Types of Export goods

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Exporting


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Categories of good for export

Prohibited goods

Restricted goodsCanalised Goods

Free Goods


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Prohibited goodsThese goods are not permitted to

be exported. An export license will

not be given in normal course forgoods in the prohibited category.

E.G., Narcotic Drugs, Antiquities,

Aero models, Human Skeleton etc.


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Restricted goodsThese goods can be permitted for

export under and / or are subject to

compliance of stipulatedprocedures / conditions.

E.G., Fire arms and ammunition,

Live birds or animals, Gold or

silver, Medicines etc.


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Canalised goodsThese goods are permitted to

be exported through state

trading enterprises (STE).

E.G., Petroleum products, Mica

Waste, Mineral ores etc.


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Free goods

Free goods are other

than those indicated inthe export licensing

schedule and are freelyexportable.


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Methods of Exporting

There are two types of

exporting and one exporter

can opt for any one of them:

Direct Exporting

Indirect Exporting


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Types of direct exporting

There are two types of directexporting and those are:

Sales representatives - that represent

foreign suppliers/manufacturers in their localmarkets for an established commission on

sales. Provide support services to a

manufacturer regarding local advertising,

local sales presentations, customs

clearance formalities, legal requirements.


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Types of direct exporting

There are two types of directexportingand those are:

Importing distributors - purchase

product in their own right and resell

it in their local markets to

wholesalers, retailers, or both.


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Advantages of direct exporting

+ Control over selection of foreign markets

and choice of foreign representative

companies;

+ Good information feedback from target

market;

+ Better protection of trademarks, patents,

goodwill, and other intangible property;+ Potentially greater sales than with

indirect exporting.


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Disadvantages of direct exporting

- Higher start-up costs and

higher risks as opposed to

indirect exporting;- Greater information

requirements;- Longer time-to-market as

opposed to indirect exporting.


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In the next class we will start

discussion from Indirect Exporting

Types of Export goods

Documents

Transcript of Types of Export goods