1. Unit 1
INTERNATIONAL MARKETING
International marketing (IM) or global marketing refers to marketing carried out by companies overseas
or across national borderlines. This strategy uses an extension of the techniques used in the home
country of a firm.[1] It refers to the firm-level marketing practices across the border including market
identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in
international markets.[2] According to the American Marketing Association (AMA) "international
marketing is the multinational process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational
objectives."[3] In contrast to the definition of marketing only the word multinational has been added.[3]
In simple words international marketing is the application of marketing principles to across national
boundaries. However, there is a crossover between what is commonly expressed as international
marketing and global marketing, which is a similar term.
The intersection is the result of the process of internationalization. Many American and European
authors see international marketing as a simple extension of exporting, whereby the marketing mix 4P's
is simply adapted in some way to take into account differences in consumers and segments. It then
follows that global marketing takes a more standardized approach to world markets and focuses upon
sameness, in other words the similarities in consumers and segments.
DIFFERENCES BETWEEN DOMESTIC MARKETING AND INTERNATIONAL MARKETING
International marketing strategies are developed by various multinational companies on a global level in
order to set a common brand platform for their products and brands. It is then passed on to each local
or domestic market which makes adjustments for their country and manages its implementation. Such a
structure ensures a global brand consistency, pricing and messaging. It also can have significant cost
savings as major advertising and marketing campaigns can be developed centrally.
Globalization has created new marketing behaviors, opportunities and challenges thereby making
international marketing somewhat different from domestic marketing. Due to deregulation and
technological advances in transportation and communication, companies can market in, and consumers
can buy from almost any country in the world. In this situation of heightened competition, it is
important for companies to offer products that would be of interest in the global marketplace and also
adjust their product and service features to each country’s different cultures and values. They must
choose what to produce, and how to price and communicate their products considering the different
legal and political differences, language, and currency fluctuations. To sum up, when multinational
companies segment their target markets and position their products, cross-cultural literacy is necessary,
which is a concept of globalization, requiring a company to “think globally and act locally”. Without an
understanding of cultural and structural differences between countries, even leading global
corporations can fail in specific markets.

2. INTERNATIONAL MARKETING ENVIRONMENT
Internal factor , these involve (5M's)
1. Management
2. Manpower
3. machine
4. material and
5. money.
External factors , these include
Macro factor and micro factors.
Macro factors are the one that affect the organization indirectly, these are (pestel)
1. Political
a. The political stability of the nation. Is it a democracy, communist, or dictatorial regime?
b. Monetary regulations. Will the seller be paid in a currency that they value or will
payments only be accepted in the host nation currency?
2. Economical
a. Consumer wealth and expenditure within the country.
b. National interests and inflation rate.
c. Are quotas imposed on your product.
d. Are there import tariffs imposed.
e. Does the government offer subsidies to national players that make it difficult for you to
compete?
3. socia-cultural
a. Language. Will language be a barrier to communication for you? Does your host nation
speak your national language? What is the meaning of your brand name in your host
country’s language?
b. Customs: what customs do you have to be aware of within the country? This is
important. You need to make sure you do not offend while communicating your
message.
c. Social factors: What are the role of women and family within society?
d. Religion: How does religion affect behaviour?
e. Values: what are the values and attitudes of individuals within the market?
4. Technological
a. The technological infrastructure of the market.
b. Do all homes have access to energy (electricity)
c. Is there an Internet infrastructure. Does this infrastructure support broadband or dial
up?
d. Will your systems easily integrate with your host country's?
5. Ecological

3. 6. leagal
while micro factors are those which affect the organization directly it involve
1. customers
2. competitors
3. suppliers and
4. public

4. Unit 2
FOREIGN MARKET ENTRY MODES
The decision of how to enter a foreign market can have a significant impact on the results. Expansion
into foreign markets can be achieved via the following four mechanisms:
Exporting
Licensing
Joint Venture
Direct Investment
Exporting
Exporting is the marketing and direct sale of domestically-produced goods in another country. Exporting
is a traditional and well-established method of reaching foreign markets. Since exporting does not
require that the goods be produced in the target country, no investment in foreign production facilities
is required. Most of the costs associated with exporting take the form of marketing expenses.
Exporting commonly requires among four players: coordination
1. Exporter
2. Importer
3. Transport provider
4. Government
Licensing
Licensing essentially permits a company in the target country to use the property of the licensor. Such
property usually is intangible, such as trademarks, patents, and production techniques. The licensee
pays a fee in exchange for the rights to use the intangible property and possibly for technical assistance.
Because little investment on the part of the licensor is required, licensing has the potential to provide a
very large ROI. However, because the licensee produces and markets the product, potential returns
from manufacturing and marketing activities may be lost.
Joint Venture
There are five common objectives in a joint venture: market entry, risk/reward sharing, technology
sharing and joint product development, and conforming to government regulations. Other benefits
include political connections and distribution channel access that may depend on relationships.

5. Such alliances often are favorable when:
1. the partners' strategic goals converge while their competitive goals diverge;
2. the partners' size, market power, and resources are small compared to the industry leaders; and
3. Partners' are able to learn from one another while limiting access to their own proprietary skills.
The key issues to consider in a joint venture are ownership, control, length of agreement, pricing,
technology transfer, local firm capabilities and resources, and government intentions.
Potential problems include:
1. conflict over asymmetric new investments
2. mistrust over proprietary knowledge
3. performance ambiguity - how to split the pie
4. lack of parent firm support
5. cultural clashes
6. if, how, and when to terminate the relationship
Joint ventures have conflicting pressures to cooperate and compete:
1. Strategic imperative: the partners want to maximize the advantage gained for the joint venture,
but they also want to maximize their own competitive position.
2. The joint venture attempts to develop shared resources, but each firm wants to develop and
protect its own proprietary resources.
3. The joint venture is controlled through negotiations and coordination processes, while each firm
would like to have hierarchical control.
Foreign Direct Investment
Foreign direct investment (FDI) is the direct ownership of facilities in the target country. It involves the
transfer of resources including capital, technology, and personnel. Direct foreign investment may be
made through the acquisition of an existing entity or the establishment of a new enterprise.
Direct ownership provides a high degree of control in the operations and the ability to better know the
consumers and competitive environment. However, it requires a high level of resources and a high
degree of commitment.
The Case of EuroDisney
Different modes of entry may be more appropriate under different circumstances, and the mode of
entry is an important factor in the success of the project. Walt Disney Co. faced the challenge of building
a theme park in Europe. Disney's mode of entry in Japan had been licensing. However, the firm chose
direct investment in its European theme park, owning 49% with the remaining 51% held publicly.

6. Besides the mode of entry, another important element in Disney's decision was exactly where in Europe
to locate. There are many factors in the site selection decision, and a company carefully must define and
evaluate the criteria for choosing a location. The problems with the EuroDisney project illustrate that
even if a company has been successful in the past, as Disney had been with its California, Florida, and
Tokyo theme parks, future success is not guaranteed, especially when moving into a different country
and culture. The appropriate adjustments for national differences always should be made.

8. Unit 3
In International marketing, ‘global product planning’ is a term which is used to describe the complete
process of bringing a new product or service to a new market. There two parallel paths involved in the
global product planning process: one involves the idea generation, product design, and detailed
engineering and the other involves market research and marketing analysis. Companies typically see
new product development as the first stage in generating and commercializing new products within the
overall strategic process of product life cycle management, used to maintain or grow the market share.
The following are the categories of new products in terms of their newness to the company and the
global market respectively;
(a) New to the world
New products that create an entirely new market
(b) New product lines
New products that allow a company to enter an established market for the first time
(c) Addition to the existing product lines
New products that supplement a company’s established product lines i.e. package sizes, flavors, etc
(d) Improvements or revisions to existing products
New products that provide improved performance or greater perceived value and replace existing
products
(e) Repositioning
Existing products that are targeted to the new markets
(f) Cost reductions
New products that provide similar performance at lower cost
Product Planning Process
The successful new product planning process consists of 8 major steps;
1. Idea Generation
• Internal sources
• Customers
• Competitors
• Distributors

9. • Suppliers
• Others
2. Idea Screening
To spot good ideas and drop poor ones
• is the product truly useful to consumers and society
• availability of market
• does it mesh well with company’s objectives and strategies
• is it easy to advertise and distribute
• availability of technology
• risk exposure, profitability, cost and benefit
• any other factor
3. Concept Development And Testing
• Product concept is a detailed version of the new product idea stated in meaningful
consumer terms
• Concept development – a new product idea is developed into alternative product
concepts
• Concept Testing – calls for testing new product concepts with groups of target
customers
4. Marketing Strategy Development
• Describe target market
• Planned product positioning
• Planned sales and market share
• Profit goals for the first few years
5. Business Analysis
• A review of the sales, costs and profit projections for a new product to find out whether
these factors satisfy they company’s objectives
• Sales forecast
• Estimation of costs and profits
6. Product Development
• Development of product according to the decided specifications.
7. Test Marketing
• In realistic market setting
8. Commercialization

