How to Import

International Purchasing or How To import.

Though every country would decide to produce most of the products endogenously to conserve its foreign exchange, it is not wise as well as practical. Sometimes it may be advisable how to import the goods at laser cost than the indigenous cost of production. Importing has become very simple since Government of India economy. How to import duty have come down substantially up to 40% the products secondly from 1st April 2001 government has lifted restriction on imports. However it would be worthwhile for importer, to note changes is announced in import policy and procedure from time to time as these are subjected to change.

Generally the procedure for importing can be divided into following steps…

1. Locating Foreign Source of Supply.

This can be done now a days by using internet as a tool along with secondary source of information like trade/ manufacturers directories of various countries. Other important contacts can be foreign Chamber of Commerce, Foreign Consulates and agencies, Indian consulates in foreign countries Etc.

2. Procurement.

This can be done directly by company, through merchant importers and by availing the services of organizations like state Trading Corporation, Minerals and metals Trading Corporation etc.

3. Documentation.

Various documents used for importing are bill of lading, invoice, certificate of origin, other certificates, insurance policies etc.

However, before discussing the documentations we will look at the import cycle / steps involved in importing.

A.   How to Import Cycle.

1. Study of Policy.

Once the exact import need is identified one has to find out whether the item to be imported did needs import license. If yes, necessary steps should be initiated to obtain the same. If item is ‘canalized’ item, canalizing agency should be contacted.

2. Supplier Selection.

As explained earlier, overseas source of item to be imported should be located and their quotations should be invited. The quotations should be evaluated properly. Perhaps, negotiation with short supplier may be required to be done for various aspects like price, delivery schedule, payment currency, terms of payment etc.

3. Import License / IEC Number.

Importer has to obtain importer/exporter code number granted by director general of foreign trade (DGFT) office. He should also obtain import license on the basis of final offer from the overseas supplier.

4. Award of Contract.

An agreement of contract covering all terms and conditions should be finalized between importer and overseas supplier.

5. Opening Letter of Credit (L/C).

Importer should open letter of credit in favors of overseas supplier. Importer should approach his bank for opening L/C and inform accordingly to supplier.

6. Shipments and Insurance.

Importers should follow up the shipments and be in touch with supplier. If contract is F.O.B. (Free On Board) the importer has to arrange for freight and insurance as well.

7. Forward of Documents.

After shipment supplier prepares documents according to L/C and forwards them to his bankers for negotiation purpose. Foreign bank of supplier forward these to importer’s bank in India from passing on to the importers

8. Payment against Documents.

Once Importer receives documents through his banker, he verifies them for discrepancies, if any .if the documents are OK in all respects as per L/C, importer has to make a payment depending upon the tenure of the L/C.

9. Clearance Formalities.

On arrival of materials importer has to obtain commercial invoice, bill of lading, packing list, certificate of origin and other necessary documents in original. He has to get “shipping guarantee” from his banker, in favors of the shipping company or agent, which will entitle him to obtain possession of the material, if original documents are not available. These documents are to be forwarded to custom authorities for approval and assessment of duty and payments thereof.

10. Port Clearance.

Physical possession of the goods can be taken after clearance is obtained from custom authorities. Importer has to make arrangements for transporting the materials to The Final Destination after this.

11. Received in Stores.

On arrival, legal formalities, if required, should be completed and then material can be taken on stores record.

B.    How to Import Documents.

Some of the important documents used international trade are as follows.

1. Bill of Lading.

A bill of lading is a document signed by or on behalf of exporter acknowledging the receipt of certain specified goods for transportation and it is an undertaking that the goods will be delivered to the consignee or his representative. The bill of lading should be “clear” and not “Claused”.

Bill of lading is prepared by the shipper as per form of shipping company in 4 copies. 3 copies are signed and unsigned copy is retained by the ship’s master for his records.

Bill of lading contains information like the date and place of shipment, the name of the carrying vessel, the name of the consignor and consignee, the place of destination, the number, contents, identification mark of the goods shipped and the amount of the freight.

2. Commercial Invoice.

This is the supplier’s bill and it should have details like the quantity, price and terms, total value, markings, weights, method of shipment, details of insurance, packing and handling charges, etc. it is important that the description of goods should be same as that of the import license. This is not a document of title and it is also not negotiable. Generally, the amount of invoice must be within the limit set by the letter of credit.

3. Insurance Policy.

This is issued by insurance company for the goods insured.

4. Certificate of Origin.

Certificate of origin is to be certify the origin of goods. This is generally required when the goods from the certain countries receive preferential treatment (in form of custom duties) or the Import of goods from some countries is prohibited.

5. Surveyor’s Report.

A surveyor who inspects the goods issues this report.

6. Packing List.

This indicates the exact nature, quantity and the quality of the contents of each packing in a shipment. This is useful for importer to check goods against order.

7. Letter of Credit (L/C).

The importer approaches the bank in his country to issue a letter of credit in favors of the overseas supplier/exporter. The bank informs the other bank in exporter’s country about the opening of the credit in favors of the exporter. The bank in exporters country intimates exporter’ about the same. The liability for the payment is of the bank who issues L/C and the bank that Honors the drafts drawn by the exporter, is reimbursed by the Bank issuing L/C.

Three type of letter teeth are as under.

I)                    Revocable L/C

This L/C can be cancelled by the buyer before affecting payment.

II)                  Irrevocable L/C

This L/C cannot be altered in any manner and payment must be made by the bank on presenting the documents

III)                Revolving L/C

This L/C is used when a specific quantity of goods is required to be shipped at a predetermined intervals. Due to L/C supplier is assure of prompt payment for the goods he exports while the buyer is assured that the goods will be exported within a specified time at a specified price.

C.    How to Import by Air and Post.

Goods can be imported by air as well as by post. Though airfreight is more than Ocean freight the importer enjoys the advantage of lesser delivery time. Imports by air are resorted to in case of perishable goods flowers, fruits, vegetables etc. and for other products like lifesaving drugs which need quick transportation. High value products like gems and jewelry are also transported by air.

Airway bill is non-negotiable receipt for the goods. It is prepared in triplicate, one copy each for consignor, consignee and airline. Consignee’s copy is carried by airline along with goods and they advise consignee about arrival of goods. Airline hands over the consignee’s copy duly signed on receipt of goods to cosigner.

Other procedures like licensing, duties etc. are same for how to import by air and post as applicable in case of how to import by sea.




Import Export Policy 2002-2007


Import Export Policy of India,

 IMPORT EXPORT POLICY 2002-2007,trade policy governs exports from and imports into a country. IMPORT EXPORT POLICY 2002-2007 is one of the various policy instruments used by a country to attain her goals of economic development.  This policy is thus, formulated keeping in view, the national priorities for economic development and the international l commitments made by the country. IMPORT EXPORT POLICY 2002-2007 is essential that the entrepreneurs and the export managers understand the trade policy as it provides the vital inputs for the formulation of their business growth strategies. In India, the trade policy le., Import Export Policy is formulated by the Ministry of  commerce, Government of India in terms of section 5 of the Foreign Trade  (Development and Regulation ) Act, 1992 Besides, the Government of India also announced on January 30 , 2002 a Medium Term Export strategy, to guide the formulation the IMPORT EXPORT POLICY 2002-2007 with the, objective of achieving a share of 1 % in world trade by the end of 2006-07 from the present I share of 0.6%  (23000-01).  The text of this strategy is given as Appendix VII at the end of the book.  The present Export –Import Policy was announced on 31.3.2002 for a period of 5 years with effect from 1.4.2002 to 31.3.2007 co-terminus with Tenth Five Year Plan. It covers both the trade in merchandise and services. The present chapter explains legal framework affecting foreign trade of India particularly with reference to Import Export Policy; 2002-2007.  It also discusses the preferential trading arrangements affecting exports and imports of India.


 The foreign trade of India is guided by the Export-Import (EXIM) Policy of the Government of India arid is regulated by the Foreign Trade (Development and Regulation ) Act, 1992

 EXIM Policy contains various policy decisions taken by the government in the sphere of foreign trade, i.e., with respect to imports and exports from the country and more especially export promotion measures, policies and procedures related thereto. It is prepared and announced by the Central Government (Ministry of Commerce). India’s EXIM policy, in general, aims at developing export potential, improving export performance, encouraging foreign trade and creating favourable balance of payments position.


In India, the legal framework for the regulation of foreign trade is mainly provided by the Foreign Trade ( Development and Regulation ) Act, 1992 , Garments Export  Entitlement Policy: 2000-2004, Export (Quality Control and Inspection ) Act, 1963, Customs and Central Excise Duties Drawback Rules, 1995 , Foreign Exchange Management Act, 1999-and the customs and Central Excise Regulations.  The main objective of the Foreign Trade (Development and Regulation) Act is to provide for the development and regulation of foreign trade by facilitating imports into, and augmenting exports from India.  This Ac t has replaced the earlier law namely, the imports and Ex (Control) Act 1947. A comparison of the nomenclature of the two Acts makes it very dear that there is a shift in the focus of the law from control to development of foreign trade. This shift in the focus is the outcome of the emphasis on liberalisation and globalisation as a part of the process of economic reforms initiated in India since June 1991. The application of provisions of the Foreign Trade (Development & Regulation) Act 1992 has been exempted for certain trade transactions vide Foreign Trade (Exemption from application of Rules in certain case) Order 1993.


 Government control import of non-essential items through an import policy.  At the same time, all-out efforts are made to promote exports.  Thus, there are two aspects of trade policy; the import policy which is concerned with exports not only promotion but also regulation. The main objective of the Government policy is to promote exports to the maximum extent.  Exports should be promoted in such a manner that the economy of the country is snot affected by unregulated exports of items specially needed within the country.  Export control is, therefore, exercised in respect of a limited number of items whose supply position demands that their exports should be regulated in the larger interests of the country.  In other words, the policy Aims at (i) Promoting exports and augmenting foreign exchange earnings; and (ii) Regulating exports wherever it is necessary for the purposes of either avoiding competition among the Indian exporters or ensuring domestic availability of essential items of mass consumption at reasonable prices. The government of India announced sweeping changes in the trade policy during the year 1991. As a result, the new Import Export Policy came into force from April 1, 1992. This was an important step towards the economic reforms of India. In order to bring stability and continuity, the policy was made for the duration of 5 years.  In this policy import was liberalised and export promotion measures were strengthened. The steps were also taken to boost the domestic industrial production. The more aspects of the Import Export Policy (1992-97) include: introduction of the duty-free Export Promotion Capital Goods (EPCG) scheme, strengthening of the Advance Licensing System, waiving of the condition on export proceeds realisation, rationalisation of schemes related to Export Oriented Units and units in the Export Processing Zones. The thrust area of this policy was to liberalise imports and boost exports.  The need for further liberalisation of imports and promotion of exports was felt and the Government of India announced the new Import Export Policy (1997, 2002). This policy has further simplified the procedures and reduced the interface between exporters and the.

Director General of foreign Trade (DGFT) by reducing the number of documents required for export by half. Import has been further liberalised and efforts have been made to promote exports. The new EXIM Policy 1997-2002 aims at consolidating the gains made so far, restructuring the schemes to achieve further liberalisation and increased transparency in the changed trading environment. It focuses on the strengthening the domestic industrial growth and exports and enabling higher level of employment with due recognition of the key role played by the SSI sector.  It recognises the fact that there is no substitute for growth, which creates jobs and generates income.  Such trade activities also help in stimulating expansion and Diversification of production in the country.  The policy has focussed on the need to let exporters concentrate on the manufacturing and marketing of their products globally and operate in a hassle free environment. The effort has been made to simplify and streamline the procedure. The objectives will be achieved through the coordinated efforts of all the departments of the Government in general and the Ministry of Commerce and the Directorate General of Foreign Trade and its network of Regional Offices in particular.  Further it will be achieved with a shared vision and commitment and in the, best spirit of facilitation in the interest of export.


 The principal objectives of the EXIM Policy 1997-2002 are as under:

  1. To accelerate the economy from low level of economic activities to high level of economic activities by making it a globally oriented vibrant economy and to derive maximum, benefits from expanding global market opportunities.
  2. To stimulate sustained economic growth by providing access to essential raw materials, intermediates, components, ‘consumables and capital goods require for augmenting producing.
  3. To enhance the technological strength and efficiency of Indian agriculture, industry and services, thereby, improving their competitiveness.
  4. To generate new employment.  Opportunities and encourage the attainment of internationally accepted standards of quality.  To provide quality consumer products at reasonable prices.


