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Monday 6 January 2020

Directorate General of foreign trade


Directorate General of foreign tradeIt is an agency of the ministry of commerce and industry under the government of India. It is a body under the Ministry of Commerce and it is an industry of India. This agency is headed by the director-general of foreign trade. The directorate general of foreign trade is responsible for administrating laws regarding foreign investment and foreign trade in India. The role of this office is to facilitate, promote and regulate the export and import. 



This agency is responsible to implement necessary laws, to issue export licenses, develop trade relationships with other nations and to introduce trade incentives along with keeping the country’s objectives of increasing exports in mind. 

This agency has two types of office and these are Regional authority and zonal offices.
Now here in this article, we are heading towards important roles and functions of directorate general of foreign trade.

Important functions and roles of directorate general of foreign trade:


· It is responsible to implement EXIM Policy and foreign trade policy.
· It also implements foreign trade procedures.
· This agency is responsible to issue IEC code to exporters and importers.
· This agency documents and maintains the classification of ITC-HS codes.
· This is an agency that grants export licenses for restricted items.
· It also promotes trades.
· This is the agency that informs about goods that you can or cannot export freely under export Policy Schedule 2.
· It provides a platform for updating eBRC.
· It controls DEPB rates.
· It also regulates the transit of goods.
Implement EXIM Policy or foreign trade policy
It can be defined as a set of guidelines and instructions that are related to the import and export of goods that are developed by the directorate general of foreign trade. The main objective of this policy is to motivate exporters in the country and thus helps the country to increase exports and maintain a favorable balance of payments positions. 

Directorate general of foreign trade


Implement foreign trade procedures
The directorate general of foreign trade formulates and announces foreign trade procedure and it needs to be followed by exporters and importers to implement the provision of foreign trade act and foreign trade policy. The main objective is to lay down simple EDI compatible procedures that you can easily understand and these are user-friendly for efficient execution of foreign trade in the nation. 

Issue IEC Code to Exporter and importers 

This code is a must for all import and export businesses in India. This code is a unique 10 digit registration code that is issued by the directorate general of foreign trade. This code will help you in tracking and managing the shipment of your exporter and importer. Nowadays this IEC code is integrated with PAN and only a single IEC code can be issued against one PAN. 

Document and Maintain Classification of ITC-HS codes
These codes are based on the International Harmonized system of coding and it was adopted in India for facilitating foreign trade. In trading activities, Indian customs use 8 digit ITC HS code and these codes are divided into two schedules. Schedule 1 is for import activities while Schedule 2 is for export activities. The directorate general of foreign trade carries any changes or addition like changes in the description of the commodity, adding new codes, removing defunct codes and many more. 

A platform for updating and viewing eBRC

Bank realization certificate or eBRC is issued by banks to exporters and thus they can claim benefits under various export promotion schemes under the foreign trade policy. The directorate general of foreign trade introduces eBRC modules to promote paperless trade. This scheme is for the bank to electronically transmit foreign exchange realization directly to the exporter’s account. 
An exporter need to follow some steps for viewing his eBRC and here are these steps:

· First of all, you need to go to DGFT’s website and then select “View and print your eBRC”.
· Then to access the eBRC details, you need to enter your IEC code and IFSC code of the bank whose eBRC you wish to view and where your drawback amount or forex has been realized. After filling these details, you have to click on “Show details”.
· The website will show you a list of all eBRC uploaded by the bank.
· After this, you are allowed to download each eBRC by clicking on print. 

We advise you to print 4 copies of each eBRCs as they might be not available later on because of constant server updations.

Inform about goods that can or cannot be exported freely under export Policy schedule 2

According to schedule 2- an export policy that is formulated by the directorate general of foreign trade, all goods other than those that are listed in the export licensing schedule along with its appendices are free exportable. All exports are free, only except when they are regulated by the path of any “Prohibition”, “Restriction” and “STE”.

Grant Export Licenses for restricted items.

All those items that are defined as restricted in the export policy, are permitted for export subjects to license that is granted by the directorate general of foreign trade. You can apply for a license for these items online on the website.

Promote Trade
This agency also plays an important role in launching several export promotion schemes like MEIS, Advance authorization schemes, SEIS, duty-free import authorization scheme, export promotion of capital goods scheme, export-oriented units scheme, deemed exports, etc. The procedure to apply for these schemes has been outlined under foreign trade procedure and all these schemes have been implemented under foreign trade policy. 

Facilitate application for MEIS
The directorate general of foreign trade facilitates claims rewards under MEIS to exporters with the help of an online application system. You can fill the MEIS application online by using the digital signature with the concerned RA in form ANF 3A. You need to link relevant shipping bills and e-BRC in the application. 

Control DEPB Rates

DEPB is an export incentive scheme that is regulated by the directorate general of foreign trade. Under it, the exporters are incentivized on the customs duty paid on import od goods like raw materials which will be further exported.

Regulate Transit of Goods
This agency regulates the transit of goods from or to India according to bilateral treaties in effect between India and other countries.

Saturday 28 December 2019

Import-Export Business


Import-export businessIn the first, the question arises, what is an import-export business?
An Import-export business can be described as a company that will provide you facility for trades of goods and commodities between domestic and foreign companies. We can also say that the import-export business is a company that purchases goods internationally and then ships them for domestic purchases and also vise Versa. 



Import-export business can be defined as a business that is primarily an expansion of trade boundaries wherein several business models exist. 

This Import-export business is also similar to conventional business where any person with requisite Export/ import license can sell his manufactured goods to a client abroad. The person can also act as an intermediary between the local manufacturers and oversea buyers and vise Versa.