10. • Launch of product in commercial markets.
Successful new products are the ones;
• They have relative advantage
• Have compatibility with other technology and distribution systems
• Allow trial ability / divisibility for buyers to try and learn
• Can be judged through observation
• Just right in terms of complexity of technology and use
• Offer value for the price.
PRODUCT DESIGNING
Product design is the process of creating a new product to be sold by a business to its customers.[1] It is
the efficient and effective generation and development of ideas through a process that leads to new
products.
In a systematic approach, product designers conceptualize and evaluate ideas, turning them into
tangible products. The product designer's role is to combine art, science, and technology to create new
products that other people can use. Their evolving role has been facilitated by digital tools that now
allow designers to communicate, visualize, and analyze ideas in a way that would have taken greater
manpower in the past.
Product design is sometimes confused with industrial design, and has recently become a broad term
inclusive of service, software, and physical product design. Industrial design is concerned with bringing
artistic form and usability, usually associated with craft design, together to mass produce goods.
Product design process
There are various product design processes and they are all focused on different aspects. The process
shown below is "The Seven Universal Stages of Creative Problem-Solving," outlined by Don Koberg and
Jim Bagnell. It helps designers formulate their product from ideas. This process is usually completed by a
group of people, designers or field experts in the product they are creating, or specialists for a specific
component of the product, such as engineers. The process focuses on figuring out what is required,
brainstorming possible ideas, creating mock prototypes, and then generating the product. However,
that is not the end of the process. At this point, product designers would still need to execute the idea,
making it into an actual product and then evaluate its success by seeing if any improvements are
necessary.
The design process follows a guideline involving three main sections:
1. Analysis
2. Concept
3. Synthesis

11. The latter two sections are often revisited, depending on how often the design needs touch-ups, to
improve or to better fit the criteria. This is a continuous loop, where feedback is the main component.
To break it down even more, the seven stages specify how the process works. Analysis consists of two
stages, concept is only one stage, and synthesis encompasses the other four.
Analysis
Accept Situation: Here, the designers decide on committing to the project and finding a solution to the
problem. They pool their resources into figuring out how to solve the task most efficiently.
Analyze:" In this stage, everyone in the team begins research. They gather general and specific materials
which will help to figure out how their problem might be solved. This can range from statistics,
questionnaires, and articles, among many other sources.
Concept
Define: This is where the key issue of the matter is defined. The conditions of the problem become
objectives, and restraints on the situation become the parameters within which the new design must be
constructed.
Synthesis
Ideate: The designers here brainstorm different ideas, solutions for their design problem. The ideal
brainstorming session does not involve any bias or judgment, but instead builds on original ideas.[4]
Select: By now, the designers have narrowed down their ideas to a select few, which can be guaranteed
successes and from there they can outline their plan to make the product.
Implement: This is where the prototypes are built, the plan outlined in the previous step is realized and
the product starts to become an actual object.
Evaluate: In the last stage, the product is tested, and from there, improvements are made. Although this
is the last stage, it does not mean that the process is over. The finished prototype may not work as well
as hoped so new ideas need to be brainstormed.
Demand-pull innovation and invention-push innovation
Most product designs fall under one of two categories: demand-pull innovation or invention-push
innovation.
Demand-pull happens when there is an opportunity in the market to be explored by the design of a
product. This product design attempts to solve a design problem. The design solution may be the
development of a new product or developing a product that's already on the market, such as developing
an existing invention for another purpose.
Invention-push innovation happens when there is an advancement in intelligence. This can occur
through research or it can occur when the product designer comes up with a new product design idea.

12. STANDARDIZATION VS ADAPTATION
STANDARDIZATION
Standardising a communication policy consists of operating a communication in all the foreign markets
which is identical to the one in the domestic market, with the existing socio-cultural differences.
Furthermore, the company will use the same promotional arguments, the same positioning, the same
advertising messages, the same concepts, the same images, the same slogans, ... The global trademarks
which use this strategy include Coca-Cola, Perrier and Benetton.
When a standardised communication campaign is envisaged, this is generally considered as the media of
television, and to a lesser extent hoardings. However, in the case of hoardings, or a television
advertisement, the text and the script have to be translated into the language of the country.
Communication campaigns are rarely completely standardised. Additionally, countries with the same
language- for example the United States, United Kingdom, South Africa, Australia, ... which all speak
English often differ on a cultural level. It would be risky not to take these differences into account.
Factors favouringstandardising communication
Limited budget. A standardised campaign costs less than an adapted one. For this reason, SMEs
which often have limited budgets, tend to standardise their communication.
The industrial nature of the product. Advertising will be generally easier to standardise for
industrial products than for goods for consumption. In truth, industrial products are more alike :
they tend to be bought and used for the same purpose and reasons in every country, all the
more so as their sophistication and technical complexity increases. The sales claims tend to be
universal.

13. Market harmonisation and uniforming performance. For some products, termed global, the
differences in market consumption will seem to blur, as these products are used in the same
way. All over the world, , but especially in Europe, America and Japan, those sections of the
population which consume these world-wide products share the same needs, sales expectations
and motivations, the same cultural values, sales behaviour and require their products to have
the same qualities. Luxury products, certain clothes, music CDs, the hotel industry and transport
are all examples of universal products.
These sections of the population (jet-set, young people, ... ) are defined on the basis of criteria such as
life style rather than by ethnicity or nationality, have their equivalents in many countries. For example,
in their lifestyle and aspirations, young people in France more resemble other young people, be they
German, Japanese or American rather than their own parents. To use clichés, they all wear the same
clothes, eat hamburgers and drink Coca-Cola, listen to the same music, and surf the internet,...The
emergence of the "World Customer", the harmonisation of lifestyles and values and the dilution of
senses of cultural identity are favoured by a certain number of factors such as :
technical advances, such as cable and satellite television, telematics, computers, telecommunications,
methods of transport ;
allocation of education and communication ;
consequences of travel and technology ;
globalisation of advertising agencies and media which facilitates the transmission of international
campaigns.
Companies which sell international products to consumers of different nationalities, where the
characteristics and expectations are the same or nearly similar, can conduct a single promotional
campaign possibly with minor adaptations (e.g. translations). The essence and advertising message can
be effectively standardised and transmitted to all markets. The slogans highlight the attributes of
common dimensions, or evoke social and human situations sensitive to the consumer in an area with an
identical profile.
Advantages of standardisation
Economies on the scale of design, creation of advertising, and production of advertisements (and
therefore lowering the fees of the agency).
Faster set up time for advertising campaigns and a more rapid penetration of markets due to good
international co-ordination. This characteristic is particularly useful when launching a product
simultaneously in several countries.
Reinforces the image of the product or company as a consequence of the international co-ordination
resulting from an international campaign.

14. Single coherent global image. An identical advertising standpoint in many markets allows the product,
company and brand to possess a uniform image. This limits confusions as the consumer is
internationally mobile and there are possible overlaps in the media (cable television enables consumers
to watch foreign television programmes).
Excellent monitoring of communication.
Lack of opposition between communication agencies, as they are responsible for setting up a single
communication campaign. It is no longer a question of deciding which of them performs best and is the
most creative, since once all the creative work has been produced it is for everything.
Drawbacks of standardisation
Possible loss of advertising effectiveness. Communication, based on the lowest common
denominator of the target markets is rather poor. But standardisation can prove to be
unadaptable if it holds on to local specifications. It can create negative reactions on the part of
the consumers as it does not cater to them, which risks them turning to local competitors. It can
result in losses in important shares of the market, and damage to the image of the product in
the long term.
Little reactivity, no flexibility in the execution.
Lack of motivation for local agencies. As the personnel at the company and the agencies have no
connection with the development of the communication, , they can consider this campaign as
being irrelevant to them. And often they will not be effectively committed to its production and
establishment.
BRANDING AND PACKAGING

