Coupon Accepted Successfully!



Exporting and importing are quite complicated than buying and selling in the domestic market. A number of procedures are required to be carried out before the goods leave the boundaries of a nation and enter into that of another, as foreign trade dealings include transfer of goods across borders and use of foreign exchange.

Export Procedures

The number of steps and the sequence in which these are carried out from one export dealing to another. Listed below are a few steps involved in a typical export transaction:
  1. Acknowledgment of enquiry and sending quotations
  2. Acknowledgment of order or indent
  3. Evaluating importer's creditworthiness and fixed a guarantee for payments
  4. Acquiring export license
  5. Acquiring pre-shipment finance
  6. Manufacturing or procurement of goods
  7. Pre-shipment inspection
  8. Excise clearance
  9. Reservation of shipping space
  10. Packing and forwarding
  11. Insurance of goods
  12. Obtaining mates receipt
  13. Acquiring certificate of origin
  14. Customs clearance
  15. Payment of freight and issuance of bill of lading
  16. Preparation of invoice
  17. Securing payment

Import Procedure

Import trade refers to procurement of goods from a foreign nation. Import policy varies from nation to nation based upon the country's import and custom procedures and other statutory requirements. The paragraphs below discuss different steps involved in classic import dealing for bringing goods into Indian Territory.
  1. Enquiry about the trade
  2. Procurement of import license
  3. Obtaining foreign exchange
  4. Placing order or indent
  5. Obtaining letter of credit
  6. Arranging for finance
  7. Receipt of shipment advice
  8. Retirement of import documents
  9. Arrival of goods
  10. Customs clearance and release of goods

Foreign Trade Promotion

A variety of schemes and incentives are set up in the country to promote business companies to improve competitiveness of their exports. Periodically, the government has also set up a number of firms to give infrastructural support and marketing assistance to companies involved in foreign business.

International Trade Institutions

The First World War (1914-1919) and the Second World War (1939-45) saw deterioration of life and quality of life and property over the entire world. Nearly all the economies of the world were devastated vastly. Because of shortage of resources, nations were not able to undertake any rebuilding or developmental works. In addition, the international trade amongst countries was immensely affected due to the disturbance of the world's currency system. The exchange rate suffered and there was no generally accepted system. It was at that point that delegates of forty-four countries under the leadership of J.M. Keynes - a noted economist held hands at Bretton Woods, New Hampshire to predict ways to re-establish peace and bring back normal routine in the world. The meeting was ended with the setting up of three international institutions, namely the International Monetary Fund (IMF), International Bank for Reconstruction and Development (IBRD) and the International Trade Organisation (ITO). They believed these three bodies as three pillars of economic development of the world. While the World Bank was assigned with the responsibility of recreating war-affected economies - specifically the ones in Europe, the IMF was assigned the task of ensuring stabilization of exchange rates to give way for the development of world trade. The main aim and objective of the ITO as was predicted at that time was to encourage and smoothen foreign trade amongst the member nations by overcoming various limitations and discriminations that were being exercised at that time. The first two institutions, viz., IBRD and IMF were started at that time point of time. The idea of establishing ITO, nevertheless, was not effective because of strict opposition from the United States. Instead of a body, what finally evolved was an agreement to slacken foreign trade from heavy customs tariffs and other different kinds of limitations. This agreement was called as the General Agreement for Tariffs and Trade (GATT). India was one of the pioneer members of these three international organisations.

Test Your Skills Now!
Take a Quiz now
Reviewer Name