The person can also purchase goods that produced abroad and then sell them in the native market. 

Nowadays, the import-export business has become unique because of the involvement of various stakeholders and risks that do not come into the picture with domestic trade. 

Let’s understand the import-export business with the help of an example.

Assume Potato fries is an Indian company and it produces french fries. This company imports potatoes from the United States and produce fresh and hand-cut potatoes. This company has been doing very well. Now the owner of the company wishes to expand their business and look for possible buyers abroad. After finishing sample testing, initial discussion, and price negotiation, Potato fries have finalized an overseas buyer for their products by Import-export business.

With the order from the buyer, Potato fries produce the batch of fries and now it is ready to ship. 

Now understand the difference with overseas business.
Potato fries also has some additional issues that need to be addressed. These issues are custom regulations, the expiry date or longevity of the product, the transport mode, counterparty default risk, in- transit insurance, etc are some of the checkpoints that this company needs to be adept with. 

Potato fries company also needs to understand the international food rules, guidelines, and laws for shipping consumable overseas. The company may need a license that foreign countries impose on the business that ships well into their countries. As Potato fries figure out all these obstacles, now he will be able to export his products around the world. 

Now again there a question arise, How to start an import/ export business?

There are six crucial steps that you need to follow to start an import/ export business. These steps are:
· First, you need is to register your business.
· Now pick any product.
· Now search for source suppliers.
· The next step is to price the product.
· After this, you need to search for your consumers.
· The last step is to get the logistics down. 

Starting an Import-export business

If you wish to start an import-export business, then the market is full of opportunities. You need to make tons of consideration in your mind. It helps start the import-export business if you are having a background in business, global finance, and international relations. You must have an understanding of myriad hoops to buy or sell any product from an overseas supplier.   

·      Get your Business Basics in Order:

If you wish to start any business, you need to cover certain bases like creating and designing websites as well as social media channels like twitter, facebook and many more. 
So your first step is registering your business with the state where you wish to have your headquarter. Then you have to register a domain name, get any business license that you need for legal operation. 

You also need to have a business plan. The business plan also covers how to handle the rules and regulations of the markets where you want to work in. 
The most important thing that you need to access is the capital. The cost of a startup can vary greatly depends on the type of import and export business that you started. There is a requirement of money to make money. So keep this statement in your mind when you are getting started. 

·      Pick any product to import and export:

Another step in starting Import-export business is to search for a product or industry you are passionate about. Decide the product that you could sell in the international market.   

·      Source your suppliers
After deciding your product, your next step is to find a local manufacturer or many other producers that can produce your products and can lead to a strong partnership. 

·      Price your product
Now as you have decided, that what kind of product you want to sell. Now its time is to identify your target price. The next step is to figure out how much to charge. 

There are two key understandings in any import/ export business and these are the volume of units sold and the commission made on that volume. 
Before pricing your product, you must make sure that your markup on the product does not exceed what a customer is willing to pay. But don’t even make it too low that you are not going to make a profit. 

·      Find your customer

Another step in starting the import-export business is finding customers to sell to. For the import-export business, you usually need to find distributors and clients who will be able to take on your products and sell to others. 

·      Get the logistics Down

The most complicated steps in starting an Import-export business are the logistics of taking any product created somewhere and selling it somewhere else. It is a good idea to hire a global freight forwarder for all import/ export businesses as this freight forwarder will serve as a transport agent for moving cargo and will also help you to save your lot of time and worry about your product and goods from the factory to a warehouse. They will also help you to arrange the shipping agreement, insurance, and license, permits, tariffs, and quotas of working within another country. This will remove much of the headache associated with starting an import-export business in the international trade market. 

Final words   

So here we discuss import and export business that trades goods and services across the geographical border of the country. Please do like, share and comment on your review about the above article on import and export business. 
  Thank you    

Thursday 26 October 2017

Why should I learn the import-export trade?

Why should I learn the import-export trade?



Import-Export is a new industry for today’s youth. First question for all the new applicant or students that why should I learn the import-export trade. There is an important reason that why should you learn the import-export trade. In India, there is less number of people who trade with another country. They import or export goods from other countries. There are many options for the students who want to work with big Import-Export companies in India or MNC companies.
There is two things that make your mind to do the import-export course. First is to do jobs with MNC companies and the second thing is that who want to export or import goods. The first reason is common but the second thing is rare. So today we explain to you that why should you learn the import-export trade.


Benefits of Import Export trade



First thing is that if a student learns this course from any good institute then he or she will get a job in the good company and start their career with that company.
jobs opportunity



The second benefit that a person wants to start his or her career in import-export then he or she learns the import-export course and use the knowledge with your starting export or import business.
export business

There are many benefits that government gives to the Indian exporter. Indian government helps the Indian exporter by promoting their business. There are some benefits below which provides the Indian government.


  • Merchandise Exports from India Scheme (MEIS)
  • Advance Authorization Scheme
  • Advance Authorization for annual requirement
  • Duty Free Import Authorization (DFIA) Scheme
  • Duty Drawback of Customs/Central Excise Duties/Service Tax
  • Rebate of Service tax through all industry rates
  • Zero duty EPCG scheme
  • Post Export EPCG Duty Credit Scrip Scheme
  • Towns of Export Excellence (TEE)
  • Rebate of duty on “export goods” and “material” used in manufacture of such goods
  • Export of goods under Bond i.e. without payment of excise duty
  • Market Access Initiative (MAI) Scheme
  • Marketing Development Assistance (MDA) Scheme
  • Status Holder Scheme