19. 1.) Branding
Brand- a name, term, design, symbol, or other feature that identifies one marketer's product as
distinct from those of other marketers
Brand Name- the part of a brand that can be spoken, including letters, words, and numbers
Brand Mark- the part of a brand that is not made up of words, such as a symbol or design
Trademark- a legal designation of exclusive use of a brand
Trade Name- the full legal name of an organization
2.) Brand Loyalty
Brand Loyalty- a customer's favorable attitude toward a specific brand
Brand Recognition- the degree of brand loyalty in which a customer is aware that a brand exists and
views the brand as an alternative purchase if their preferred brand is unavailable
Brand Preference- the degree of brand loyalty in which a customer prefers one brand over competitive
offerings
Brand Insistence- the degree of brand loyalty in which a customer strongly prefers a specific brand and
will accept no substitute
3.) Brand Equity
Brand Equity- the marketing and financial value associated with a brand's strength in a market
4.) Types of Brands
Manufacturer Band- a brand initiated by producers to ensure that producers are identified with their
products at the point of purchase
Private Distributor Brand- a brand initiated and owned by a reseller
Generic Brands- a brand indicating only the product category
5.) Selecting a Brand Name
6.)To examine three types of branding policies
7.)To understand co-branding and brand licensing
Co-branding refers to several different marketing arrangements:
Co-branding, also called brand partnership,[1] is when two companies form an alliance to work
together, creating marketing synergy. As described in Co-Branding: The Science of Alliance:*2+“ "the
term 'co-branding' is relatively new to the business vocabulary and is used to encompass a wide range of
marketing activity involving the use of two (and sometimes more) brands. Thus co-branding could be

20. considered to include sponsorships, where Marlboro lends it name to Ferrari or accountants Ernst and
Young support the Monet exhibition." ”
Co-branding is an arrangement that associates a single product or service with more than one brand
name, or otherwise associates a product with someone other than the principal producer. The typical
co-branding agreement involves two or more companies acting in cooperation to associate any of
various logos, color schemes, or brand identifiers to a specific product that is contractually designated
for this purpose. The object for this is to combine the strength of two brands, in order to increase the
premium consumers are willing to pay, make the product or service more resistant to copying by private
label manufacturers, or to combine the different perceived properties associated with these brands with
a single product.
PACKAGING

27. AFTER SALES SERVICE
Customers are the assets of every business. Sales professionals must try their level best to satisfy
customers for them to come back again to their organization.
What is After Sales Service ?
After sales service refers to various processes which make sure customers are satisfied with the
products and services of the organization.
The needs and demands of the customers must be fulfilled for them to spread a positive word of mouth.
In the current scenario, positive word of mouth plays an important role in promoting brands and
products.
After sales service makes sure products and services meet or surpass the expectations of the customers.
After sales service includes various activities to find out whether the customer is happy with the
products or not? After sales service is a crucial aspect of sales management and must not be ignored.
Why After Sales Service ?
After sales service plays an important role in customer satisfaction and customer retention. It generates
loyal customers.
Customers start believing in the brand and get associated with the organization for a longer duration.
They speak good about the organization and its products.
A satisfied and happy customer brings more individuals and eventually more revenues for the
organization.
After sales service plays a pivotal role in strengthening the bond between the organization and
customers.
After Sales Service Techniques
Sales Professionals need to stay in touch with the customers even after the deal. Never ignore their
calls.
Call them once in a while to exchange pleasantries.
Give them the necessary support. Help them install, maintain or operate a particular product. Sales
professionals selling laptops must ensure windows are configured in the system and customers are able
to use net without any difficulty. Similarly organizations selling mobile sim cards must ensure the
number is activated immediately once the customer submits his necessary documents.
Any product found broken or in a damaged condition must be exchanged immediately by the sales
professional. Don’t harass the customers. Listen to their grievances and make them feel comfortable.

28. Create a section in your organization’s website where the customers can register their complaints. Every
organization should have a toll free number where the customers can call and discuss their queries. The
customer service officers should take a prompt action on the customer’s queries. The problems must be
resolved immediately.
Take feedback of the products and services from the customers. Feedback helps the organization to
know the customers better and incorporate the necessary changes for better customer satisfaction.
Ask the customers to sign Annual Maintenance Contract (AMC) with your organization. AMC is an
agreement signed between the organization and the customer where the organization promises to
provide after sales services to the second party for a certain duration at nominal costs.
The exchange policies must be transparent and in favour of the customer. The customer who comes for
an exchange should be given the same treatment as was given to him when he came for the first time.
Speak to him properly and suggest him the best alternative.

29. Unit 4
PRICING IN INTERNATIONAL MARKETS
Price: A part of the marketing mix:
The price is what the customer pays. It includes direct and indirect costs as well as opportunity costs.
Direct costs are cash outlays a customer makes in order to obtain something. An example would be
admission to a national park. Direct costs are, in many cases, a relatively small part of the total cost.
Indirect costs are costs associated with obtaining something. An example would be the cost of driving to
a national park, food and entertainment along the way, etc. The total of the indirect costs is often more,
sometimes much more, than the direct cost.
The total cost is obtained by adding the direct and indirect costs.
Opportunity costs are what we give up when we do something. They can have various types of value,
sometimes monetary, sometimes not. Opportunity costs include other things you could be doing instead
of going to a national park. Examples might include mowing the lawn or going to a baseball game (which
would be non-monetary) and not working overtime on Saturday in order to go to a national park (which
would be monetary).
The price the park visitor pays to go to a national park is the total of all costs, including direct, indirect,
and opportunity. The perceived benefits of going to a national park have to be at least as great as the
total of the costs if a potential park visitor is going to make a decision to go to a park.
COMPONENTS OF PRICE
The price variable is made up of two components viz costs and profit. The cost component is further
subdivided as fixed and variable.

30. FACTORS INFLUENCING INTERNATIONAL PRICING:
Factors internal to an international firm
1. strategic objectives
· cost leader, differentiation, focus
· gain market share, protect market share, to maintain status quo
· revenue, profit or market share maximization
2. marketing mix policies
· product, place & promotion
3. costs
· short term vs long term cost focus
· full cost, variable cost, marginal cost pricing
4. organizational considerations
· transfer pricing
· cost vs profit center
Factors external to an international firm
1. nature of market (buyer or seller)
2. level of market development/sophistication
3. market demand and consumers' ability to buy
4. competitive situation & consumer surplus
5. product life-cycle-stage
6. type of packaging, environmental issues
7. distribution & marketing costs
8. transportation costs
9. government policies, tariffs, taxes & other restrictions
10. country of origin image
11. after-sales service, warranties & guaranties
12. exchange rate fluctuation
13. environmental factors
14. hidden costs
Factors contributing the selection of final price:
1. Psychological effects of price
2. Influence of other marketing mix elements
3. Company pricing policies
4. Costs
5. Impact of price on other parties
a. distributors or dealers
b. company sales force
c. competitors
Managing price escalation in foreign markets:
1. Rearrange the distribution channel
length of channel / exorbitant margins
2. Eliminate costly features (or make them optional)
no-frills versions - sell core products

31. 3. Downsize the product
smaller version or a lesser count
4. Assemble or manufacture the product in foreign markets
closer proximity to customers - lower costs
5. Adapt the product to escape tariffs and taxes
by shifting it to different tax classification
Pricing in inflationary environments:
1. Modify components, ingredients, parts and/or packaging materials
2. Source materials from low-cost suppliers
3. Shorten credit terms
4. Include escalator clauses in long-term contracts - to hedge against inflation
5. Quote prices in a stable currency
6. Pursue rapid inventory turnovers
7. Draw lessons from other countries
Exporters strategies under varying currency conditions:
When domestic currency is WEAK...
1. Stress price benefits
2. Expand product line and add more costly features
3. Shift sourcing manufacturing to domestic market
4. Exploit export opportunities in all markets
5. Use a full-costing approach, but employ marginal-cost pricing to penetrate new or
competitiveMarkets
6. Speed repatriation of foreign-earned income and collections
7. Minimize expenditures in local or host country currency
8. Buy needed services (advertising, insurance, transportation, etc.) in domestic market
9. Bill foreign customers in their own currency
When domestic currency is STRONG...
1. Engage in non-price competition by improving quality, delivery, and after-sale service
2. Improve productivity and engage in vigorous cost reduction
3. Shift sourcing and manufacturing overseas
4. Give priority to exports to countries with relatively strong currencies
5. Trim profit margins and use marginal-cost pricing
6. Keep the foreign-earned income in host country; slow down collections
7. Maximize expenditures in local or host country currency
8. Buy needed services abroad and pay for them in local currencies
9. Bill foreign customers in the domestic currency