 Period of the Policy

This policy is valid for five year instead of t): 1 years as in the case of earlier policies.  It is effective from 1st April 1997 to 31 March 2002.

  1. Liberalisation

A very important feature of the policy is liberalisation. It has substantially eliminated licensing, quantitative restrictions and other regulatory and discretionary controls. All good, except those coming under negative list, may be freely imported or exported.

  1. Imports Liberalisation of 542 items from the restricted list 150 items have been transferred to Special Import Licence (SIL) list and remaining 392 items have  been transferred to Open General Licence (OGL) List.
  2. Export Promotion Capital Goods (EPCG) Scheme.

The duty on imported capital goods under EPCG scheme has been reduced from 15 % to 10 % under the zero duty EPCG Scheme, the threshold limit has been reduced from Rs. 20 crore to Rs.5 crore for agricultural and allied!  Sectors.

  1. Advance Licence Scheme under Advance License Scheme, the period for export obligation has been extended from 12 months to 18 months.

A further extension for six months can be given on payment of 1 % of the value of unfulfilled exports

a.)Duty Entitlement Pass Book (DEPB) Scheme.

Under the DEPB, an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency.  Such credit can be can be utilized for import of raw materials, intermediates, components, parts, packaging materials, etc. for export purpose.

b.)Special Import Licence (SIL)

150 items from the restricted list have been transferred to SIL. SIL on exports from SSIs has been increased from 1 % to 2 %. Export houses and all forms of trading houses are eligible for additional SIL of 1 % on exports of products from SSIs from North Eastern States.  Additional SIL has been declared for exploration of new markets and for export of our products. The SIL entitlement of exporters holding ISO 9000 certification has been? From 2 % to 5 % of the FOB value exports.

Export Houses and Trading House: – The criteria for recognition of export houses and all forms of trading houses has been modified.


The major implications of the EXIM Policy 1997-2002 are:

  • Globalisation of Indian Economy: The EXIM policy 1997-02 proposed to prepare a framework for globalisation of Indian economy. Economy from low level of economic activities to – high level of economic activities by making it a globally oriented vibrant economy and to derive maximum benefits from expanding global market   “The Indian economy has been exposed to more foreign competition. The regime of high protection is gradually‘vanishing.  It means, in order to survive, Indian companies will have to pay due attention to cost reduction, improvement in quality, delivery schedules and after sales service.  At the same time,; Indian industries  have also been given an opportunity to globalise their business by allowing them to import machineries and raw materials from abroad on liberal terms.
  • Impact on the Indian Industry: In the EXIM policy 1997-02, a series of reform measures have been introduced in order to give boost to India’s industrial growth and generate employment opportunities in non-agricultural sector.

The reduction of duty from 15 % to 10 % under SEPCG scheme will enable Indian firms to import capital goods.  This will improve the quality and productivity of the Indian industry.  However, liberalisation of imports by transferring 542’ items from restricted list to OGL and SIL list would adversely affect the growth of, consumer goods industry in India, as most of these items are consumer goods items.

  1. a) Impact on Agriculture: – many encouraging steps have been taken in order to given a boost to Indian agricultural sector. Double weight age for agro exports while calculating the eligibility for export houses and all forms of trading houses. Additional SIL of 1 % for export of agro products.  EOUs’ and units in EPZs in agriculture and allied sectors can sell 50 % of their output in the domestic tariff are (DTA) on payment of duty.  Under the zero duty EPCG scheme, the threshold level has been reduced from Rs. 20 crore to Rs. 5 crore for agriculture and allied sectors.
  2. b) Impact on Foreign Investment ….

In order to encourage foreign investment in India, the SEXIM policy 1997-02 has permitted 100 % foreign equity participation in the case of 100 % EOUs, and units set up in EPZs. Due to liberalisation of procedural formalities, foreign companies may be attracted to set up manufacturing units in India. Full Convertibility of Indian Rupee on revenue account would also give a fillip to foreign investment in India.

Impact on Quality Up gradation:

The SIL entitlement of exporters holding ISO 9000 certification has been increased from 2 % to 5 % of the FOB value of exports.  This would encourage Indian industries to undertake research and development programmers and upgrade the quality of their product.  Liberalisation of EPCG scheme would encourage Indian industries to import capital goods and improve quality and increase productivity of goods.

Impact on Self-reliance : –

One of the long-term objective of the Indian planning is to become self-reliant. This objective is well reflected in the EXIM Policy 1997-02.  The policy aims at encouraging domestic sourcing of raw materials, so as to building up strong domestic production base.  In order to achieve this the policy has also extended the benefits given to exporters to deemed exporters.  This would lead to import substitution. Oil, Power and natural gas sectors have also been brought under the purview of deemed Exports. However, the globalisation policy of the government may harm the interests of SSIs and cottage industries, as they may not be able to compete with MNCs.


The export- Import Policy: 2002-2007 deals with both the export and import of merchandise and services.  It is worth mentioning here that the Import Export Policy:  1997-2002 had accorded a status of exporter to the business firm exporting services with effect from 1.4.1999. Such business firms are known as Services Providers.

The Import Export Policy has been described in the following documents:

Import Export Policy: 2002-2007

Handbook of Procedures Volume I

Handbook of Procedures Volume II

ITC (HS) Classification of Export-Import Items.

The main policy provisions are given in the policy document entitled “Import Export Policy 2002-2007”. An exporter will l have to refer to the Handbook of Procedures Volume-I to know the procedure3s. The agencies and the documentation required to take advantage of a certain provision of the policy.

There is a para-by-para correspondence between the Policy and the Handbook of Procedures Volume-I. Thus, if an exporter finds that para 6.2 of the policy is relevant  for his business enterprise then he should also refer to the corresponding para of the  Handbook of Procedures Volume-I to know precisely what is to be done to 1ake advantage of the policy provision. The Handbook of Procedure Volume-II provides a very vital information as regards the standard input-output norms in regard to items of export from India.  Based on these norms exporters are provided the facility to make duty-free import of inputs required for manufacture of export products under the Duty Exemption Scheme /Scheme/Duty Remission Scheme.  The policy regarding import or export of a specific tem is given in the document entitled “ITC (HS) Classifications of Export-Import Items“. In addition to these policy documents, an export enterprise regulatory authorities dealing with different aspects of foreign trade. One can refer to these notice either by visiting the relevant web site of the authority concerned or buy referring to carious trade magazines which circulate them.

Import Export Procedure

Import Export Procedure

Import Export Procedure

Import And Export Procedure, Financing, and Primary Consideration Of international shipping documents..

Import Export Procedure Introducing: Firms engaged in international trade face a problem – they have to trust someone who may be very difficult to track down if they default on an obligation.  Due to the lack of trust, each party to an international transaction has a different set of preferences regarding the configuration of the transaction. Firms can solve the problems arising from a lack of trust between exporters and importers by using a third party who is trusted by both–normally a reputable bank.  A bank issues a letter of credit, abbreviated as L/C at the request of an importer.  It states that the bank promises to pay a beneficiary, normally the exporter, upon presentation of documents specified in the letter of credit.  A draft (bill of exchange) is the instrument normally used in international commerce to effect payment.  It is an order written by an exporter instructing an importer, or an importer’s agent, to pay a specified amount of money at a specified time.

14 Steps for conducting export transaction

The entire 14-step process for conducting an export transaction is summarized.  Take for example an Indian importer and US exporter.

Step 1: The Indian importer place an order with the US exporter and asks the American if he would be willing to ship under a letter of credit.


Step 2:  The US exporter agrees to ship under a letter of credit and specifies relevant information such as price and delivery terms.

Step 3:  The Indian importer applies to (e.g.) State bank of India for a letter of credit to be issued in favour of the US exporter from the merchandise the importer wishes to buy.

Step 4: The state bank of India issues a letter of credit in the Indian importer’s favour and sends it to the US exporter’s bank, the bank of New York.

Step 5:  The bank of New York advices the US exporter of the opening of a letter of credit in his favour.

Step 6: The US exporter ships the goods to the Indian importer on a common carrier. An official of the carrier gives the exporter a bill of lading.

Step 7:  The US exporter presents a 90 day-time draft (bill of exchange) drawn on the State Bank of India, in accordance with its letter of credit and the bill of lading to the bank of New York. The US exporter endorses the bill of lading so title of goods is transferred to the Bank of New York.

Step 8: The bank of New York sends the draft and the bill of lading to the State Bank of India.  The State Bank of India accepts the draft, taking possession of the documents and promising to pay the now accepted draft in 90 days.

Step 9:  State Bank of India returns the accepted draft to the bank of New York.

Step 10:  The bank of New York tells the US exporter that it has received the accepted bank draft, which is payable in 90 days.

Step 11:  The exporter sells the draft to the bank of New York at a discount from its face value and receives the discounted cash value of the daft in return.

Step 12:  State Bank of India notifies the Indian importer of the arrival of the documents.  He agrees to pay the State Bank of India in 90 days.  State Bank of India releases the documents so the importer can take possessions of the shipment.

Step 13:  in 90 days, the State Bank of India receives the importer’s payment, so it has funds to pay the maturing draft.

Step 14:  In 90 days the holder of the matured acceptance i.e. bank of New York presents it to the State Bank of India for payment. The State Bank of India pays.

Export Assistance

Exporters in the Indian can draw upon two types of government-backed assistance to help finance their exports; the Export-Import bank and Export Credit Guarantee Corporation (ECGC) The Export-Import Bank (EXIM BANK ) is a public sector financial institution established in January 1 ,  1982 . It was established by an act of parliament for the purpose of financing, facilitating, and promoting foreign trade in India. Export Credit Guarantee Corporation (ECGC): this institution covers the exporter against various risks. It also provides guarantees to the financing banks to enable them to provide Adequate finances to exporters.

Export Import Primary Consideration

It will discuss the preliminary considerations that anyone intending to export should consider. Before beginning to export and on each export sale thereafter, a number of considerations should be addressed to avoid costly mistakes and difficulties. Those companies that begin exporting or continue to export without having addressed the following issues will run into problems sooner or later Products initially, the exporter should think about certain considerations relating to the Product it intends to export.  For example, is the product normally utilized as a component Ina customer’s manufacturing process? Is it sold separately as a spare part? Is the product a raw material, commodity, or finished product? Is it sold singly or as part of a set or system? Does the product need to be modified– such as the size, weight, weight, or colour-to be saleable in the foreign market? Is the product new or used?  (If the product is used, some countries prohibit importation or require independent appraisals of Value, which can delay the sale.) Often the appropriate   methods of manufacturing, marketing, the appropriate documentation, the appropriate procedures for exportation, and the treatment under foreign law, including foreign customs laws, will depend upon these considerations.


 What is the expected volume of export of the product? Will this be an isolated? Sale of a small quantity or an ongoing series of transactions amounting to substantial Quantities? Small quantities may be exported under purchase orders and purchase Order acceptances. Large quantities may require more formal international sales agreements: more secure methods of payment: special shipping, packing, and handling procedures: the appointment of sales agents and /or distributors in the foreign country: or After-sales service.

Country Market and Product Competitiveness  Research On many occasions, a company’s  sole export sales business consists of responding to orders from customers located in foreign countries without any active sales efforts by the company. However, as matter of successful exporting, it is imperative that the company adequately e valuate the various world markets where its product is likely to be marketable.  This will include review of  macro-economic factors such as the size of the population and the economic development level and buying power of the country, and the economic development level and buying power of the country, and specific factors, such as the existence of competitive products in that country.

 Identification of Customers:  End user, Distributors, and sales Agents Once the countries with the best market potential and the international competitiveness of your company’s products have been evaluated, the specific purchasers, Such as end users of the products, sales agents who can solicit sales in that country for the products, or distributors who are willing to buy and resell the products in that country, must be identified.

Compliance with Foreign Law

 Prior to exporting to a foreign country or e3ven agreeing to sell to a customer in a foreign country, U.S. company should be aware of any foreign laws which might affect the sale. Some specific examples are as follows:

Industry Standards

Foreign Customs Laws

Government Contracting

Buy American Equivalent Laws

Exchange Controls and Import Licenses

Value-Added Taxed

Specialized Laws


 Introduction:  Although the sales agreement is by far the most important single document in an export sales transaction, they are numerous other documents with which the exporter must be familiar. In some cases, the exporter may not actually prepare such documents, especially if the exporter utilizes the services of a freight forwarder. The exporter is responsible for the content of the documents prepared and filed by its agent, the freight forwarder.  Since the4 exporter has legal responsibility for any mistakes of the freight forwarder, it is very important for the exporter to understand what documents the freight forwarder is preparing and for the exporter to review and be totally comfortable with the contents of such documents. Furthermore, the documents prepared by the freight forwarder are usually prepared based on information supplied by the exporter.  If the exporter does not understand the documents or the information that is being requested and a mistake occurs, the freight forwards will claim that the mistake was due to improper information provided by the exporter.

