At this moment of my

substantial enhancement, I rarely find enough words to express my

gratitude towards those who were constantly involved with me. I

would like to place on records our grateful thanks to people who

have helped me through the successful completion of my 2nd

Book.

In this regard I would like to express deep gratitude to my Faculty

members Dr. Siddarth Bist, Dr. Neha Mehta and Dr. Meetali

Saxena for sharing their Support and Motivation whenever needed.

I want to express our appreciation for the continuous and sincere

support of all my Friends, Colleagues and my dear students for

their timely support and motivation.


ix




1

Chapter 1

Introduction to Export and

Import Businesses

Importance/Role of foreign trade in economic development of

countries Introduction of foreign trade

There is no country in the world today which produces all the

commodities it needs. Every country, therefore, tries to produce

those commodities in which it has comparative advantage. It

exchanges part of those commodities with the commodities

produced by other countries relatively more efficiently. The

relative difference in factor endowments, technology, tastes etc,

among the nations of the world have greatly widened the basis of

international trade.

ROLE OF FOREIGN TRADE IN ECONOMIC DEVELOPMENT

The role of foreign trade can be judged by the following faces:


Jignesh Vidani

2

Foreign trade and economic development

Foreign trade plays very important role in the economic

development of any country. Pakistan also exports a lot of

agricultural product to other countries and imports the capital

goods from other countries. Therefore, it is not wrong to say that

economic development of a country depends of foreign trade.

Foreign exchange earning

Foreign trade provides foreign exchange which can be used to

remove the poverty and other productive purposes.

Market expansion

The demand factor plays very important role in increasing the

production of any country. The foreign trade expands the market

and encourages the producers. In Pakistan home market is very

limited due to poverty. So it is necessary chat we should sell our

product in other countries.

Increase in investment

Foreign trade encourages the investor to increase the investment to

produce more goods. So the rate of investment increases.

Foreign investment

Besides the local investment, foreign trade provides incentives for

the foreign investors to invest in those countries where there is a

shortage of investment.

Increase in national income

Foreign trade increases the scale of production and national

income of the country. To meet the foreign demand we increase

the production on large scale so GNP also increases.



3

Decrease in unemployment

With the rise in the demand of goods domestic resources are fully

utilized and it increases the rate of development in the country and

reduces the unemployment in the world.

Price stability

Foreign trade helps to bring stability in price level. All those goods

which are short and prices are increasing can be imported and

those goods which are surplus can be exported. There by stopping

fluctuation in prices.

Specialization

There is a difference in the quality and quantity of various factors

of production in different countries. Each country adopts the

specialization in the production of those commodities, in which it

has comparative advantage. So all trading countries enjoy profit

through international trade.

Remove monopolies

Foreign trade also discourages the monopolies. Where every any

monopolist increases the prices, government allows the import of

goods to reduce the prices in the country.

Removal of food shortage

India is also facing the food shortage problem. To remove the food

shortage India has imported the wheat many times. So due to

foreign trade we are solving this problem for many years.


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Sample Copy. Not For Distribution. · like India, the current scenario of the Export and import in India, Categories of Exporters and Preliminaries of starting an Export and Import