32. THE PROCESS OF PRICE SETTING
The marketing manager uses the parameters suggested by the economists for arriving at a price. These
parameters may be enumerated as under:
1. Costs
2. Demand and supply
3. Economic, legal and political conditions I.
1. Costs
Costs represent the base line for setting the price. In other words, costs represent the price floor beyond
which prices cannot be dropped. As already explained costs are made up of two components, fixed costs
and variable costs. Fixed costs represent the un-escapable element of cost, whereas, the variable cost
represent the escapable costs. The variable costs are also sometimes interpreted as marginal costs or
incremental costs.
2.Demand& Supply
For a marketing manager, the upper limit is demonstrated by the demand and supply conditions as they
exist in the market. The demand conditions are interpreted from the market conditions and the
consumer behaviourwhereas, the supply conditions are interpreted by an analysis of the competition.
The prices charged by the competitors, and the attributes and quantity sold by the competitors, set the
supply parameters. Thus for example, the prices being charged for garments by the Italians and the
South Asians will determine broadly the range that can be charged by the apparel exporters. Again, if
the international buyer is alert he will through his awareness, bargain against the subsidies being
provided by the Government to the exporter, thus forcing the Indian exporter to charge as per real
costs.
3.Economic, Legal and Political conditions
These represent parameters outside the market forces which influence the price structure. The
Government, it has been noted, can through its policy, in fact modify the market conditions, making
them lopsided. Thus, the countries where the economic policies are directed by the Government, the
economic and political conditions have an important bearing on price structures. Taxes and duty
drawbacks represent excellent examples for the same.
The parameters explained above suggest the upper and lower limits but, the actual price lies
somewhere in between. The effort of every manager is to arrive at a process that is easy and minimizes
the deviation from the chosen price, in order to ensure the resultant profit. As a result of this, various
methods of pricing, have come into vogue which emphasise one variable as against the other variable
for example, cost plus pricing, competitive pricing. Cost plus pricing reflects an accounting thought
rather than a managerial thought whereas competitive pricing reflects a supply side thought process.
A suggested process for arriving at the price would include the following steps:
• Analysis of the marketing goals
• Choosing the marketing mix
• Composing the marketing mix
• Determining the pricing policy
• Defining the pricing strategy
• Arriving at a specific price.

33. INTERNATIONAL PRICE QUOTATION AND PAYMENT TERM
QUOTATIONS AND PRO FORMA INVOICES
Many export transactions, particularly initial export transactions, begin with the receipt of an inquiry
from abroad that is followed by a request for a quotation. A pro forma invoice is a quotation prepared in
the format of an invoice; it is the preferred method in the exporting business.
A quotation describes the product, states a price for it, sets the time of shipment, and specifies the
terms of sale and terms of payment. Because the foreign buyer may not be familiar with the product,
the description of the product in an overseas quotation usually must be more detailed than in a
domestic quotation.
The description should include the following 15 points:
1. Seller’s and buyer’s names and addresses
2. Buyer’s reference number and date of inquiry
3. Listing of requested products and a brief description
4. Price of each item (It is advisable to indicate whether items are new or used and to quote the
price in U.S. dollars to reduce foreign exchange risk.)
5. Appropriate total cubic volume and dimensions packed for export (in metric units where
appropriate)
6. Appropriate gross and net shipping weight (in metric units where appropriate)
7. Trade discount (if applicable)
8. Delivery point
9. Terms of sale
10. Terms of payment
11. Insurance and shipping costs
12. Validity period for quotation
13. Total charges to be paid by customer
14. Estimated shipping date from a U.S. port or airport
15. Currency of sale
Pro forma invoices are not used for payment purposes. In addition to the 15 items previously
mentioned, a pro forma invoice should include two statements—one that certifies the pro forma invoice
is true and correct, and another that indicates the country of origin of the goods. The invoice should also
be clearly marked “pro forma invoice.”
Pro forma invoices are models that the buyer uses when applying for an import license, opening a letter
of credit, or arranging for funds. In fact, it is a good practice to include a pro forma invoice with any
international quotation, regardless of whether it has been requested. When final commercial invoices
are being prepared before shipment, it is advisable to check with your local Export Assistance Center for
any special invoicing provisions that may be required by the importing country.

34. If a specific price is agreed on or guaranteed by your company, the precise period during which the offer
remains valid should be specified.
INTERNATIONAL TERMS OF PAYMENT
Method Usual Time of
Payment
Goods
Available To
Buyer
Risk
to Seller
Risk to Buyer Comments
CASH IN
ADVANCE
Before
shipment
After payment None Complete.
Relies on seller
to ship exactly
the goods
expected, as
quoted and
ordered
Seller's goods
must be
special in one
way or
another, or
special
circumstances
prevail over
normal trade
practices (e.g.,
goods
manufactured
to buyer-only
specification).
LETTER OF
CREDIT (L/C)
(See next two
items.)
Commerical
Invoice must
match the L/C
exactly. Dates
must be
carefully
headed.
"Stale"
documents are
unacceptable
for collection.
Letters of
Credit require
total accuracy
in conforming
to terms,
conditions, and
documentaion.
Consult your
United
Shipping
Associate
member for
determining
feasibility of
terms and
conditions.
CONFIRED
IRREVOCABLE
CREDIT
After shipment
is made,
documents
presented to
the bank.
After payment Gives the seller
a double
assurance of
payments.
Depends on
the terms of
the letter of
credit.
Assures
shipment is
made but
relies on
exporter to
ship goods as
described in
documents.
Terms may be
negotiated
The inclusion
of a second
assurance of
payment
(usually a U.S.
Bank) prevents
surprises, and
adds assurance
that issuing
bank has been

35. prior to L/C
agreement,
alleviating
buyer's degree
of risk.
deemed
acceptable by
confirming
bank. Adds
cost and an
additional
requirement to
seller.
UNCONFIRMED
IRREVOCABLE
CREDIT
Same as above Same as above Seller has
single bank
assurance of
payment and
seller remains
dependent on
foreign bank.
Seller should
contact his
banker to
determine
whether the
issuing bank
has sufficient
assests to
cover the
amount.
Same as above Credit can be
changed only
by mutual
agreement, as
stipulated in a
sales
agreement.
Becomes open
account with
buyer's bank as
collection
agent. Foreign
bank may have
problems
making
payment in
sum or
timeliness.
DRAFTS
(See next two
items.)
Remittance
time from
buyer's bank
to seller's bank
may still take
one week to
one month.
Drafts, by
design, should
contain terms
and conditions
mutually
agreed upon.
A draft may be
written with
virtually any
term or
condition
agreeable to
both parties.
When
determining
draft tenor
(terms and
conditions),
consult with
your banker
and freight
forwarder to
determine the
most desirable
means of doing
business in a
given country.
SIGHT DRAFT On After payment If draft not Assures A draft can be

36. (with
documents
against
acceptance)
presentation
of draft to
buyer.
to buyer's
bank.
honored,
goods must be
returned or
resold.
Storage,
handling, and
return freight
expenses may
be incurred.
shipment but
not content,
unless
inspection or
check-in is
allowed before
payment.
a collection
instrument
used to
exchange
possession and
title to goods
for payment.
Seller is
essentially
drawing a
check against
the bank
account of the
buyer. Buyer's
bank must
have pre-
approval, or
seek approval
of the buyer
prior to
honoring the
check. Payble
upon
presentation
of documents.
TIME DRAFTS
(with
documents
against
acceptance)
On maturity of
the draft
Before
payment, after
acceptance
Relies on buyer
to honor draft
upon
presentation.
Assures
shipment but
not content.
Time of
maturity
allows for
adjustments, if
agreed to by
seller.
Payable based
upon the
acceptance of
an obligation
to pay the
seller at a
specified time.
Although a
time draft has
more
collection
leverage than
an invoice, it
remains only a
promissory
note, with
conditions.
OPEN
ACCOUNT
As agreed,
usually by
invoice
Before
payment
Relies
completely on
buyer to pay
account as
agreed
None All terms of
payment,
including extra
charges and
terms should
be mutually

37. understood
and agreed
upon prior to
open account
initiation.
Companies
conducting
ongoing
business are
candidates for
open account
terms of
payment.
Seller must
measure not
only buyer's
credit
reliability but
the country's
as well.
Terms Ranked from LEAST RISK to MOST RISK for the Seller

38. Unit 5
INTERNATIONAL PROMOTION METHOD
Promotion is another 'P' of the marketing mix - promotion is about communicating, informing and
developing an image (of the company or a product) with both current customers and potential
customers.
Businesses promote themselves and products for a number of reasons:
1. increase and maintain demand for their product(s)
2. increase and maintain the market share of their product(s)
3. 'make noise' and raise awareness for their product(s)
4. create or enhance a brand image
Promotion methods
There are two advertising techniques businesses may use: Below the line (BTL) and Above the line (ATL).
The technique and method a business decides to use to promote its product depends on a number of
factors:
1. the type of product
2. their budget
3. the product's stage in the product life cycle
4. the target audience (who the business wants to reach)
5. legal issues (whether a business is allowed to promote their product in a certain way, e.g.
tobacco and drugs)
Below the line (BTL) promotion
Below the line promotion includes promotion methods which are more personal, traditional and allow
the company control. They can include:
PR - public relations - when a business communicates directly with it's public through press releases and
speaking at conferences
Sales promotions - such as 50% extra free, buy one get one free or coupons and gifts
Sponsorship - where a business will pay to be associated with another product, person or event.
Sportspersons are often sponsored by sports companies.
Direct sales - when a representative of the business will visit potential customers