Freight Forwarder’s Powers of Attorney:

 A freight forwarder will ordinarily provide a form contract that specifies the services it will perform and the terms and conditions of the relationship.  Among other things, the contract will contain a provision appointing the freight forwarder as an agent to prepare documentation and granting a power of attorney for that purpose. Under new regulations, if the freight forwarder will have the authority to prepare shipper’s Export Declarations that must be expressly stated in the power of attorney.) Usually, however, the freight forwarder will have a more elaborate contract which includes other specific terms of or provisions relating to, the Services which it will provide.

Shipper’s Letters of Instructions

 On each individual export transaction, the freight forwarder will want to receive instructions from the exporter on how the export is to be processed. The terms or Conditions of sale agreed between the seller and the buyer may vary from sale to sale. Consequently, in order for the freight forwarder to process the physical export of the goods and prepare the proper documentation, it is necessary for the exporter to advise the freight forwarder as to the specific agreement between the seller and buyer for that sale.  Freight forwarders offer provide standard forms containing spaces to be filled in by the exporter for the information that it needs.

Commercial Invoices

 When the exports is shipped, the exporter must prepare a commercial invoice, which is a statement to the buyer for payment. Usually English is sufficient but some countries require the seller’s invoice to be in their language.  Multiple copies are usually required, some of which are sent with the bill of lading and other transportation documents. The original is forwarded through banking channels for payment (except on open account sales, where it is sent directly to the buyer).  On letter of credit transactions, the invoice must be issued by the beneficiary of the letter of credit and addressed to the applicant for the letter of credit.  Putting the commercial invoice number on the other shipping documents helps to tie the documents together.

Bills of Lading

 Bills of lading are best understood if considered as bills of loading.  These documents are issued by transportation carriers as evidence that they have received the shipment and have agreed to transport it to the destination in accordance with their usual tariffs s (rate schedule). Separate bills of lading may be issued for the inland or domestic portion of the transportation and the ocean marine) or air transportation, or a through bill of lading covering all transportation to the destination may be issued.

The domestic portion of the route will usually be handled by the trucking company or railroad transporting the product to the port of export.  Such  transportation companies have the own forms of bills of lading and, again, commercial stationers make available forms that can be utilized by exporters, which generally say that the exporter agrees to all of the specific terms or conditions of transport normally  contained in the carrier’s usual bill of lading and tariff. The inland bill of lading should be prepared in accordance with the freight forwarders or transportation carrier’s instructions.

The ocean transportation will be covered by a marine bill of lading prepared by the exporter or freight forwarder and issued by the steamship company. Information in bills of lading (except apparent condition at the time of loading) such as marks, numbers, quantity, weight, and hazardous nature is based on information provided to the carrier by the shipper, and the shipper warrants its accuracy.  Making, altering, negotiating, or transferring a bill of lading with intent to defraud is a criminal offense.  If the transportation is by air, the airline carrier will prepare and issue an air waybill. A freight consolidator will issue house air waybills which are not binding on the carrier buy are given to each shipper to evidence inclusion of its shipment as part of the consolidated shipment. In such cases the freight consolidator becomes the “shipper” on the master bill of lading.

Dock and Warehouse Receipts

 Upon completion of the inland transportation to the port of export, the inland carrier may deliver the goods to a warehouse company or to a warehouse operated by the steamship company as arranged by the freight forwarder.  A dock receipt is often prepared by the freight forwarder on the steamship company’s form and is signed by the warehouseman or agent of the steamship company upon receipt of the goods as evidence of the receipt.  The inland carrier then provides a signed copy of the dock receipt to the freight forwarder as evidence that it has completed the delivery.

Consular Invoices

 In addition to a commercial invoice, some countries, including Panama, Bolivia, Haiti, the Dominican Republic, and Honduras, also require that a consular invoice be prepared.  A consular invoice is usually prepared from the information in the commercial invoice, but it must be signed by a representative of the country of destination stationed at that country’s embassy or consulate located in the United States nearest the exporter. One reasons for requiring such invoices is that the country of destination may deduct certain charges from the price of the goods in order to determine the value for customs duties. If the commercial invoice does not contain all of the information necessary, the foreign customs service would be unable to complete the duty assessment. The consular invoice list the specific items about which that country requires information. The consular charges a fee for this service.

Certificates of Origin

Some countries require that goods shipped to the country be accompanied by a certificate of    origin designating the place of manufacture or production of the goods.  This is signed by the exporter, and usually, a local chamber of commerce that is used to performing this service (again, for a feed) certifies to the best of its knowledge that the products are products of the country specified the exporter. The exporter may exports to or imports from Canada or Mexico. In general, in order to be eligible for the duty-free or reduced duty rates under NAFTA, all items imported from outside of North America must have undergone the “tariff shift”   specified in Annex 401 during the manufacturing process for that product.

Certificates of Free Sale

 Sometimes an importer will request that an exporter provide a certificate of free Sale.  Loosely speaking, this a certification that a product being purchased by the  importer complies with any U.S. government regulations for marketing the product  And may be freely sold within the United States. Sometimes, depending upon the Type of product involved, the importer will be able to accept a self-certification by the Exporter.  Frequently, however, the importer seeks the certificate of free sale because the importer’s own government requires it.

For example, these request are common With regard to food, beverages, pharmaceuticals, and medical devices.  The foreign Government may or may not require the importer to conduct its own testing of the Products for safety but May, either as a primary source or as backup for its own testing, seek confirmation that the products are in compliance with the U.S. Food, Drug and Cosmetics Act. Delivery Instructions and Delivery Orders The Delivery Instructions form is usually issued by the freight forwarding company to the inland transportation carrier (the trucking or rail company), indicating to the inland carrier which pier or steamship company has been selected for the ocean transportation and giving specific instructions to the inland carrier as to where to deliver the goods at the port of export.

This must be distinguished from the Delivery Order, which is a document used to instruct the customs broker at the foreign port of destination what to do with the  goods , in particular, the method of foreign inland transportation to the  buyer’s place of business.

Shipper’s Declarations for Dangerous Goods

 Under the U.S. Hazardous Materials Transportation Act, the international Air Transport Association Dangerous Goods Regulations, and the International Maritime Dangerous Goods Code, exporters are required to provide special declarations or notice to the inland and ocean transportation companies when the goods are hazardous. This includes explosives, radioactive materials, etiological agents, flammable liquids or solids, combustible liquids or solids, poisons, oxidizing or corrosive materials, and compressed gases. These include aerosols, dry ice, batteries, cotton, anti-freeze, cigarette lighters, motor vehicles, diesel fuel, disinfectants, cleaning liquids, fire extinguishers, Pesticides, animal or vegetable fabrics or fibres, matches, paints, and may other products.  The shipper must certify on the invoice that the goods are properly Classed, described, packaged, marked and labelled, and are in proper condition for Transportation in accordance with the regulations of the Department of Transportation Precursor and Essential Chemical Exports Those who export (or import) “precursor” chemicals and “essential “chemicals that can be used to manufacture illegal drugs are required to file Drug Enforcement Administration (DEA) Form 486 In some case,. This form must be filed fifteen days in advance of exportation (or importation).

Animal, Plant, and Food Export Certificates

  The U.S. Department of Agriculture is supportive of companies that want to export Livestock, animal product s, and plants and plant products. Often, the destination Country will have specific requirements in order to permit import to that country, but sometimes the foreign country will accept or require inspections performed and Certificates issued in the United States. In general, the U.S. Department of Agriculture Offers inspection services and a variety of certificates to enable exporters to satisfy Foreign Government requirements.

Drafts for Payment

 If payment for the sale is going to be made under a letter of credit or by documentary  Collection, such as documents against payment ( “DP” or sight draft ) or documents against acceptance (“DA or time draft ), the exporter will draw a draft on the buyer’s  bank in a little  of credit transaction or the l buyer in a documentary collection  transaction payable to itself ( sometimes it will be payable to the seller’s bank on a  confirmed letter or credit ) in the amount of the sale. This draft will be sent to the seller’s bank along with the instructions for collection, or sometimes the seller will sent it directly to the buyer’s bank. If the payment agreement between the seller and buyer is at sight, the buyer will pay the draft when it is received, or if issued under a letter of credit, the buyer’s bank will pay the draft when it is received.  If the agreement between the seller and the buyer is that the buyer will have some grace period before making payment, the amount of the delay, called the usance, will be written on the draft (time draft), and the buyer will usually be responsible for  payment of interest to the seller during the usance period unless the parties agree otherwise. The time period may also be specified as some period after a fixed date, such as ninety days after the bill of lading or commercial invoice date, or payment simply may be due on a fixed date.

Freight Forwarder’s Invoices

The freight forwarder will issue a bill to the exporter for its services. Sometimes. The forwarder will include certain services in its standard quotation while other services. Will be add-ons. It is important to make clear at the outset of the transaction which services will be performed by the exporter, the freight forwarder, and other, Such as the bank.

Shipper’s Export Declarations

The Shipper’s Export Declaration (SED) is important because it is the one by one of all of the export documents that is filled with and U.S. Governmental agency. The SED is given to the exporting steamship carrier or air carrier and is filed by them with the U.S. Customs Service prior to clearing the port. This document may be prepared by the exporter, or it may be prepared by the exporter’s agent, the freight forwarder, and the exporter may not see it.  Nevertheless, the SED form specifically states that any false statements in the form (which is interpreted to include accidentally false statements as well as intentionally false statements) will subject the exporter to various civil and criminal penalties, including a $ 10,000 fine and up to five year’s imprisonment.

Letters of credit

 When the buyer has agreed to provide a letter or credit as part of the payment terms, the buyer will apply to its local bank in its home country and a letter of credit will be issued. The seller should send instructions to the buyer before the letter of credit is opened, advising the seller as to the terms and conditions it desires.  The seller should always specify that the letter of credit must be irrevocable.  The bank in the buyer’s country is called the issuing bank. The buyer’s bank will contact a correspondent bank near the seller in the United States, and the U.S. bank will send a notice or advice to the exporter that the letter of credit has been opened.  If the letter of credit is a confirmed letter of credit, the U.S bank is called the confirming bank; otherwise, it is called the advising bank. The advice will specify the exact documents that the exporter must provide to the bank in order to receive payment.  Since the foreign and U.S. banks are acting as agent and subagent, respectively, for the buyer, the U.S. bank will refuse to pay unless the exact documents specified in the letter of credit are provided. The banks never see the actual shipment or inspect the goods; therefore, they are extremely meticulous about not releasing payment unless the documents required have been provided. The issuing bank and advising bank each have up to seven banking days to review the documents presented before making payment when the exporter receives the advice of the opening of a letter of credit, the exporter should review in detail the exact documents required in order to be paid under the letter of credit.

Introduction to Letters of Credit

Letters of credit are a payment mechanism, particularly used in international trade.  The Seller gets paid, not after the Buyer has inspected the goods and approved them,  but when the Seller present certain document ( typically a bill of lading evidencing  shipment of the goods, an insurance policy for the goods, commercial invoice, etc.) to  his bank. The bank does not verify that the documents presented are true, but only whether they “on their face” appear to be consistent with each other and comply with the terms of the credit. After examination the bank will pay the Seller (or in LC terms the beneficiary of the letter of credit).


  • Buyer and Seller sign a purchase contract that stipulates payment by letter of credit. It is good practice to agree already in the purchase contract which documents the Seller / Beneficiary has to present.
  • The Buyer goes to his bank (so called issuing bank ) opening the credit to the benefit of the Seller, in particular the Buyer tells his bank which documents the  Beneficiary has to present, where and how, and the amount of the credit and details of payment ( by sight, deferred sight payment, against acceptance or negotiation of drafts).
  • The issuing Bank, which is normally located in a foreign country, advises the Beneficiary through a correspondence bank located in the country of the Beneficiary of the credit.
  • The Buyer ships the goods and presents the necessary documents to his local bank which pays him after examining them.  The obligation of the bank is independent of the rights of the parties under the purchase/service contract.  This means that absent fraud, the bank has to pay when conforming documents are presented, even though the goods are not of the contractually agreed quality or quantity.

The Seller can strengthen his position by requesting a “confirmed“letter of credit.  The confirmation of a bank in the Seller’s country means that the payment obligation of the confirming bank is independent of the issuing bank. If the issuing bank cannot wire funds outside the country due to governmental restrictions, the confirming bank still has to pay, even though it will not be reimbursed by the issuing bank.

