Presentation on Import and Export

Presentation on Import and Export

ContentsDefinationBalance of TradeTypes of Import & ExportExport Import ProcessAdvantages & Disadvantages of ImportAdvantages & disadvantages of ExportModes of PaymentEXIM BankSupport Institutes to Facilitate ExportOCTROIECGCExcise DutyCustom duty

Defination :-Import :-The Term Import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an Importer.

Defination :-Export :-The term Export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an Exporter.

Balance of TradeBalance of trade represents a difference in value for import and export for a country.A trade deficit occurs when imports are large relative to exports.Imports are impacted principally by a countrys income and its productive resources.

Types of ImportTwo types of Import :-Industrial and Consumer goodsIntermediate goods and services

Types of ExportsPhysical Exports :- If goods physically go out of the country.Deemed Exports :- If goods and services are supplied to another entity.

Export Import Process

Advantages of ImportReduce dependence on existing marketsExploit international trade technologyExtend sales potential of existing products

Disadvantages of ImportImportation of items from other countries can increase the risk of getting them which is no more common in the warm weather.It leads to excessive competition.It also increase risk of other diseases from which the country is exporting the goods.

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Advantages of ExportExporting is one way of increasing your sales potentialReducing risk and balancing growthGain knowledge & ExperienceIncreasing sales & profitSales excess production capacity.

Disadvantages of ExportsExtra costsFinancial riskMarket informationExport licenses & document

Modes of Payment In order to complete the export process, the payment of the exported goods has to be received by the exporters. An Exporter can receive the exports proceeds as :-Advance paymentPayment against documentary billsPayment against documentary bills under letter of credit

Export-Import Bank of Indiais the premierexport finance institution in India, established in 1982 under the Export-Import Bank of India Act 1981.Since its inception, EXIM Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment. Commencing operations as a purveyor of export credit, like other Export Credit Agenciesin the world, EXIM Bank of India has, over the period, evolved into an institution that plays a major role in partnering Indian industries, particularly the Small and Medium Enterprises, in theirglobalisationefforts, through a wide range of products and services offered at all stages of the business cycle, starting from import of technologyand exportproduct developmentto export production,export marketing, pre-shipment and post-shipment and overseas investment.

EXIM BankEXIM bank of India has been the prime mover in encouraging project exports from India.The bank extends lines of credit to overseas financial institutions, foreign governments & there agencies, enabling them to finance imports of goods and services from India deferred credit terms.The bank has launched the Rural Initiatives Programme with the objective of linking Indian rural industry to the global market. The Programme is intended to benefit rural poor through creation of export capability in rural enterprises.

Support Institutions to facilitate ExportsSome of these institutions are :-Export Credit Guarantee Corporation (ECGC)EXIM Bank of IndiaIndia Trade Promotion organisation (ITPO)Export Inspection Council (EIC)Indian Institute of Packaging (IIP)

OCTROIThe state government Levies the OCTROI charges when the product enters the state. This charge is applicable to certain states and fluctuates as per the government regulations and we are unable to conform the amount.

ECGCTheECGC Limited(ECGC) was established on 30 July 1957 with an objective to provide insurance cover in respect of risks in export trade. These risk may include loss of money on account of foreign buyer becoming bankrupt or sudden import or exchange restrictions resulting in stopping of payments etc. The Export Credit Guarantee Corporation of India Limited is a company wholly owned by theGovernment of Indiabased inMumbai,Maharashtra.It provides export creditinsurancesupport to Indian exporters and is controlled by theMinistry of Commerce.Government of India had initially set up Export Risks Insurance Corporation (ERIC) in July 1957. It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983. In 2014 August, the Company was again renamed as ECGC Limited.

What does ECGC do..???Provides a range of credit risk insurance covers to exporters against loss in export of goods and services.Offers Export Credit Insurance for Bankers and financial institutions to enable exporters to obtain better facilities from them.

Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan.

Excise DutyIn India, an excise is described as an indirect tax levied and collected on the goods manufactured in India.

Custom DutyCustomsis anauthorityoragency in a country responsible for collectingcustoms dutiesand for controlling the flow of goods, including animals, transports, personal effects, andhazardous items, into and out of a country. The movement of people into and out of a country is normally monitored by immigration authorities, under a variety of names and arrangements. The immigration authorities normally check for appropriate documentation, verify that a person is entitled to enter the country, apprehend people wanted by domestic or internationalarrest warrants, and impede the entry of people deemed dangerous to the country.

Thank youSubmitted to :- Dr. AartiSubmitted by :- Anjali