39. Above the line (ABL) promotion
Below the line promotion includes promotion methods using "mass media", for example TV and the
internet. Such techniques are usually seen as impersonal, designed to reach as many people at as little
cost as possible. They can include:
TV, Radio and Cinema - allows businesses to target a large group of people
Newspapers - allow advertisers to reach specific groups of people
The web - allows businesses to reach a large international audience at a very low cost.
Outdoor/transport - advertisements on the side of busses, outside shops and on billboards enable
DIRECT MAIL-- Mail sent directly from you to your customers can be highly customized to suit their
nature and needs. You may want to build a mailing list of your current and desired customers. Collect
addresses from customers by noticing addresses on their checks, asking them to fill out information
cards, etc. Keep the list online and up-to-date. Mailing lists can quickly become out-of-date. Notice
mailings that get returned to you. This should be used carefully and it can incur substantial cost, you
don't want to inundate your stakeholders with information so make the most of your message.
ADVERTISING- Advertising or advertising [1][2][3] is a form of communication for marketing and used
to encourage or persuade an audience (viewers, readers or listeners; sometimes a specific group) to
continue or take some new action. Most commonly, the desired result is to drive consumer behavior
with respect to a commercial offering, although political and ideological advertising is also common.
PERSONAL SELLING- Personal selling is where businesses use people (the “sales force”) to sell
the product after meeting face-to-face with the customer.
The sellers promote the product through their attitude, appearance and specialist product
knowledge. They aim to inform and encourage the customer to buy, or at least trial the
product.
A good example of personal selling is found in department stores on the perfume and cosmetic
counters.
A customer can get advice on how to apply the product and can try different products.
Products with relatively high prices, or with complex features, are often sold using personal
selling. Great examples include cars, office equipment (e.g. photocopiers) and many products
that are sold by businesses to other industrial customers.

40. The main advantages and disadvantages of personal selling can be summarised as follows:
Advantages Disadvantages
High customer attention
Message is customized
Interactivity
Persuasive impact
Potential for development of
relationship
Adaptable
Opportunity to close the sale
High cost
Labor intensive
Expensive
Can only reach a limited number of
customers
TRADE FAIR- A trade fair (trade show, trade exhibition or expo) is an exhibition organized so
that companies in a specific industry can showcase and demonstrate their latest products,
service, study activities of rivals and examine recent market trends and opportunities. In
contrast to consumer fairs, only some trade fairs are open to the public, while others can only
be attended by company representatives (members of the trade, e.g. professionals) and
members of the press, therefore trade shows are classified as either "Public" or "Trade Only". A
few fairs are hybrids of the two; one example is the Frankfurt Book Fair, which is trade-only for
its first three days and open to the general public on its final two days. They are held on a
continuing basis in virtually all markets and normally attract companies from around the globe.
For example, in the U.S. there are currently over 2500[citation needed] trade shows held every
year, and several online directories have been established to help organizers, attendees, and
marketers identify appropriate events.

41. Unit 6
DISTRIBUTION CHANNEL
DISTRIBUTION CHANNEL AND LOGISTICS DECISION
A distribution channel can have several stages depending on how many organisations are involved in it:

42. Looking at the diagram above:
Channel 1 contains two stages between producer and consumer - a wholesaler and a retailer. A
wholesaler typically buys and stores large quantities of several producers’ goods and then breaks into
bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order
quantities, the use of wholesalers makes economic sense.
Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. The consumer
electrical goods market in the UK is typical of this arrangement whereby producers such as Sony,
Panasonic, Canon etc. sell their goods directly to large retailers such as Comet, Tesco and Amazon which
then sell onto the final consumers.
Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the
manufacturer sells directly to customers. An example of a direct marketing channel would be a factory
outlet store. Many holiday companies also market direct to consumers, bypassing a traditional retail
intermediary - the travel agent.
What is the best distribution channel for a product?
What factors should be taken into account in choosing the best distribution channel? Here is a
summary:
Nature of the product
1. Technical/complex? Complex products are often sold by specialist distributors or agents
2. Customized? A direct distribution approach often works best for a product that the end
consumer wants providing to a distinct specification
3. Type of product – e.g. convenience, shopping, specialty
4. Desired image for the product – if intermediaries are to be used, then it is essential that those
chosen are suitable and relevant for the product.
The market
1. Is it geographically spread?
2. Does it involve selling overseas (see further below)
3. The extent and nature of the competition – which distribution channels and intermediaries do
competitors use?
The business
1. Its size and scope – e.g. can it afford an in-house sales force?
2. Its marketing objectives – revenue or profit maximization?
3. Does it have established distribution network or does it need to extend its distribution option
4. How much control does it want over distribution? The longer the channel, the less control is
available

43. Legal issues
1. Are there limitations on sale?
2. What are the risks if an intermediary sells the product to an inappropriate customer?
SELECTION AND APPOINTMENT OF FOREIGN SALES AGENT
Selling a product through an overseas agent is a very successful strategy. Sales agents are available on
commission basis for any sales they make. The key benefit of using an overseas sales agent is that you
get the advantage of their extensive knowledge of the target market. Sales agent also provides support
to an exporter in the matter of transportation, reservation of accommodation, appointment with the
government as and when required. It is, therefore, essential that one should very carefully select
overseas agent.
Merits of Appointing a Sales Agent
There are various types of merits associated with appointed a sales agent for export purpose are as
follow:
1. Sales agent avoids the recruitment, training, time and payroll costs of using own employees to
enter an overseas market.
2. An agent is a better option to identify and exploit opportunities in overseas export market.
3. An agent already have solid relationships with potential buyers, hence it saves the time of the
exporter to build own contacts.
4. An agent allows an exporter to maintain more control over matters such as final price and brand
image - compared with the other intermediary option of using a distributor.
Demerits of Appointing a Sales Agent
There are also certain disadvantages associated with appointing a sales agent for export purpose which
are as follows:
1. After-sales service can be difficult when selling through an intermediary.
2. There is a risk for exporter to lose some control over marketing and brand image.
Important Points While Appointing a Sales Agent:
Appointing right sales agent not only enhance the profit of an exporter but also avoid any of risks
associated with a sales agent. So it becomes important for an exporter to take into consideration
following important points before selection an appropriate sales agent for his product.
1. Size of the agent's company.
2. Date of foundation of the agent's company.
3. Company's ownership and control.
4. Company's capital, funds, available and liabilities.
5. Name, age and experience of the company's senior executives.

44. 6. Number, age and experience of the company's salesman.
7. Oher agencies that the company holds, including those of competing products and turn-over of
each.
8. Length of company's association with other principal.
9. New agencies that the company obtained or lost during the past year.
10. Company's total annual sales and the trends in its sales in recent years.
11. Company's sales coverage, overall and by area.
12. Number of sales calls per month and per salesman by company staff.
13. Any major obstacles expected in the company's sales growth.
14. Agent's capability to provide sales promotion and advertising services
15. Agent's transport facilities and warehousing capacity.
16. Agent's rate of commission; payment terms required.
17. References on the agents from banks, trade associations and major buyers
18. Some source of Information on Agents is:
19. Government Departments Trade Associations.
20. Chambers of Commerce.
21. Banks.
22. Independent Consultants.
23. Export Promotion Councils.
24. Advertisement Abroad.
Agent v Distributor
There is a fundamental legal difference between agents and distributors and an exporter should not
confuse between the two. An agent negotiates on the behalf of an exporter and may be entitled to
create a legal relationship between exporter and the importer
A distributor buys goods on its own account from exporter and resells those products to customers. It is
the distributor which has the sale contract with the customer not the exporter. In the case of distributor,
an exporter is free from any kinds of risks associated with the finance.

45. Unit 7
EXIM POLICY
Exim Policy, also known as the Foreign Trade Policy is announced every 5 years by Ministry of Commerce
and Industry, Government of India. It is updated every year on the 31st of March and all the
amendments and improvements in the scheme are effective from the 1st of April. Exim policy deals in
general provisions pertaining to exports and imports, promotional measures, duty exemption schemes,
export promotion schemes, special economic zone programs and other details for different sectors. The
Government announces a supplement to this policy each year. The Government of India also releases
the Hand Book of Procedures detailing the procedures to be followed for each of the schemes
mentioned in the Exim Policy.
TRENDS IN INDIA’S FOREIGN TRADE
Trade Performance
Exports crossed the landmark figure of US $ 100 billion to reach US $ 103 billion during 2005-06. During
the current year 2006-07 exports are expected to reach the target of US $ 125 billion if the present rate
of growth of exports is maintained during the last quarter of the year. The sustained growth of
merchandise exports at more than 20 per cent during the last few years is more than twice the growth
of Gross Domestic Product (GDP). If this trend continues the export target of US $ 150 billion set in the
Foreign Trade Policy for 2009 is likely to be achieved quite comfortably as can be.
The growth performance of exports has been an outcome of a conscious and concerted effort on the
part of the Government to bring down transaction costs and facilitate trade. The vision and the roadmap
provided by the Foreign Trade Policy (2004-09) for a five year period with clearly enunciated objectives,
strategies and policy initiatives has been instrumental in putting exports on a higher growth trajectory.