The Seller thus can avoid currency transfer restrictions which are sometimes found in   developing countries. A standby letter of credit is basically a bank guarantee. Previously US banks were not allowed to issue guarantees and circumvented this limitation by issuing standby letters of credit where the beneficiary basically has to present his face to get paid.  Most letters of credit, particularly in international transactions, are subject to the Uniform Customs and Practices (UCP) issued and published by the International Chamber of Commerce (ICC).

The current revision UCP 600 is publication No. 600 of the ICC and takes effect as of July 1 ,2007  Since the ICC lacks legislative authority, meaning it is not the arm of or authorized by any government but rather a trade association, the  UCP are no laws and have to be explicitly incorporated into individual transaction.  Some countries and states have enacted statutes regarding letters of credit (see e.g. Article 5 US Uniform Commercial Code). In international trade however, most parties choose to use the UCP.

The Letter of Credit

  A letter of credit is a document typically issued by a bank or financial institution ,  which authorizes the recipient of the letter ( the “customer “ of the bank ) to draw  amounts of money up to a specified total, consistent with any terms and conditions set forth in the letter.  This usually occurs where the bank’s customer seeks to assure a seller (the “beneficiary “ ) that it will receive payment for any goods it sells to the customer.

For example, the bank might extend the letter of credit conditioned upon the beneficiary’s providing documentation that the goods purchase with the line of credit have been shipped to the customer. The customer may use the letter of credit to assure the beneficiary that, if it satisfies the conditions set forth in the letter, it will be paid for any goods it sells and ships to the customer.

In simple terms, a letter of credit could be said to document a bank customer’s line of credit, and any terms associated with its use of that line of credit.  Letters of credit are most commonly used in association with long-distance and international commercial transactions.

Confirmed Letter of Credit.

A letter of credit, issued by a foreign bank, which has been verified and guaranteed by  a domestic bank in the event of default by the foreign bank or buyer.  Typically, this form of letter of credit will be sought when a domestic exporter seeks assurance of payment from a foreign importer.

Commercial Letter of Credit.

 A commercial letter of credit assures the seller that the bank will provide payment for any goods or merchandise shipped to the bank’s customer, assuming the seller provides any required documentation of the transaction and its shipment of the purchased goods.

Irrevocable Letter of Credit

  An irrevocable letter of credit includes a guarantee by the issuing bank that if all of the terms and conditions set forth in the letter are satisfied by the beneficiary, the letter of credit will be honoured.

Standby Letter of Credit.

 In the event that the bank’s customer defaults on a payment to the beneficiary, and the beneficiary documents proof of its loss consistent with any terms set forth in the letter, a standby letter of credit may be used by the beneficiary to secure payment from the issuing bank.

Import And Export Procedure To start Export Business Along With Import Export Course Of international shipping documents.

List Institutional Support For Exporters


Institutional Support For Exporters

Exporters India Institutional Support,As explained in the class, number of Institutional Support for Exporters India is extending various kinds of support for export promotion.  The list along with the addresses in Maharashtra is given below.

MSME _ Development Institute, Mumbai. MINISTRY OF MSME GOVT. OF INDIA MUMBAI…in the service of small scale industries in Maharashtra


Small Scale Industry Sector occupies an important position in the country’s industrial economy and continues to contribute to industrial production, exports, creation of employment opportunities etc. This is a sector that has emerged victorious in the face of rising threats from large sector within the country and from multi-nationals abroad. The Micro, Small & Medium Enterprises – Development Institute, Mumbai is the field office of Development Commissioner (MSME). Ministry of MSME. Govt. of India, set up for the promotion and development of Small Scale Industries in the state in the early fifties. This institute provides support/services to the State Government as well as coordinates various activities at the state level for the promotion & development of small scale industries. This Institute, along with SISI, Nagpur and Branch Institute at Aurangabad extend their services in Maharashtra.

O/o. DC (MSME), under the Ministry of MSME is the Apex body at the national level, headed by Development commissioner, (MSME) formulates the policy governing the Micro, Small & Medium Industries Sector in the country and chalk out schemes and programmes for development of the SSI sector. MSME also monitors the implementation of policies and the activities of promotion of small scale industries with active involvement of the State Directorate of Industries, through its network of 30 Small Industries Service Institutes (SISI), in all the states.

MSME-DI, Mumbai provides various types of extension services and assistance in setting up of units, promotions and development of products and services by the MSME. The Institute has technical Officers to provide guidance in all trades i.e. Metallurgy, Mechanical, Chemical, Leather, Glass & Ceramics, Electrical, Electronics, Food Industry, Management & Economic Investigation etc.


  • Technical Consultancy
  • Industrial Management Training
  • Economic Information
  • Entrepreneurial Development Programmes, Schemes for Educated Unemployed Youth/Prime
  • Minister’s Rozgar Yojana (PMRY)
  • Technology Resource Centre Facilities
  • Ancillary Development/Sub Contract Exchange
  • Marketing Assistance
  • Modernisation/Technology Up gradation
  • Export Promotion & Marketing Assistance for rehabilitation of sick units
  • Common Facility and Training
  • Bio-Technology
  • Library Facility
  • Assistance to State Govt. Agencies
  • Technical Assistance to various Central Govt. Agencies, Incentives for Small Scale Sector


  • Technical guidance
  • Identification and preparation of Project profiles/reports
  • Selection of Equipment, Machinery & Raw Materials.
  • Technical Up-gradation /Quality control.
  • Technical Seminar/ Workshop/ Clinic.
  • To prepare technical literature/ papers etc.


  • Conduct various Industrial Management Course e.g. Personnel, Finance, Marketing, Taxation, Export etc.
  • Improvement of Quality, Productivity of Labour etc.
  • Techno-Economical and Managerial, Appraisal reports to Banks/Financial Institutions.
  • Technical Training Course on product development etc.
  • Short-term / Tailor-made Technical Courses.


  • Industrial Potential Survey / Market Surveys.
  • Feasibility reports / State Industrial Profile.
  • Sample Survey / Collection of Statistics.
  • SSI Census.
  • Review Report / Production Index
  • Assistance and Rehabilitation of sick Units.
  • Advice/ guidance on policy issues.
  • Guidance on facilities available with Banks, Financial Institutions etc.


  • General One Month EDP Course.
  • Product and process EDP Programmes.
  • EDP for Women Entrepreneurs.
  • Product / Process Demonstrations.
  • To assist various institutions and Agencies for EDP.


  • To provide information about the different Schemes.
  • To help beneficiaries in identifying suitable projects.
  • To collect application forms in the district of Mumbai & place them before Task Force Committee.
  • To Co-ordinate PMRY activities with State Government.


  • Nodal Agency. Identified by Department of Public Enterprises for implementation of the above programme.
  • Conducts sensitization programmes & Awareness Campaigns for motivation VRS Optees & VRS released employees to join for the programmes.
  • Conduct training programme of 20/40 days duration, useful for self-employment of VRS employees.


A Technology Resource Centre has been functioning in the Institute since Sept/ OCT. 2001.  It serves as one stop Technology Sourcing through highly computerized connective environment linkages. It serves the need of existing & Prospective entrepreneurs at minimal & competitive costs.  Technical divisions of the Institute also source the technologies for providing to short and long training courses   held by the Institutes in the fields of Chemical, IMT Mechanical, etc.  A data base related to SS is under creation.


  • Identifications of Ancillary items for large/ small scale industries.
  • Interaction with public / private sector undertakings.
  • Preparation of Ancillary report / Directory.
  • Organising State Level Ancillary Development Programme-Cum-Exhibition or SMEs.
  • Both Global & Joint Venture out Sourcing.


  • Provide Market information.
  • Assist to prepare market feasibility report.
  • Indirect market support through Sub-Contract Exchange.
  • Marketing assistance for Govt. / Semi-Govt. programme through single point NSIC Registration.
  • Marketing Buyer-Sellers-Meet-cum-Exhibition.


  • Export Market information.
  • Export process and procedures information.
  • Export Management training.
  • Export Packaging training.
  • Seminar / Workshop on Export related procedures.
  • Arrange and forward exhibits to foreign trade fairs…
  • Preparation of Export directory and reports.
  • Seminar or “Bar Coding”
  • WTO Sensitization Seminars & Activities.
  • Seminars on IPR/Investigation of Anti-Dumping etc.


  • Undertaking in-plant studies.
  • Conduct cluster studies.
  • Programmes on Technology up-gradation / quality up-gradation & ISO-9000/Energy Conservation.
  • Conducting Awareness Programme/ Seminar/ Workshop on Pollution Control & ODS Phase Out.
  • Undertaking industry studies.
  • Co-ordination of Modernisation Activities.


  • Workshop facilities for undertaking jobs, jigs and fixtures, pressed tools, complicated jobs etc.
  • Industrial Design.
  • Machines Shop Practices for six month.
  • Short term courses on CNC Wire-cut machine and CNC Milling & Boring Machine.


  • The Institute has enriched Library containing different types of Technical Books. Magazines, Journals & reports relating to Industries.


The Biotechnology Cell set up in this Institute performs the activities such as:

  • Dissemination of Techno Commercial Information on Bio-Tech Projects.
  • Organise Workshop, Seminars in Biotechnology.
  • Technical Counselling for modernisation of existing Biotech SMEs.


The Centre caters to the design & of the needs of the Toy Industries especially in the following areas:

  • It centres a Toy Design Cell with the latest Software’s.
  • Assist existing and new small scale toy manufacturers in designing new toys.
  • Counselling for Mould making.
  • Organizes Seminars, Workshops etc. for capacity building of S.S. Toys Industries.


In Association with Indo German Tools Room Aurangabad (an ISO 9000 company). This Institute has set up CAD/CAM Training Centre.  The training programmes in the following software’s are offered to the Engineering Graduates, Diploma Holders and working Professionals, in engineering disciplines.



Provide all sorts of technical and other assistance to State Agencies like DICs, State Directorate of Industries, Corporation and various other industrial developmental agencies in the State.


  • All sorts of assistance and support to various NGOs. Associations and Institutions involved in the promotion and development of industries.






MSME- Development Institute

Ministry of MSME, Govt. of India,

Kurla Andheri Road, Sakinana


Tel. : 28576090/3091 /7166

Fax : 28578092

Email :

Website :


Khadi & Village Industries Commission (KVIC)


OBJDECTIVES;   The broad objectives that the KVIC has set before it are…

  • The social objective of providing employment.
  • The economic objectr5ive of producing saleable articles.
  • The wider objective of creating self-reliance amongst the poor and building up of a strong rural community spirit.

FUNCTIONS: Some of the major functions of KVC

  • The KVIC is charged with the planning. Promotion, organisation and implementation of programs for the development of khadi and other village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.
  • Its functions also comprise building up of a reserve of raw materials and implements for supply to producers. Creation of common service facilities for processing of raw materials as semi-finished goods and provisions of facilities for marketing of KVI product apart the organization of training of artisans engaged in these industries and encouragement of co-operative efforts amongst them. The promote the sale and marketing of Khadi and / or products of village industries or handicrafts, the KVIC may
  • Forge linkages with established marketing agencies wherever feasible and necessary.
  • The KVIC is also charged with the responsibility of encouraging and promoting research in the production techniques and equipment employed in the Khadi and village Industries sector and providing facilities for the study for the problems relating to it, including the use of non-conventional energy and electric power with a view to increasing productivity, eliminating drudgery and otherwise enhancing their competitive capacity and arranging for dissemination of salient results obtained from such research.
  • Further, the KVIC is entrusted with the task of providing financial assistance to institutions and individuals for development and operation of Khadi and village industries and guiding them through supply of designs. Prototypes and other technical information.
  • In implementing KVIC activities, the KVIC may take such steps as to ensure genuineness of the products and to set standards of quality and ensure that the products of Khadi and village industries do conform the standards.
  • The KVIC may also undertake directly or through other agencies studies concerning the problems of Khadi and /or village industries besides research or establishing pilot projects for the development of Khadi and village industries.
  • The KVIC is authorized to establish and maintain separate organisations for the purpose of carrying out any or all of the above matters besides carrying out any other matters incidental to its activities.


