Export Import

This blog is basically meant to make the terms use in business and in commerce more easily and understandable to each and everyone.

So we will start with a very easy topic that is Import and Export

In layman’s language,

“Import means purchasing or buying of goods from foreign countries.”

For eg: if India imports automobiles from South Korea

“Export means selling of goods and services to foreign countries.”

For eg. India export textile goods to United States.

So now there's need to know what India's major imports and exports.

What India Imports?

Crude petroleum, gold, pearls, precious stones, petroleum products, Telecom instruments, electronic components, industrial machinery, electronic components, Animal/vegetable fats, oils, waxes, Plastics, plastic articles, and medical apparatus.

What India Export?

Petroleum products, Mineral fuels including oil, Gems, precious metals, Machinery including computers, Organic, Electrical machinery, equipment, chemicals, iron, steel, and Pharmaceuticals products.

 

Export and Import are two ways for entering in to international business. Exporting and Importing can be done in 2 ways

DIRECT

INDIRECT

 

           Direct means when we approach to foreign country and complete all formalities.

            Indirect means when a firm employs a middleman ie CFA (Clearing and forwarding agent) To perform these formalities.

 

Now in this blog we will learn about some important terms used in import and export.

1.    Receipt of inquiry and sending quotations:- Buyers of a product send an enquiry  to Different exporters regarding price qualities terms and conditions.

2.   Receipt of order or Indent:- In case of prospective buyer is satisfied with the information Given in the performer invoice then he places an order for the goods will be dispatched.

3.   Pre shipment finance:- In this exporter needs to procure raw materials other components processing and packing of goods and transportation of goods to the port of shipment.

4.   Pre shipment inspection:- Pre shipment quality inspection To check the quality of the goods by export inspection council.

5.    Certificate of origin:- This certificate is a proof that goods are actually being manufactured in the country from where these are exported.

6.   Excise and custom duty:-Excise and custom duty are taxes levied (charged) By the government but the major difference between this two is that excise is the tax levied by the government on the goods manufactured in the country where customs duty is a tax levied upon goods imported into the country from foreign countries.

      By: Samina Bawa