46. The export target during 2004-05 at around US $ 75 billion was sought to be doubled to US $ 150 billion
by the terminal year of the Foreign Trade Policy, i.e. 2008-09. For the first time in the history of planning
doubling of exports in less than five years is being seen as an achievable target. What is even more
significant is that exports have been conceived of as an engine for generating additional economic
activity for employment generation with special focus on rural and semi-urban areas.
Exports are projected to touch the target of US $ 125 billion by the end of the current financial year
2006-07 if the present rate of growth is maintained during the last quarter of the year.The export
growth in India is partly on account of a favourable international environment resulting from a sustained
world GDP growth at around 5 per cent since 2003. This has led to booming trade volumes and rising
commodity prices in the world market. However, this alone does not entirely explain the 250
unprecedented growth performance. Exports from India also responded to numerous reform measures
and policy initiatives. The Government made a conscious and concerted effort to reduce trade barriers,
bring down transaction costs and facilitate trade. For the first time in the history of planning doubling of
export activity within five years was set as a concrete target of the Foreign Trade Policy of the
Government. During the first nine months of the current financial year ( April - December 2006-07)
exports stood at US $ 89 billion while imports were valued at US $ 131 billion. Trade deficit was
estimated at US $ 42 billion. The aggregate foreign trade data in US Dollar and Rupee terms for the
period April- December 2005-06 and April- December 2006-07 are given below in Table 2.1.
Exports by Principal Commodities
According to disaggregated data of exports by Principal Commodities available for the period April -
October 2006-07, the export growth was mainly driven by petroleum products, engineering
Table 2.1 India's Foreign Trade
(Rscrore) Year Exports GrowthRate Imports GrowthRate TradeDeficit
2002-03 255137 22.1 297206 21.2 -42069
2003-04 293367 15.0 359108 20.8 -65741
2004-05 375340 27.9 501065 39.5 -125725
2005-06 456418 21.6 660408 31.8 -203990
2005-06(Apr-Dec) 324572.34 464866.02 -140293.68
2006-07(P)(Apr-Dec) 408394.10 25.83 598286.68 28.70 -189892.58
Year Exports GrowthRate Imports GrowthRate TradeDeficit
2002-03 52719 20.3 61412 19.4 -8693
2003-04 63843 21.1 78150 27.3 -14307

47. 2004-05 83536 30.8 111517 42.7 -27981
2005-06 103090 23.4 149166 33.8 -46076
2005-06(Apr-Dec) 73362.28 105118.68 -31756.40
2006-07(P)(Apr-Dec) 89489.08 21.98 131212.46 24.82 -41723.88
(P) Provisional Data
Note: 2005-06 Figures are revised figures as per the Monthly Statistics of the Foreign Trade of India for
March, 2006
Source: DGCI&S, Kolkata.
goods and agriculture and allied products. The growth performance of exports by Principal Commodities
can be seen at Table 2.2 and Graph 2.1 below:
Plantation Crops
Export of plantation crops grew by 26.74 per cent in rupee terms compared with the corresponding
period of the previous year. Export of coffee registered a growth of 33.86 per cent from Rs. 893.06 crore
to Rs. 1,195.44 crore and export of tea registered a growth of 20.53 per cent from Rs. 1,023.72 crore to
Rs. 1233.91 crore.
Agriculture and Allied Products
Agriculture and Allied Products include Cereals, Pulses, Tobacco, Spices, Nuts and Seeds, Oil Meals,
Guargum Meals, Castor Oil, Shellac, Sugar & Molasses, Processed Food, Meat & Meat Products, etc.
During April-October, 2006, exports of commodities under this group registered an average growth of
25.29 per cent with the value of exports rising from Rs. 16,547.74 crore in the previous year to Rs.
20,733.06 crore during the current year.
Ores and Minerals
Exports of Ores and Minerals were estimated at Rs. 15,415,05crore during April-October, 2006
registering a growth of 13.20 per cent over the same period of the previous year. All sub groups viz.
Processed Minerals, other Ores and Minerals, and Coal have recorded positive growth of 34.91 per cent,
47.76 per cent and 35.22 per cent respectively except Iron ore.
Leather and Leather Manufactures
Export of Leather and Leather Manufactures recorded during April-October, 2006 a growth of 9.06 per
cent. The value of export increased to Rs. 7,451.72 crore from Rs. 6,832.80 crore during the same period
of the previous year. Exports of Leather Manufactures and Leather Footwear registered a growth of 3.43
per cent and 18.40 per cent respectively.

48. Gems and Jewellery
The export of Gems and Jewellery during April-October, 2006 increased to Rs. 41,877.01 crore from Rs.
1,834.12 crore during the corresponding period of last year showing a growth of 0.1 per cent.
Chemicals and related Products
The value of exports of Chemicals and Allied Products increased to Rs. 44,621.64 crore from Rs.
36,907.79 crore during the same period of the previous year registering a growth rate of 20.90 per cent.
Basic Chemicals, Pharmaceuticals & Cosmetics, Rubber, Glass & Other Products and Residual Chemicals
and Allied Products and Plastic & Linoleum registered positive growth.
Engineering Goods
Exports of items under this group consist of Machinery, Iron & Steel, and Other Engineering items.
Export from this sector during the period April-October, 2006 stood at Rs. 66,267.62 crore compared
with Rs. 45,912.18 crore during the same period of the previous year, registering an overall growth of
44.34 per cent.
Electronic goods & Computer Software in physical form
Exports of Electronic Goods were estimated at Rs. 7,138.46 crore compared with Rs. 5,285.41 crore
during the corresponding period of last year, registering a growth of 35.06 per cent. Computer Software
in Physical form has shown a negative growth of 62.72 per cent
Textiles and Handicrafts
The value of Textiles exports was estimated at Rs. 41,373.98 crore compared with Rs. 37,543.63 crore in
the corresponding period of the previous year, recording a growth of 10.20 per cent. The export of
Readymade Garments, Cotton, Yarn, Fabrics, Made Ups, etc., Manmade Textiles & Made Ups and Coir &
Coir Mfrs recorded a growth of 8.08 per cent, 12.69 per cent, 18.81 per cent and 7.74 per cent
respectively. Export items of Handicrafts include Metal Artware, Textiles (hand printed), Woodwares
and Zari goods. Exports of Handicrafts declined to Rs. 874.37 crore from Rs. 1,265.81 crore during the

49. corresponding period of the previous year registering a negative growth of 30.92 per cent. Export of
carpets increased to Rs. 2,331.38 crore from Rs. 2,046.39 crore during the same period last year
registering a growth of 13.93 per cent.
Project Goods
The export of Project Goods recorded a decline of Rs. 169.87 crore from Rs. 335.90 crore during the
period April-October, 2006 registering a negative growth of 49.43 per cent..
Petroleum Products
Export of Petroleum Products increased by Rs.51,856crores during the current year 2006-07 (April-
October) compared with Rs.26,811 crores during the same period last year recording a growth of 93.4
per cent. As aa result of this the share of Petroleum Products in total exports increased to almost 16 per
cent.
Cotton Raw including Waste
There was a very significant growth of Cotton Raw including Waste from Rs.664 crores during April-
October 2005-06 to Rs.1,681crores during 2006-07 April-Oct. The rate of growth of exports of this item
at 153.4 per cent was the highest recorded by any group of Principal Commodities during the current
year.
Trends in India's Imports
The trends in India's imports for the year2006-07 (April-October), compared with the corresponding
period of 2005-06 are shown in Table-III. Oil Imports recorded a higher growth than non-oil imports
whereas there was a decline in import of Pearls, Precious and Semi-Precious Stones
Imports by Principal Commodities
According to disaggregated data of imports by Principal Commodities available for the period April -
October 2006-07, the import growth was mainly driven by Petroleum Crude. Imports of items under
bulk category comprising inter-alia Fertilizers, Wheat, News Print, Non-Ferrous Metals, Metalliferrous
Ores and Products recorded a substantial increase. The growth of import of Machinery and Project
Goods was also significant. The growth performance of imports by Principal Commodities can be seen at
Table 2.3 and Graph 2.2 below:
Fertilizers
During April - October, 2006-07, import of Fertilizers increased to Rs.8698.47 crore from Rs. 5,321.24
crore recording a growth of 63.47 per cent.