Khadi & Village Industries Commission, Royal Insurance Building, 4th floor 14 Jamshedji Tata Road,

City : Mumbai ● Pin code: 400 020

Phone 22822113
Telefax 2281 7449


National Small Industries Corporation Ltd. (NSIC). On ISO 9001 certified company. Since its establishment in 1955, has been working to fulfil its mission of promoting, aiding and fostering the growth of smalls ale industries and industry related small scale services / business enterprises in the country. Over a period of five decades of transition. Growth and development, NSIC has proved its strength within the country and abroad by promoting modernization, up gradation of technology, quality consciousness.  Strengthening linkages with large and medium enterprises and enhancing exports projects and products from small industries.

NSIC operates through 6 Zonal Offices. 26 Branch Offices. 15 Branch Offices. 15 Sub Offices, 5 Technical Services Centres, 3 Extension Centres and 2 software Technology Parks supported by a team of over 5000 professionals spread across the country.  The manage operations in Gulf and African countries NSIC operates from its offices in Dubai and Johannesburg.

NSIC carries forward its mission to assist small enterprises with a set of specially tailored schemes designed to put them in a competitive and advantageous position. The schemes comprises of facilitating marketing support, credit support, technology support and other support services.

  • Marketing
  • Consortia and Tender Marketing.
  • Single Point Registration for Government Purchase.
  • Exhibitions and Technology Fairs.
  • Buyer-Seller meets.
  • Export of Products and Projects.
  • Credit Support
  • Equipment Financing.
  • Financing for procurement of Raw Material (Short term)
  • Financing for Marketing Activities (Short term)
  • Finance through syndication with Banks.
  • Performance and Credit Rating Scheme for small industries.
  • Infomediary Services.
  • Mentoring and Advisory Services.
  • Software Technology Parks.
  • Science and Technology Part /Technology Business Incubators.
  • International Cooperation.
  • International consultancy services.


Prestige Chambers, Kalyan Street.

Masjid (East)


Textile Committee

 The Textiles Committee’s main objective is to ensure the quality of textiles and textile machinery both for internal consumption and export purposes. The Textiles Committee. As corollary to its main objective of ensuring the quality of textiles and textiles machinery has been entrusted with the following functions, under Section 4 of the Act:

  1. To undertake, assist and encourage, scientific, technological and economic research.
  2. To establish standard specifications for textiles, textile machinery and the packingMaterials.
  3. To establish laboratories for the testing of textiles and textile machinery.
  4. To provide training in the techniques of quality control.
  5. To provide for the inspection and examination of textiles and textile machinery
  6. To promote export of textiles.
  7. To collect statistics and to advise the Central Government on all matters relating to textiles and textile machinery.

Textiles Committee

Balu Road, Off. Veer Savarkar Marg.

Prabahadevi Chowk, Prabhadevi,

Mumbai- 400 025

Tel: 91-22-66527507, 66527500 (Board)

Fax: 91-22-66527509

Textiles Committee,

Ministry of Textiles, Govt. of India

162/11, Railway Lines


Maharashtra, India.

Indian Trade Promotion Organisation (ITPO)

India Trade Promotion Organisation (ITPO) is the nodal agency of the Government of India for promoting the country’s external trade. ITPO, during its existence of nearly three decades, in the form of trade Fair Authority of India and Trade Development Authority, has played a proactive role in catalysing trade, investment and technology transfer process. It promotional tools include organizing of fairs and exhibitions in India and abroad, Buyer-Seller Meets, Contact Promotion Programmes. Product Promotion Programmes and Promotion through Overseas Department stores, Market surveys and information Dissemination.

ITPO has an extensive infrastructure as well as marketing and information facilities that are availed by both exporters India and importers.  ITPO’s overseas offices assist buyers seeking information relating to sourcing products from India. ITPO’s overseas offices at New York. Frankfurt, Tokyo “Moscow and sao Paulo are pursuing opportunities for enhancement of India’s trade and investment.

Indian Trade Promotion Organisation (ITPO)

Pragati  Bhawan, Pragati Maidan

New Delhi- 110 001

New Delhi-110 001


Mumbai Office

Jhansi Castle,

7, Cooperage Road


Tel.: 022-228221041

Fax: 022-22044922


Directorate of Industries

The Directorate of Industries is an executive arm of the Industries Department and is engaged in implementation of Govt’s policies for all round development of industries in the State by seeking coordination amongst the State level promotional corporations and other Departments/ agencies of the Govt. relating to industries.

Its main functions are:

  1. To implement Industrial Policy 2001 / 2006 of the Government.
  2. Suggest Policy measure to the Government for effecting healthy and all round industrial development in the State in view of challenges and opportunities posed to the industry in the prevailing economic scenario.
  3. Assist Government in formulation of various polices viz. Industrial Policy, SEZ Polity, It policy. It policy, BT Policy, Package Scheme of Incentives, etc.
  4. Implement various promotional schemes.
  5. Resolving the operational problems of industry by inter departmental coordination.


Directorate of Industries.

Government of Maharashtra

2nd Floor, New Administrative Bldg.,

Opposite Mantralaya.

Mumbai-400 032

Sr. No.

Office /Depart./ Organisation

Office in Maharashtra


1 Office of the Development  Commissioner (MSME) 7 th Floor, Nirman  Bhavan New Delhi 110011 Director, Small Industries Service Institute. Govt. of India. Ministry of MSME, Sakinaka, Mumbai 400072

Tel. 022-28576090/3091


2 Director General Foreign Trade

Udyog Bhavan, New Delhi 110011

1)    The Joint Director General Foreign Trade, Central Govt. Offices New Bldg. New Marine Lines, Churchgate Mumbai 400020

Tel. 022-22016421


2)    Jt. DGFT.

PMT Commercial Complex.

Swargate, Pune-411037



3 National Small Industries Corporation NSIC Ltd., Okhala, New Delhi NSIC NSIC Prestige Chambers, Kalyan Street, Masjid (East) Mumbai 40009


4 State Directorate of Industries Development Commissioner (Industries)  Govt. of Maharashtra  2 nd Floor, New Administrative Bldg. Opp. Mantralaya  Mumbai 400032 Or

Office of General Manager District Industries Centre in each District.


5 Khadi and Village Industries Commission (KVIC) KVIC Vile Parle, Mumbai 400056
6 Federation of Indian Export Organisations (EIEO) Federation of Indian Export Organisation (EIEO)

World Trade Centre No. 1. 11 th floor Cuffe Parade, Mumbai 400005



7 Indian Institute of Foreign Trade (IIFT)  B-21,Kutub Institutional Area Mehruli Road , New Delhi 110016
8 Indian Institute of Packaging (IIP) Indian Institute of Packaging (IIP)

E-2, MIDC, Marol, Andheri (East)

Mumbai 400093


9 World Trade Institute WTI, World Trade Centre No.1

31 st Floor, Cuffe Parade, Mumbai 400005

10 Export Import Bank of India (EXIM Bank) Export Import Bank of India (EXIM Bank )

21 st floor , world centre No.1 Cuffe Parade, Mumbai 400005


11 Textile Committee  Textile Committee,

P.Blu Road , Off, Veer Savarkar Marg.

Prabahadevi Chowk,Prabhadevi,

Mumbai-400 025

Tel: 91-22-66527507 , 66527500 (Board)

Fax : 91-22-66527509

E-Mail :

Textiles Committee3,

Ministry of Textiles ,Govt. of India

162/11, Railway Lines


Maharashtra, India

12 Export Inspection Agency Export Inspection Agency

Opera House, Mumbai 400 007

13 Bureau of Indian Standard (BIS) Bureau of Indian Standard (BIS)

Manakalya, MNIDC, Andhere.

Mumbai 400 093

14 A few  industry Associations A Few Industries Association –( For Certificate of Origin)

1)    All India Manufacturer’s Organisation. 4 the Floor, Jeevan  Sahakar, Sir P.M.Rd., Fort Mumbai-1

2)    Chamber of Small Industry Associations, TSSIA House, Plot No: P-26, Road 16/t, Wagle Industrial Estate, Thane.

3)     Thane Small Scale Industries Association, TSSIA House, Plot No: P-26, Road 16/t, Wagle Industrial Estate, Thane.

4)     Maharashtra Chamber of Commerce & Industry , Oricon House, 6 th Flklor, 12 K. Dubhash  Marg, Fort Mumbai-1

Procurement Cycle in Supply Chain

procurement cycle in supply chain

Procurement Cycle in Supply Chain


The structure of the Procurement Cycle in Supply Chain department depends upon various factors like nature of the items Procured, volume, frequency of Procurement, inspection procedure, to be adopted etc. The structures and procedures followed also vary from company to company. An authority of amount to be spent on Procurement also may vary in different company. There is no standard method for organization activities of Procurement department but every company organize its activities best suited to itself.

However, broadly the various steps involved in can be as follows.

  1. Identification of need of materials in terms of quantity and quality.
  2. Intimation to Procurement department about need.
  3. Preparation of Procurement plan.
  4. Selection of waste source after proper scrutiny.
  5. Negotiation and finalizing of terms of purchase contract.
  6. Send purchase order to supplier.
  7. Call of timely delivery after receiving suppliers’ acceptance.
  8. Inspection of material received.
  9. Verification of suppliers’ invoice against purchase order and documentation of goods received.
  10. Payment to supplier against material received.

This is called as the purchase cycle following figure shows a typical purchasing cycle

Goals of Procurement Cycle

Procuring is the important function of materials management. An objective of the Procuring is to issue or continuous supply of raw materials, subcontracted items and spare parts to the production department. It also aims to reduce the ultimate cost of the finished goods by purchasing materials at right price, right time on right quality in right quantity from right source at right place through right mode of transportation. Right price means purchasing at lowest price by proper planning and through proper negotiation. Right quality means desire quality specifications should be made after due measurement. The specifications are laid down by user department while preparing indents. Sometimes drawings are also attached to indents. Right time is decided on the basis of lead time for different items. Lead time is the total time gap between identification of need of an item and the time at which item is available for use after arrival. The lead time consists of four components such as,

  1. Pre-contractual administrative time.
  2. Manufacturing time.
  3. Transportation time.
  4. Inspection time.

Right source is the one which is dependable and can supply items of consistent quality over period of time. Selection of right transportation method is also important, as transportation method will decide the time for transportation and the ultimate cost of the product.

Right quantity is to be decided after considering factors like availability of item, price structure, discounts, relationship with supplier and should be based on knowledge and experience of buyer. Negotiations are an integral part of purchasing. Availability, number of sources, price, delivery, penalty, discounts, transportation method etc. Are some of the parameters affecting process of negotiation.

Procurement Cycle Budget

Procurement Cycle budget indicates the requirements of direct and indirect material and purchased services as set out in production cost and capital expenditure budget. These requirements should be expressed in physical and fiscal terms to the extent possible. Main purpose of purchase budget is to plan purchases and place long term contract after considering relevant aspects. Second purchase is to plan cash requirement

Purchase Method / Procedures

User department authorizes purchase department to make purchases by three method such as,

  1. Through purchase requisition or materials indent form.
  2. Through permanent order card or travelling requisition.
  3. Through various part list made in conjunction with production department.

The Purchase Requisitions

The department needs material prepares material requisition usually on the materials indent form.

This requisition is generally, made in duplicate, one copy each for the department raising requisition and for purchase department. Purchase requisitions are signed only by the person authorized by the management. The authority to sign is generally linked to the seniority and the value of purchase made. The value limits linked to the seniority designation of the person like general manager, manager, deputy manager, officer etc. May be prescribed by the management. The name of authorizing officers along with their sanctioning financial limits must be available in writing with the purchase department. Generally capital equipment purchases are handled by top management.

Permanent Order Card (TR) Traveling Requisition

This method is used for those items, which are required to be purchase repeatedly in bulk quantities. Generally, these are items regularly stopped in stores. The travelling requisition is permanent card, which records all detail of the material. As most of the detail required are already available on this card, it saves time and reduces paper work. It also avoids errors, which may occur while translating the information into usual purchase requisition. It also automatically creates a record of transaction for a particular item.

The stock control clerk sends TR to the purchase department when the stock level reaches the reorder level. To avoid mistakes a colored strip is attached to the stock cards. On receipt of TR, purchase department finalizes the source, quantity to be ordered and passes the card further for typing of the purchase order. The number of purchase order is then entered on TR and it is returned to the stock clerk.

Bill of Materials Of Parts List

Bill of materials is a list of various materials, which are required to make a particular product. This is also called as part list. Production schedule is converted into the bill of materials which indicates materials required and the timing when they are required. This helps purchase department to exactly understand the quantity and timing of various materials required. Purchase department consultants stock control department for items, which are already in stock and purchases balance items. It is expected that the department making requisition should give all details to purchase department like specification, account head, functional requirements, etc. For better choice and reduced price.

