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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 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.

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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

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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.

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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.

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Typical Export Transaction Framework

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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.

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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