50. Petroleum Crude & Products
The import of Petroleum Crude & Products stood at Rs. 161,049.52 crore during April- October, 2006-07
against Rs. 106,874.99 crore during the same period of the previous year showing a growth of 50.69 per
cent.
Pearls, Precious and Semi-Precious Stones
Import of Pearls and Precious and Semi-precious Stones during April- October, 2006-07 decreased to Rs.
19,509.57 crore from Rs. 27,152.29 crore during the corresponding period of the previous year
registering a negative growth of 28.15 per cent.
Capital Goods
Import of capital goods, largely comprising Machinery, including Transport Equipment and Project
Goods recorded a notable increase during April- October, 2006-07 over the same period of last year.
Import of Machine Tools, Project Goods, Non-Electrical Machinery, Electrical Machinery and Transport
Equipment registered a growth of 47.15 per cent, 127.20 per cent, 45.24 per cent, 43.89 per cent, and
56.01 per cent respectively.
Chemicals and Chemical Materials
During April- October, 2006-07, import of Organic and Inorganic Chemicals increased to Rs. 20,840.13
crore from Rs. 18.051.71 crore during the same period of last year, registering a growth of 15.45 per
cent. Import of Medicinal and Pharmaceutical Products also increased toRs. 3,037.09 crore from
Rs.2,471.30 crore during the corresponding period of last year registering a growth of 22.89 per cent.
Direction of India's Foreign Trade
The value of India's exports and imports from major regions/ countries are given in Table IV & V
respectively and Graph 2.3 and 2.4.
During the first 7 months of the current year, the share of Asia and ASEAN region comprising South
Asian, East Asian, Mid-eastern and Gulf countries accounted for nearly 49.87 per cent of India's total

51. exports. The share of Europe and America in India's export stood at 22.28 per cent and 19.83 per cent
respectively of which EU (25) comprises 20.74 per cent. During the period, USA continued to remain the
most important country of export destination (15.47 per cent) followed by United Arab Emirates (10.06
per cent),
Singapore (5.45 per cent), China (5.66 per cent), Hong Kong (3.71 per cent), UK (4.46 per cent) and
Germany (3.15 per cent).
Asia and ASEAN accounted for 61.56 per cent of India's total import during the period followed by
Europe (19.91 per cent) and America (9.4 per cent). Among individual countries the share of China stood
highest at (9.1 per cent) followed by USA (5.7 per cent), and Germany (3.99 per cent).
During the same period, Africa accounted for the highest growth in India's export at 73.26 per cent
followed by Asia & ASEAN (35.66 per cent), Europe (21.94 per cent) and America (21.95 per cent). On
the other hand, India's imports from the Asia and ASEAN region was 130.96 per cent higher than the
imports in the corresponding period of the previous year.
Import of Sensitive Items during 2006 - 07 (April- December)
The total import of sensitive items for the period April-December 2006 has been Rs 14472 crore as
compared to Rs 12959 crore during the corresponding period last year thereby showing an increase of
11.7 per cent. The gross import of all commodity during same period of current year was Rs 598287
crore as compared to Rs 464866 crore during the same period of last year. Thus import of sensitive
items constitute 2.8 per cent and 2.4 per cent of the gross imports during last year and current year
respectively.
Imports of fruits & vegetables (including nuts), cotton & silk, spices and tea & coffee have shown a
decline at broad group level during the period. Imports of items viz. edible oil, food grains, products of
SSI, rubber, marble & Granite, Alcoholic beverages and milk & milk products have shown increase during
the period under reference.
In the edible oil segment, the imports has increased from Rs 6753 crores last year to Rs 7558 crores for
the corresponding period of this year. A significant feature of edible oil import is that import of crude oil

52. has gone up by 20.5 per cent and that of refined oil have gone down by 44.9 per cent. The growth in
edible oil import is mainly due to significant increase in import of Crude Palm Oil and its fractions which
has gone up by 44 per cent.
Imports of sensitive items from Indonesia, Argentina, Australia, United States of America, China People's
Republic, Malaysia, Russia, Sri Lanka DSR, Thailand, Cote D' Ivory, Germany etc. have gone up while
those from Brazil, Guinea Bissau, Egypt A RP, Japan, Benin etc. have shown a decrease.
A table showing imports of sensitive items during April-December 2006 Vs April-December 2005 is given
in Table-2.6. Graph-2.5 & Graph-2.6 depict the comparative percentage share of import of sensitive
items during April-December 2005 and April-December 2006 respectively.
STEPS IN STARTING AN EXPORT BUSINESS
Starting an Export Business can seem like an overwhelming task, but it doesn't have to be! The first step
in starting an Export Business is to find a Manufacturer. Your manufacturer is the linchpin in your
business process. If your manufacturer can’t deliver the quality or quantity you need, then you can’t
deliver on your commitments to your customers.

53. So how do you find a quality Manufacturer for your export products? The following are 5 steps to help
you find, qualify, and solidify a relationship with a great manufacturer for your export business.
Time Required: Varies
Here's How:
Make a List of Possible Manufacturers
Don’t reinvent the wheel - find lists of potential manufacturers on the internet, in trade magazines,
through import-export organizations, and even at your local library. Start with the Thomas Register of
American Manufacturers, GlobalSources, GlobalSpec, or Alibaba.
Another source of information is trade associations (easily found through trade magazines or online).
There are associations for nearly every kind product, from toys and foods to cosmetics and construction.
Contact the association and ask for a list of recommended or specialized manufacturers.
Do Your Research
Once you’ve identified a list of possible manufacturers for your specific export product, do your
homework on each of them. Do they:
1. Impress you in their marketing?
2. Have great packaging?
3. Enjoy a good reputation with clients and within the industry?
4. Provide enough info to potential customers?
5. Offer quality, convenience, and competitive pricing?
6. Feel right (i.e., do you have good chemistry about them from the info you have available)?
Your product and business is going to be represented by the product and packaging of your
manufacturer - you want them to be as impressive as you are.
Determine If Manufacturer is a Good Fit
Can the manufacturer keep up with demand of your product? One good way to find out is by checking
the shelves of the manufacturer’s retail customers. If the retail customer doesn’t have the
manufacturer’s products on their shelves, it may mean the manufacturer can’t keep up with demand.
You definitely don’t want to tell your customers you can’t sell them anything because your
manufacturer is three weeks behind. Another indicator is whether the manufacturer advertises or not
because they certainly won’t advertise if they are at max capacity.
Make First Contact
If you’ve qualified the manufacturer and are ready to begin the relationship, start with a simple request
for information.

54. If the company takes forever to get back with you, or just sends you a brochure with no kind of follow-
up, take the hint - they’re not worried about attracting new customers or they simply have no customer
service.
If a sales rep contacts you to talk about your product and your interest in their company, and readily
answers all of your questions and concerns, it’s probably a good indicator of how the overall company
treats its customers.
Introduce Your Company
At this point you need to act a sales rep for your own company. Meet the manufacturer and get them
excited about your company. Lay the groundwork for a great collaborative partnership. Tell them about
your market, your product, your customers, and the future of your business. Make sure you cover how
you’ll finance your orders and terms. Your success translates into their success so you want to get them
excited about you. Having a solid relationship with your manufacturer can pay dividends down the road,
like preferential treatment in the production schedule or flexible payment terms.
PRODUCT SELECTION
A key factor in any export business is clear understanding and detail knowledge of products to be
exported. The selected product must be in demand in the countries where it is to be exported. Before
making any selection, one should also consider the various government policies associated with the
export of a particular product.
Whether companies are exporting first time or have been in export trade for a long time - it is better for
both the groups to be methodical and systematic in identifying a right product. It’s not sufficient to have
all necessary data 'in your mind' - but equally important to put everything on paper and in a structured
manner. Once this job is done, it becomes easier to find the gaps in the collected information and take
necessary corrective actions.
There are products that sell more often than other product in international market. It is not very
difficult to find them from various market research tools. However, such products will invariably have
more sellers and consequently more competition and fewer margins. On the other hand - a niche
product may have less competition and higher margin - but there will be far less buyers.
Fact of the matter is - all products sell, though in varying degrees and there are positive as well as flip
sides in whatever decision you take - popular or niche product.
Key Factors in Product Selection
1. The product should be manufactured or sourced with consistent standard quality, comparable
to your competitors. ISO or equivalent certification helps in selling the product in the
international market.