Contents of Purchase Order

Procurement department may send inquiries to probable suppliers to quote rates for supply of materials. Once the supplier is selected and rates are finalizing the purchaser gives purchase order to the supplier, which is a contract expressing terms and conditions of supply.

Generally purchase order contains details such as,

  1. P.O. Reference number.
  2. Description and specification of materials to be supplied.
  3. Quantity and delivery schedule, if any.
  4. Price discounts payment terms.
  5. Shipping transport instructions.
  6. Location where materials are to be delivered.
  7. Signature of materials manager.
  8. Other standard terms and condition usually printed on reverse sideThe P.O. Is in multiple copies. Original and one additional copy being sent to supplier for giving acceptance, and the balance copies one each to department raising acquisition accounts department and the receiving department or stores.

Follow Up

Items are classified into fast moving and slow-moving items depending upon their movement. Depending on the items, time and frequency of follow-up can be decided. In order to ensure selective follow-up p.o. Status reports are prepared. These are printed parts number wise or supplier wise to make necessary follow up.

Receiving Inspection

Receiving is an important control point in the purchase system. The materials received are checked for quantity and quality against the purchase order. A systematic record of consignment received, carrier details and description would enable quick identification of materials. Secondly, it can reflect the suppliers, which supply materials late or provide split deliveries.

Inspection of received materials should be done by the qualified and experienced staff in receiving department. After inspection goods received note GRN is prepared by the receiving clerk. If goods are rejected, rejection report is prepared. Similarly, a separate report is prepared for short received on excess supply.

Checking And Payment Of Suppliers Bill

The supplier sends the invoice for the material supplied for payment. This invoice / bill is checked by purchase department of accounts department against purchase order and GRN. Once the bill is checked the payment to the supplier is made by cheque.

It is expected that each organization should define its purchase policy giving broad statement of procedure on principles laid down to guide executive action. Policy gives direction and overall boundaries within which activities related to purchase function must occur.

It is obvious that once policy is finalized, operating procedures to implement policy must be develop. Operating procedures are expected to define a series of steps to be taken to accomplish a task. Hence, this should be a simple and result oriented. It is also necessary that these procedures should enable from communications between different departments and avoid burden of paperwork.

Special Procurement Cycle System

Forward Buying

Forward buying depends upon availability of item, the economic order quantity, discounts available, delivery schedule and funds available with organization. In manufacturing organization, speculative buying is not this sorted to, which generally aims at making capital out of price fluctuations. In commodities market “hedging” is common where contracts are sold on brought.

Tender Buying

Tender buying is generally undertaken by state, central, government departments and public-sector undertakings. Initially bids are sought from registered bidder, suppliers. These bids are evaluated by comparing quotations. Generally, order is given to the lowest bidder, however other aspects like quality, reliability of supplier are also considered.

Market Order

This is used for ‘c’ class items required frequently. This is a contract for supplying required quantity of items, say for one year, at fixed price. This system avoids paper work and enable to purchase material at lower prices due to quantity discounts. The delivery schedule should be incorporated in contract as per buyers needs

Zero Stock

Buyers firm does not stock any item but sailor holds inventory, due to which he charges higher price per unit for the item supplied. For buyer, this system avoids Procurement Cycle procedure, and fears of obsolescence of inventory. This also frees him to concentrate on other activities of organization.

Rate Contract

This system is mainly used in government departments and public-sector undertakings. Buyer and seller agree to the rates of items after negotiations. Rate contracts generally, indicate rates and not delivery period. Hence, suppliers demand higher rates for urgent deliveries. To avoid this problem, delivery of minimum quantity at the agreed rate is made. This is called as running contract. Railways dgs&d etc. Follow running contract system. The main advantage of this method is reduced reduction in internal administrative lead time.


When purchases are made from one customer in reference to other, it is called as reciprocal buying. Reciprocity encourages less efficient manufacturers and suppliers by assuring them gains, which would not have been possible by price and quality. Reciprocity should not be used in all purchases as it discourages competition and may lead to selective supplier and higher price.

Systems Contract

This is useful for items with low unit price and high quantitative demand. It primary aim to reduce administrative expenses coupled with necessary control. Original intent approved by appropriate authority is shipped back with the items, which avoids usual documentation like material requisition, purchase orders, follow up letter, etc. The contract mentions delivery period, price and invoicing procedures.

Export Promotion Council List.

Export Promotion Council

This is the List of Export Promotion Council Registration to do International Trade Exporters India.


Head Office


Office in Maharashtra

Agricultural & Processed Food Products Export Development Authority,

3 rd Floor, Ansal Chambers II, 6,Bhikaji Cama Place, New Delhi 110 066

Tel. : 011-612159/2148

Fax: 011-6195016

Agricultural & Processed Food Products Export Development Authority,


Tel. : 2183106/9060

Fax:  2189060


Apparel Export Promotion Council

15 NBCC Tower,

6 Bhikaji Cama Place,

New Delhi 110 066

Tel. : 011-6183351/6169393-4


Website: www.


Apparel Export Promotion Council

Bajaj Bhavan, 12 th Floor,

Nariman Point,

Mumbai-400 005

Tel. : 2853419/3420/2823800

Fax: 2043178


Website: www.


Basic Chemicals, Pharmaceuticals & Cosmetics

Export Promotion Council (CHEMEXCIL)

Jhansi Castle, 4 th Floor,

7, Cooperage Road, Mumbai-400 039

Tel.: 2202 1288 /1330/6549

Fax: 2202 6684

Basic Chemicals, Pharmaceuticals & Cosmetics

Export Promotion Council (CHEMEXCIL)

World Trade Centre, Centre 1, 12 th Floor,

Cuffe Parade,  Mumbai-400 005.

Tel.: 2218 8344 / 8339


Website: www.

Carpet Export Promotion Council

110-A/1, Krishna Nagar (Gali No.5)

Safdarjung Enclave, New Delhi 110029

Tel.: 011- 6102742/1024

Fax: 011-616 5299





Cashew Export Promotion Council of India.

P.B.No.1709, Chitoor Road,

Ernakulum South, Cochin 682 016

Tel.: 0484-361 459 /369 080/ 353 357

Fax: 0484 370973



Chemical & Allied Products Export Promotion

Council ( CAPEXIL)

14/1 B, 2 nd Floor. World Trade Centre, Ezra Street, Calcutta 700 001

Tel. :  033-220 7620

Fax: 033 -225 5070

Email: 1)



Chemical & Allied Products Export Promotion

Council ( CAPEXIL)

D-17. Commerce Centre, Taredo Road,

Mumbai 400 034

Tel.: 494 3410

Fax : 493 7665

Email :


Coffee Board.

1.       Dr, Ambedkar Veedhi

Bangalore-560 001

Tel : 080-22 2917/0250

Fax : 080-226 5557


Coir Board

Coir House

M.G. Road, Ernakulam South

Cochin 682 016

Tel.: 351807/788

Fax : 370034



Cotton Textiles  Export Promotion Council

Engineering Centre

9,Mathew Road, Mumbai-400 004

Tel: 2363 2910-13

Fax: 2363 2914

Email :


Cotton Textiles Export Promotion Council.

Cecil Court, 26 Mahakavi Bhushan Marg

Mumbai-400 039

Tel: 202 1477/ 1522 /7221

Fax: 202 2510

Email :

Council for Leather Exports

Leather Centre

53, Raja Muthiah Road,

Chennai 600 003

Tel: 044-589 098/ 582 041 /580 834

Fax: 044-588 713/ 587 083

Email :

Council for Leather Exports

11/4, World Trade Centre, Centre 1,

Cuffe Parade, Mumbai 400 005

Tel: 218 4060

Fax: 215 1207

Email :

Electronics & Computer Software Export

Promotion Council

PHD House, 3 rd Floor, Ramakrishna Dalmia Wing.

Off. Asiad Village

Tel. : 011-696 5103/4463

Fax : 011-651 0632/ 685 3412

Email :



Engineering Export Promotion Council

World Trade Centre, 1 st  floor

14/1 B Ezra Street,

Calcutta 700 001

Tel : 033-250 442 /443

Fax : 033-225 8968

Email :

Engineering Export Promotion Council

World Trade Centre, 1

Cuffee Parade

Mumbai -400 005

Tel : 218 6655/56/60

Fax : 218 0119


Federation of Indian Export Organisations

PHD House, 3 rd Floor,

Opp, Asian Games Village.

New Delhi 110 016

Tel : 011-685 1310/ 312/ 314

Fax : 011-686 3087

Email :

Federation of Indian Export Organisations

World Trade Centre, 1  11th  Floor, Cuffee  Parade, Mumbai – 400 005

Tel : 218 5093/3354

Fax : 218 3875

Email :

Gem & Jewellery Export Promotion Council

Diamond Plaza

391-A, Dr. B.Bhandkamkar Marg.

Mumbai 400 004

Tel. 2382 1801 / 06 /385 6916

Fax.: 2386 8752

Email :


Gem & Jewellery Export Promotion Council

Diamond Plaza

391-A, Dr. B. Bhandkamkar Marg.

Mumbai 400 004

Tel. 2382 1801 / 06 /385 6916

Fax.: 2386 8752

Email :


Handloom Export Promotion Council

18 ,Chatedral Garden Road ,Nungambakam

Madras 600 034

Tel.: 044-827 8879 /6043

Fax:  044-827 1761



Indian Silk Export Promotion Council

62, Mittal Chambers, Nariman Point

Mumbai 400 021

Tel:, 2202 5866 /7662/204 9113

Fax : 2287 4606

Email :

Marine Products Export Development Authority


Panampilly Nagar Avenue

Cochin 682 015

Tel.: 0484-311 979-83

Fax : 0484-313361


Website: www.mpedacom


Indian Silk Export Promotion Council

62, Mittal Chambers , Nariman Point

Mumbai 400 021

Tel:, 2202 5866 /7662/204 9113

Fax : 2287 4606

Email :

Marine Products Export Development Authority

605, Regent Chambers

Nariman Point

Mumbai 400 021

Tel.: 283 1399

Fax : 283 4354

Email:mpeda.bombay@ smx.sprintrpg.ems.vsnl.Net 


Website: www.mpedacom


Overseas Construction Council of India

H-118 Himalaya House

23 , Kasturba Gandhi Marg

New Delhi 110 001

Tel.: 011-372 2425/332 7550

Fax : 011- 3312936

Overseas Construction Council of India

Commerce Centre. 7 th Floor,

Tardeoi Mumbai 400 034

Tel.:  494 3243/2344

Fax : 495 0507


Plastic & Linoleums Export Promotion

World Trade Centre

Centre 1,  11th floor,

Cuffee  Parade, Mumbai 400 005

Tel.:  2218 4474/456

Fax : 2218 4810

Plastic & Linoleums Export Promotion

World Trade Centre

Centre 1,  11th floor,

Cuffee  Parade, Mumbai 400 005

Tel.:  2218 4474 / 456

Fax : 2218 4810


Website: www.

Powerloom Export Promotion Council

Cecil Court, ‘B’ Wing 4 th floor,

Mahakavi Bhushan Marg

Colaba, Mumbai 400 039

Tel.:  2284 6518/19

Fax : 2284 6517

Powerloom Export Promotion Council

Cecil Court, ‘B’ Wing 4 th floor,

Mahakavi Bhushan Marg

Colaba, Mumbai 400 039

Tel.:  2284 6518/19

Fax : 2284 6517

Email: pdexcil.pdepc

Website: http://

Rubber Board

Shastri Road P.B. No.1122 Kottayam 686 002

Tel.:  0481-571 231/2/5/6/361

Fax :  0481-571 380


Shellac Export Promotion Council

14/ a B Ezra Street

World Trade Centre

Calcutta 700 001

Tel.:  25-4556

Fax :  033-248 4046 / 1 F-384 &

033-248 2070/1 F-384


Spice Board

Sugandha  Bhavan

Cochin N.H. Bye Pass Road

Palarivattam P.B.No. 2277

Cochin  682 025

Tel.:  04894-333 610

Fax :  0484-331 429

Spice Board

Panchli Hospital Building , 2 nd floor

90 ft. Road

Nath Pai Nagar, Ghatkopar

Tel.:  512 1471/ 3673

Fax :   514 3673

Sports Goods Export Promotion Council

2 nd  Floor, 1-E/6 Swami Ram

Tirth Nagar New Delhi 110 055

Tel.:  011-525 695

Fax :  011-753 2147


Synthetic & Rayon Textiles Export Promotion Council

Resham Bhavan

78’ Veer Nariman Road

Mumbai – 400 020

Tel.: 204 8797 / 8690 /0168

Fax :  204 8358


Synthetic & Rayon Textiles Export Promotion Council

Resham Bhavan,78’ Veer Nariman Road

Mumbai – 400 020

Tel.: 204 8797 / 8690 /0168

Fax :  204 8358

Email :



Tea Board

14 B. T.M. Sarani

Calcutta 700 001

Tel, : 033-225 1411

Fax : 033-225 1417


Tea Board

78, Reham Bhavan ,

Veer Nariman Road.

Mumbai- 400 020

Tel, : 2204 1699

Tobacco Board

Shrinivas Rao Thota

G.T. Road, P.B. No.322 Gunture, Andhar Pradesh

Tel. : 522 004


Wool & Woollen Export Promotion Council

612/714 Asoka Estate

24, Barakhamba Ropad

New Delhi 110 001

Tel.: 011- 331 5512

Fax :  011- 331 4626

Email :


Wool & Woollen Export Promotion Council

Churchgate Chambers

5, New Marine  Lines,

Mumbai 400 020

Tel. : 262 4651 / 4680

Fax : 262 4651


Jt. Director General for Foreign Trade

(For Exim Policy )


Reserve Bank of India

(For Exchange Control Manual

Website :

This is the List of Export Promotion Council Registration to do International Trade Exporters India.


Indian Agricultural Exports Imports

Common Steps involved in starting export import business in India.

What is Export in exporters India?

Indian Agricultural Exports Imports,As per Section 2(e) of Foreign Trade (Development & Regulation) Act. 1992, the term ‘export’ is defined to mean ‘taking out of India any goods by land, sea or air’.

As such, the goods must leave India, or cross the customs frontiers of India to a foreign destination, for being reckoned as export.

However, certain supplies of goods by main/sub-contractors to specified persons (who ultimately export such goods in the same form or after further processing) are reckoned at par with exports and thus called  popularly as ‘deemed  exports’.

Such supplies are specified in chapter 8 of the Foreign Trade Policy.

Common Steps involved in starting export import business in India.

  • Setting up of a most suitable type of business organizations.
  • Obtaining PAN from Income Tax Authorities, Securing Importer-Exporter Code No. from the Regional Licensing Authority, and Registration-cum-Membership Certificate from the concerned Export Promotion Councils, and Registration with the concerned VAT/Sales Tax Authorities etc. Obtaining registration as small scale industrial unit, medium or large scale unit or as a service provider from the concerned authorities.
  • Doing Export Business Correspondence.
  • Sending/Exporting samples and exhibits.
  • Appointing overseas agents.
  • Negotiating with prospective Buyers and entering into export Contracts.
  • Understanding new Foreign Trade Policy and Procedures.
  • Obtaining Credit Limit for the Buyer/Buyer’s Country from E.C.G.C.
  • Obtaining Finance for Export.
  • Booking Forward Exchange Contracts for Avoiding Loss from Adverse Exchange Rate
  • Ensuring Compliance with Quality Control and Pre-shipment Inspection of Goods.
  • Labelling, Packaging, and Marketing Export Consignments.
  • Obtaining Excise Clearance.
  • Arranging Marine Insurance of the Goods.
  • Complying with the Exchange Control Regulations regarding Declaration of Goods.
  • Preparing /Obtaining Export Documents.
  • Shipping and Customs clearance of the Goods and Indian Customs EDI System.
  • Tendering the Documents to the Bank.
  • Understanding Foreign Exchange Regulations and Facilities.
  • Obtaining various Facilities under the new Foreign trade Policy 2004-09
  • Obtaining export incentives under the Duty Drawback Scheme, Natural Rubber Subsidy Scheme, Marketing Development Assistance etc.
  • Reimbursement of Central Sales Tax.
  • Availing Tax Exemptions /Deductions under the Income Tax Act and sale Tax Laws.

Starting export import business in India.

  • Choosing appropriate mode of operations.

You can choose any of the following modes of operations:

  1. Merchant Exporter i.e. buying the goods from the market or from a manufacturer and then selling them to foreign buyers.
  2. Manufacturer Exporter i.e. manufacturing the goods yourself for export.
  • Sales Agents/ Commission Agent/Indenting Agent i.e. acting on behalf of the seller and charging commissions.
  1. Buying Agent i.e. acting on behalf of the buyer and charging commission.
  2. Service provider i.e. providing service from India to another country.
  • Naming the export import business in India.

Whatever the form of business organization has been finally decided, naming the business is an essential task for every exporter.

The name and style should be soft. Attractive, short and meaningful. Simple and attractive name indicating the nature of business is ideal.

The office should be located preferably in a commercial complex, in clean and workable surroundings. The letterhead should be simple and super providing information concerning Registered Office, Head Office, and Corporate Office. Email address, telephone number, fax, mobile number, bankers name and address etc.

Pick up a beautiful trade name and logo which reinforce your organisation’s name and image.  Open a current account with a reputed Bank in the name of the Organisation in whose name you intend to export.

It is advisable to open an account with the Bank that is authorized to deal in foreign exchange.

  • Selecting the Product to exporters India.

Carefully select the product to be exported.  For proper selection of the product, study the trends of export of different items from India.

The selected product must be in demand in the countries where it is to be exported.  It should be possible to procure or manufacture the selected product at most economical cost so that it can be competitively priced.

If should also be available in sufficient quantity acceptable quality standards; attractive packaging and it should be possible to supply it repeatedly and regularly.

Besides, while selecting the product. If has to be ensured that you are conversant with Government policy and regulations in respect of the products selected for export.

You should also know import regulations in respect of such commodities by the importing countries. If would be preferable if you have previous knowledge and experience of commodities selected by you for export.

A non-technical person should avoid dealing in high-tech products.  Another important feature to be kept in mind is that product should be adapted as per market requirement.

  • Making effective Business Correspondence import export companies.

Business communication is an interaction which clarifies issues. Resolves conflicts  and misunderstanding and helps in decision making.

Messages also reflect many angles and levels: factual, emotional and cultural. With the information technology modes and paperless communication being used.

Conveyance of information amongst the interacting parties will speed up and these will cut down on the business process costs and times. Technologically advanced media are required to be used in business communication.

For creating a very favorable and excellent impression, you must use a decent  letterhead on airmail paper and a good envelope, nicely printed, giving full particulars of your firm’s name, postal address, telephone number, mobile number, fax number and email address etc.

Your language should be polished, polite, soft, brief and to the point, giving a very clear picture of the subject to be put before the customer.

Letters should be typed/computer typed set, preferably in the language of the importing country.  Also make sure that the full and correct address is written and the envelope is duly stamped.

Selecting the Overseas Market the help of import export data.

Overseas markets are identified as traditional, potential and new.  Target markets should be selected after careful consideration of various factors like political relations of India with the importing country, embargo, scope of exporter’s selected product, demand stability.

Preferential treatment to products from developing counties, market penetration by competitive countries and product, distance of potential market, transport problems, language problems.

Tariff and non-tariff barriers, distribution infrastructure, six of demand in the market, expected life span of market and product requirements, sales and distribution channels.

For this purpose you should collect adequate market information before selecting one or more target markets.

The information can be collected from various sources like Export Promotion Councils (Epics) /Commodity Boards.  Federation of Indian Export Organisation (FIEO).  Indian Institute of Foreign Trade (IIFT).  Indian Trade Promotion Organisation (ITPO).

Indian Embassies and High Commissions abroad, Foreign Embassies and High Commissions in India. Import Promotion Institutions Abroad, Overseas Chambers of Commerce & Industries.

Various Directories, and Journals, market Survey Reports etc.

  • Selecting prospective overseas buyers and importers in USA.

You can collect address of the prospective buyers of the commodity from the following sources:

  • Enquiries from friends and relatives or other acquaintances residing in foreign countries.
  • Visiting /participating in International Trade Fairs and Exhibition s in India and abroad.
  • Contact with the Export Promotion Councils, Commodity Board and other Govt. Agencies.
  • Consulting International Yellow Pages. (A publication from New York) by Dun & Bradstreet, USA or other Yellow Pages of different Counties like Japan, Dubai etc.)
  • Collecting address from various Private Indian Publications.
  • Collecting information from international Trade Directories/Journals/Periodicals available in the libraries of Directorate General of Commercial Intelligence and Statistics, IIFT, EPCs, ITPO etc.
  • Browsing the Internet.
  • Making contacts with Trade Representatives of Overseas Governments in India and India Trade and Other Representatives/International Trade Development Authorities abroad).
  • Reading biweekly, fortnightly. Monthly bulletins such as Indian Trade Journal, Export Service Bulletin, Bulletins and Magazines issued and published by Federation of Exporters Organisation, ITPO, EPCs, Commodity Boards and Other allied agencies.
  • Visiting Embassies, Consulates etc. of other countries and taking note of addresses of importers for products proposed to be exported.
  • Advertising in newspapers having overseas editions and other foreign newspapers   and magazines etc.
  • Consulting ITPO. IIFT etc.
  • Contacting authorized dealers in foreign exchange with whom exporter is maintaining bank account.
  • Visiting popular Websites by making use of Internet Services.
  • Creating a detailed Website about your Organisation.

How to contact Overseas Importers in USA?

  • -By corresponding and sending and sending brochure and product literature to prospective overseas buyers.
  • -By undertaking trips to foreign markets and establishing personal rapport with overseas buyers. The number of trips will depend on you budget and resources. But it is essential for long term success in international marketing to establish personal rapport.  Foreign trip will provide first-hand information regarding the market.  Overseas customers, their requirement, taste. Preference and better out communication about the merits of exporter’s products.
  • -MSME units can take the help of SIDO’s Scheme- SSI MDA.
  • -Participation in buyers-sellers meet and meeting the members of foreign delegation invited by Export Promotion Council Concerned.
  • -Participation in International Trade Fairs, Exhibitions, Seminars and Buyer’s Sellers meet. Trade Fairs held in India as well as important world Centres provide contacts with a large number of buyers if an exporter has good quality products with reasonable price. These fairs are expensive, no doubt but such expenses are covered by future business.
  • -Advertisement and publicity in overseas reputed newspapers and magazines as well as in popular websites which people usually visit. Facilities of free publicity can be availed from Import Development Centres.
  • -Creating Websites and making it popular on international arena.
  1. Selecting Channels of Distribution from exporters India.

The following channels of distribution are generally utilized while exporting to overseas


  • Exports through Export Consortia.
  • Export through Canalizing Agencies.
  • Export through Other Established Merchant Exporters or Export Houses. Or Trading Houses.
  • Direct Exports.
  • Export through Overseas Sales Agencies.
  • Exports through e-Commerce which is in developmental stage in India.
  • Negotiating with Prospective Overseas Buyers and importers in USA.

Whatever the channels or distribution for exporting to the overseas countries is proposed to be Utilized, it is essential that the exporters should possess necessary skill for negotiating with the overseas channels of distribution. The ability to negotiate effectively is needed for discussion with importers or trade agents.

While conducting business negotiations, the prospective exporter should avoid conflict, controversy and criticism vies-a-vies the other party.

During conversation the attitude should be to communicate effectively. There should be eight ‘Cs’ i.e. coherence. Creativity, compromise. Concessions. Commonality. Consensus.  Commitment and compensation in business negotiations.

The general aspect to be kept in mind by you is about pricing.  The buyer’s contention is that prices are too high.  It should be noted that though the price is only one of the many considerations which are discussed during business negotiations, if influences the entire negotiating process.

Since this is the most sensitive issue in business negotiations, it should be fully postponed until all the other issues have been discussed and mutually agreed upon.

As far as the price is concerned, you should try to determine the buyer’s real interest in the product from the outset, only then a suitable counter proposal should be presented.

It should also be remembered that the buyer may request modifications in presentation of the product. You should show the willingness to meet such request, if possible, provided that it will result in profitable export business.

Price being the most important sales tool, it has to be properly developed and presented. Therefore, in order to create a favourable impression, minimize costly errors and generate repeated business.

The following points should be kept in mind while preparing the price list:

  1. Submit a computer printed list, printed on a regular bond paper and laid out simply and clearly (with at least an inch between column and between groupings.)
  2. Prominently, indicate the name of your company, its complete address, telephone number, mobile number and fax numbers and email address, including the country and city codes.
  3. Fully describe the items being quoted.
  4. Group the items logically (i.e. the fabrics together, all the made ups together etc.)
  5. Specify whether shipped by sea or by air, f.o.b.,or c.i.f., and to which port.
  6. Quote exact amount and not rounded off figures.
  7. Mention the dates up to which the prices quoted will remain valid.
  8. Where there is an internal reference number which must be quoted try to keep it Mention as short as possible (the buyer has no interest in the detail and the more complex it is, the greater the risk of errors. As regards the factors determining your price, please refer to the papa on ‘Export Pricing and Costing ‘further in the chapter.
  9. Clearly mention payment terms required by you.
  10. Preshipment inspection should be well defined.

One main point regarding export pricing is that while negotiating with overseas buyer.  You may not remember the cost of a product.

It may also be difficult for you to remember the profit margin built in various prices quoted by you.  A clear jotting of this information is not free from the risk of being leaked out to the competitors or to the overseas buyers.

Some coding is, therefore, essential for the prices quoted by you so that at any stage/ point of time, you can always utilize the information enabling you to profitably negotiate with the overseas buyers.

This can be done by assigning codes to the cost prices

Processing an Export Order as a exporters India.

You should first acknowledge the export order, and then proceed to examine carefully in respect of items, specification, Pre-shipment inspection, payment conditions, special packaging, labeling and marketing requirements, shipments and delivery date, marine insurance, documentation etc.

and if you are satisfied on these aspects, a formal confirmation should be sent to the buyer, otherwise clarification should be sought from the buyer before confirming the order.

After confirmation of the export order immediate steps should be taken for procurement/manufacture of the export goods. In the meanwhile, you should proceed to enter into a formal export contract with the overseas buyer.

 Entering into export Contract as export import Business.

In order to avoid disputes, if is necessary to enter into an export contract with the overseas buyer. For this purpose. Export contract should be carefully drafter incorporating comprehensive but in precise terms.

All relevant and important conditions of the trade deal. There should not be any ambiguity regarding the exact specific actions of goods and terms of sale including export price.

Mode of payment, storage and distribution methods, type of packaging.  Port of shipment, delivery schedule etc.  The different aspects of an export contract are enumerated as under:

  1.    Product, Standard and Specifications.
  2. Total Value of the contract.
  3. Terms of Delivery.
  4. Duties and Charges,
  5. Period of Delivery/Shipment.
  6. Labelling and Marking.
  7. Terms of Payment – Amount /Mode and Currency.
  8. Discounts and Commissions.
  9. Licences and Permits.
  10. Documentary Requirements.
  11. Force Majeure of Excuse for Non-Performance of Contract.

It will not be out of place to mention here the importance of arbitration clause in an export contract. Court proceedings do not offer a satisfactory method for settlement of commercial disputes as they involve inevitable delays, costs and technicalities.

On the other hand, arbitration provides an economics, expeditious and informal remedy for settlement of commercial disputes.

Arbitration proceedings are conducted in privacy and the awards are kept confidential. The Arbitrator is usually an expert in the subject’s matter of dispute.

The dates for arbitration meetings are fixed with the convenience of all concerned. Thus arbitration is the most suitable way for the settlements of commercial disputes and it may be invariable used by the businessmen in their commercial dealings.

Export Pricing and Costing to importers in USA

Export pricing should be differentiated from export costing. Price is what we offer to the customer. Cost is the price that we pay/incur for the product. Price includes our profit margin.  Cost includes only expenses. We have incurred.

Export pricing is the most important tool for promoting sales and facing international competition. The price has to be realistically worked out taking into consideration all export benefits and expenses.

However there is no fixed formula for successful export pricing. It will differ from exporter to exporter depending upon whether the exporter is a merchant agency.

You should also assess the strength of your competitor and anticipate the move of the competitor in the market. Pricing strategies will depend on various circumstantial situations.

You can still be competitive with higher price but with better delivery package or other advantages. Your prices will be determined by the following factors:

  • Range of products offered.
  • Prompt deliveries and continuity in supply.
  • After Sales Service in products like machine tools, consumer durables.
  • Product differentiation and brand image.
  • Frequency of purchase and total Annual Requirement.
  • Presumed relationship between quality and price.
  • Specialty value goods and gifts items.
  • Credit Offered.
  • Preference or prejudice for products originating from a particular source.
  • Aggressive marketing and sales promotion;
  • Prompt acceptance and settlement of claims:
  • Unique value goods and gift items.

Indian Agricultural Exports Imports.

How to get Import Export licence to do import export business in India.

How to get Import Export licence to do import export business in India

How to get Import Export licence to do import export business in India.


Registration of Exporters India. (How to get Import Export licence to do import export business in India)


  1. Registration with Reserve Bank of India no more required.

Prior to 1.1.1997, it was compulsory for every exporter to obtain an exporters’ code number from Reserve Bank of India before engaging into export.  This has since been dispensed with and registration with the licensing authorities is sufficient before commencing export or import export.

  1. Registration of Exporters India with Regional Authorities of Director General of Foreign Trade (Obtaining Importer-Exporter Code Number)

The Customs Authorities will permit you to import export or export goods into or from India only if you are holding goods to Nepal or to Myanmar through Indo-Myanmar through Indo-Myanmar Border areas or to China through Gunji, Namgaya, Shipkila or Nathula ports, you are not required to obtain IEC ONLINE CODE number provide the CIF value of a single consignment does not exceed Indian Rs. 25000/-

Application for Grant of IEC ONLINE CODE (import and export licence number) Code.

An application for grant of IEC CODE i.e. imports and export licence number shall be made by the Registered/Head Office of the applicant to the Regional Authority (list given in Appendix II) under whose jurisdiction the Registered Office in case of company and Head office in case of others, falls in the ‘Aaayaat Niryaat Form (ANF 2 A) given in Appendix 1 (in duplicate) and shall be accompanied by documents prescribed therein.  In case of STPI/EHTP/BTP units, the Regional Office of the DGFT having jurisdiction over the district in which the Regional / Head Office of the STPI UN it is located shall issue or amend the IECs.

Only one IEC CODE would be issued against a single PAN number.  Any proprietor can have only one IEC number and in case there are more than one IEC ONLINE CODE i.e. import and export licence code allotted to a proprietor, the same may be surrendered to the Regional Office for cancellation.

Before applying for IEC CODE number it is necessary to (i) obtain Permanent Account Number from the Income Tax Authorities and (ii) open a bank account in the name of your company/firm with any commercial bank authorized to deal in foreign exchange.  The procedure of application for IEC CODE No. has been simplifie3d since August 2006. The new system also allows online submission of the application.  An applicant may now choose:-

  • To file on online application and submit a physical copy of the application by taking print out of the online application.
  • To submit the application in physical form directly at the regional DGFT Office.

Process of Online Application how to get import export licence.

  1. Applicants can file an on-line application at the DGFT website online form has been designed to ensure feeding of all the required information by prompting user wherever a field is left blank. Applicant has to submit scanned copies of PAN and bank certificate along with their application.
  2. There are two options for payment of fee (A) If fee is paid by Demand Draft, IEC CODE will be generated only after receipt of the physical copy of the application (B) If IEC CODE application fee is paid through Electronic Fund Transfer facility, IEC CODE number will be generated by the licensing office automatically and the number can be viewed online by the applicant.
  • On the receipt of physical copy of the application, the same IEC will be printed in 24 hours’ time and dispatched to the firm.

Procedure for Physical Application i.e. how to get import export licence.


The duly signed application form should be supported by the physical documents:

  • Bank Receipt (in duplicate) /Demand Draft/ EFt details evidencing payment of application fee of Rs.1000 (Rs.500 for Electronically filed application ) in terms of Appendix 21 B of the Foreign Trade Handbook of Procedure, April 2007 Ed.
  • Certificate from the banker of the application firm in Part B of the form.
  • Self-certified copy of Permanent Account Number (PAN) issued by Income Tax Authorities.
  • Two copies of passport sixed photographs of the applicant.
  • Photograph on the banker’s certificate should be attested by the banker of the applicant.
  • Self-addressed envelope and stamp of Rs.30.
  • These documents may be kept secured in a file cover.

The Regional Authority concerned shall grant an IEC CODE number to the applicant in the prescribed format.  A copy of such IEC ONLINE CODE number shall be endorsed to the concerned format.  A copy of such IEC ONLINE CODE number shall be endorsed to the concerned banker.  The number should normally be given within two working days provided the application is complete in all respects and is accompanied by the prescribed documents.

An IEC CODE number allotted to an applicant shall be valid for all its branches/divisions/units/ factories as indicated on the IEC CODE number.

Hints for filling IEC CODE Applications.

  • Application must be made in the prescribed form in duplicate, duly accompanied by Bank Receipt/Demand Draft evidencing payment of fee.
  • Application form should be neatly typed / handwritten in bold capital letter only.
  • Each page of the application form should be signed in ink by the authorized person.
  • Supporting documents in duplicate, duly self-attested as specified earlier in this Chapter must be enclosed wherever applicable.
  • Items of information relevant to applicant should only be filled in and remaining items may be marked ‘not applicable’
  • Two copies of the passport size photograph of the applicant duly attested by the applicant’s banker shall be submitted.
  • Modifications of particulars of the applicant should also be furnished on this form by filling the relevant items.

Duplicate Copy of IEC No.

Where an IEC no. is lost or misplaced the issuing authority may considered request for grant of a duplicate copy of IEC ONLINE CODE number, if accompanied by an affidavit and a fee of Rs.200/-

Surrender of IEC No.

If an IEC ONLINE CODE holder does not wish to operate the allotted IEC ONLINE CODE number he may surrender the same by informing the issuing authority.  On receipt of such intimation, the issuing authority shall immediately cancel the same and electronically transmit to DGFT for onward transmission to the Customs and Regional Authorities.

Registration with Export Promotion Councils /Commodity Board / Authorities.

In order to enable you to obtain benefits/concessions under the Foreign Trade Policy. You are required to register yourself with the concerned Export Promotion Council or Commodity Board or Authority by obtaining registration-cum-membership (RCMC) for this purpose you should apply in the prescribed form given at Appendix III of this Book to the Export Promotion Council relating to your main line of Business.  However. A status holder has the option to obtain RCMC from Federation of Indian Exporters India Organisation (EIEO).  Exporters India of Drugs and Pharmaceutical shall obtain RCMC from Pharmexcil only.  Exporters of minor forest produce and their value added products shall obtain RCMC from Shellac Export Promotion Council (SHEFEXIL).  Software exporters India shall register themselves with Electronic and software Export Promotion Council.

An application for registration should be accompanied by a self-certified copy of Imports exporter-Exporter Code Number issued by the Regional Authority concerned and bank certificate in support of the applicant’s financial soundness, if the applicant is already registered with any other EPC, a copy of RCMC should be furnished.  In case an exporter desires to get registration as a manufacturer exporter, he should furnish evidence to that effect. In the case of manufacturer Exporter, the licensing authority may seek copy of registration with SSI/any other sponsoring authority in addition to the application in the prescribed form.  Membership fee should be paid in the form of cheque /draft after ascertaining the amount from the EPC concerned.  Service provider will furnish copy of registration/approval from the concerned authority.  If the application for registration is granted, the EPC or FIEO shall issue the RCMC indicating the status of the applicant as merchant exporter or manufacturer exporter.

Registration with Tax Authorities now applies is GST.

Goods which are to be shipped out of the country for exports are eligible for exemption from both value Added to and Central Sales Tax. For this purpose, you should get yourself registered with the Value Added Tax Authority of your State after following the procedure prescribed under the value Added Tax Act applicable to your State.

Registration with Central Excise Authorities.

Goods meant for exports are exempt from Central Excise duty.   For this purpose the manufacturer and merchant exporters India have two options. Either they can deposit Central excise duty at the time of clearance from factory and later on take refund or avail the procedure for exports of goods without payment of duty.

Obtaining Permanent Account Number (PAN)

Every person whose taxable income exceeds the basic exemption limit during an accounting year, is required to obtain Permanent Account Number (PAN) once for  ever by making an application in Form 49 A, before 31st May of the assessment year In case the total sales, turnover or gross receipts of the business or profession of the assesse, exceeds or is likely to exceed Rs. 5,00,000/- during an accounting year the application for allotment of PAN should be made before the end of the accounting year. It is compulsory to apply for PAN, in above cases even though the tax payable is nil.

Further, the following persons are compulsorily required to obtain PAN –

  1. Exporters India and importers, who are required to obtain an importer-exporter code.
  2. Assesse under the Central Excise Act.
  3. Persons issuing Cenvatable invoice under rule 57AE and registered under the Central Excise Rule, 1944;
  4. Service-tax assesses;
  5. Persons registered under the Central Sales Tax Act, 1956 or the general sales tax law of the appropriate State or Union Territory.

All above topic has been discussed in this import export course


How to get Import Export licence to do import export business in India.