55. 2. If possible, avoid products which are monopoly of one or few suppliers. If you are the
manufacturer - make sure sufficient capacity is available in-house or you have the wherewithal
to outsource it at short notice. Timely supply is a key success factor in export business
3. The price of the exported product should not fluctuate very often - threatening profitability to
the export business.
4. Strictly check the government policies related to the export of a particular product. Though
there are very few restrictions in export - it is better to check regulatory status of your selected
product.
5. Carefully study the various government incentive schemes and tax exemption like duty
drawback and DEPB.
6. Import regulation in overseas markets, specially tariff and non-tariff barriers. Though a major
non-tariff barrier (textile quota) has been abolished - there are still other tariff and non-tariff
barriers. If your product attracts higher duty in target country - demand obviously falls.
7. Registration/Special provision for your products in importing country. This is specially applicable
for processed food and beverages, drugs and chemicals.
8. Seasonal vagaries of selected products as some products sell in summer, while others in winter.
Festive season is also important factor, for example certain products are more sellable only
during Christmas.
9. Keep in mind special packaging and labeling requirements of perishable products like processed
food and dairy products.
10. Special measures are required for transportation of certain products, which may be bulky or
fragile or hazardous or perishable.
MARKET SELECTION
After evaluation of company’s key capabilities, strengths and weaknesses, the next step is to start
evaluating opportunities in promising export markets. It involves the screening of large lists of countries
in order to arrive at a short list of four to five. The shorting method should be done on the basis of
various political, economic and cultural factors that will potentially affect export operations in chosen
market.
Some factors to consider include:
1. Geographical Factors
a. Country, state, region,
b. Time zones,
c. Urban/rural location logistical considerations e.g. freight and distribution channels
2. Economic, Political, and Legal Environmental Factors
a. Regulations including quarantine,
b. Labelling standards,
c. Standards and consumer protection rules,
d. Duties and taxes
3. Demographic Factors

56. a. Age and gender,
b. Income and family structure,
c. Occupation,
d. Cultural beliefs,
e. Major competitors,
f. Similar products,
g. Key brands.
4. Market Characteristics
a. Market size,
b. Availability of domestic manufacturers,
c. Agents, distributors and suppliers.
Foreign Market Research
Understanding a market’s key characteristics requires gathering a broad range of primary and secondary
research, much of which you can source without cost from the internet.
Primary research, such as population figures, product compliance standards, statistics and other facts
can be obtained without any cost from international organizations like United Nations (UN) and World
Trade Organizations (WTO). Analysis of export statistics over a period of several years helps an individual
to determine whether the market for a particular product is growing or shrinking.
Secondary research, such as periodicals, studies, market reports and surveys, can be found through
government websites, international organizations, and commercial market intelligence firms.
Foreign Market Selection Process
Step 1: Gather Information on a Broad Range of Markets
1. Market selection process requires a broad range of information’s depending upon the products
or services to be exported, which includes:
2. The demand for product/service.
3. The size of the potential audience.
4. Whether the target audience can affords product.
5. What the regulatory issues are that impact on exports of product.
6. Ease of access to this market – proximity/freight.
7. Are there appropriate distribution channels for product/service.
8. The environment for doing business – language, culture, politics etc.
9. Is it financially viable to export to selected market.
You can gather much of the first step information yourself from a variety of sources at little or no cost.
Sources of information include:
1. Talking to colleagues and other exporters.
2. Trade and Enterprise – web site, publications, call centre.

57. 3. The library.
4. The Internet.
Step 2: Research a Selection of Markets In-Depth
From the results of the first stage, narrow your selection down to three to five markets and undertake
some in-depth research relating specifically to your product. While doing so, some of the questions that
may arise at this stage are:
What similar products are in the marketplace (including products that may not be similar but are used to
achieve the same goal, e.g. the product in our sample matrix at the end of this document is a hair
removal cream. As well as undertaking competitor research on other hair removal creams, we would
also need to consider other products that are used for hair removal, i.e. razors, electrolysis, wax).
1. What is your point of difference? What makes your product unique? What are the key selling
points for your product?
2. How do people obtain/use these products?
3. Who provides them?
4. Are they imported? If so from which countries?
5. Is there a local manufacturer or provider?
6. Who would your major competitors be? What are the key brands or trade names?
7. What is the market’s structure and shape?
8. What is the market’s size?
9. Are there any niche markets, and if so how big are they?
10. Who are the major importers/ stockists / distributors / agencies or suppliers?
11. What are the other ways to obtain sales/representation?
12. What are the prices or fees in different parts of the market?
13. What are the mark-ups at different distribution levels?
14. What are the import regulations, duties or taxes, including compliance and professional
registrations if these apply?
15. How will you promote your product or service if there is a lot of competition?
16. Are there any significant trade fairs, professional gathers or other events where you can
promote your product or service?
17. Packaging – do you need to change metric measures to imperial, do you need to list ingredients?
18. Will you need to translate promotional material and packaging?
19. Is your branding – colours, imagery etc., culturally acceptable?
EXPORT PRICING
Pricing and costing are two different things and an exporter should not confuse between the two. Price
is what an exporter offer to a customer on particular products while cost is what an exporter pay for
manufacturing the same product.

58. Export pricing is the most important factor in for promoting export and facing international trade
competition. It is important for the exporter to keep the prices down keeping in mind all export benefits
and expenses. However, there is no fixed formula for successful export pricing and is differ from
exporter to exporter depending upon whether the exporter is a merchant exporter or a manufacturer
exporter or exporting through a canalising agency.
Determining Export Pricing
1. Export Pricing can be determine by the following factors:
2. Range of products offered.
3. Prompt deliveries and continuity in supply.
4. After-sales service in products like machine tools, consumer durables.
5. Product differentiation and brand image.
6. Frequency of purchase.
7. Presumed relationship between quality and price.
8. Specialty value goods and gift items.
9. Credit offered.
10. Preference or prejudice for products originating from a particular source.
11. Aggressive marketing and sales promotion.
12. Prompt acceptance and settlement of claims.
13. Unique value goods and gift items.
Export Costing
Export Costing is basically Cost Accountant's job. It consists of fixed cost and variable cost comprising
various elements. It is advisable to prepare an export costing sheet for every export product.
As regards quoting the prices to the overseas buyer, the same are quoted in the following
internationally accepted terms which are commonly known as Incoterm.
EXPORT DOCUMENTATION
An exporter without any commercial contract is completely exposed of foreign exchange risks that arises
due to the probability of an adverse change in exchange rates. Therefore, it becomes important for the
exporter to gain some knowledge about the foreign exchange rates, quoting of exchange rates and
various factors determining the exchange rates. In this section, we have discussed various topics related
to foreign exchange rates in detail.
Export from India required special document depending upon the type of product and destination to be
exported. Export Documents not only gives detail about the product and its destination port but are also
used for the purpose of taxation and quality control inspection certification.

59. Shipping Bill / Bill of Export
Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing
shipment. A shipping bill is issued by the shipping agent and represents some kind of certificate for all
parties, included ship's owner, seller, buyer and some other parties. For each one represents a kind of
certificate document.
Documents Required for Post Parcel Customs Clearance
In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned below:
Customs Declaration Form - It is prescribed by the Universal Postal Union (UPU) and international apex
body coordinating activities of national postal administration. It is known by the code number CP2/ CP3
and to be prepared in quadruplicate, signed by the sender.
Despatch Note- It is filled by the exporter to specify the action to be taken by the postal department at
the destination in case the address is non-traceable or the parcel is refused to be accepted.
Commercial Invoice - Issued by the exporter for the full realisable amount of goods as per trade term.
Consular Invoice - Mainly needed for the countries like Kenya, Uganda, Tanzania, Mauritius, New
Zealand, Burma, Iraq, Ausatralia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. It is prepared in the
prescribed format and is signed/ certified by the counsel of the importing country located in the country
of export.
Customs Invoice - Mainly needed for the countries like USA, Canada, etc. It is prepared on a special form
being presented by the Customs authorities of the importing country. It facilitates entry of goods in the
importing country at preferential tariff rate.
Legalised / Visaed Invoice - This shows the seller's genuineness before the appropriate consulate or
chamber or commerce/ embassy.
Certified Invoice - It is required when the exporter needs to certify on the invoice that the goods are of a
particular origin or manufactured/ packed at a particular place and in accordance with specific contract.
Sight Draft and Usance Draft are available for this. Sight Draft is required when the exporter expects
immediate payment and Usance Draft is required for credit delivery.
Packing List - It shows the details of goods contained in each parcel / shipment.
Certificate of Inspection – It is a type of document describing the condition of goods and confirming that
they have been inspected.
Black List Certificate - It is required for countries which have strained political relation. It certifies that
the ship or the aircraft carrying the goods has not touched those country(s).
Manufacturer's Certificate - It is required in addition to the Certificate of Origin for few countries to
show that the goods shipped have actually been manufactured and is available.

60. Certificate of Chemical Analysis - It is required to ensure the quality and grade of certain items such as
metallic ores, pigments, etc.
Certificate of Shipment - It signifies that a certain lot of goods have been shipped.
Health/ Veterinary/ Sanitary Certification - Required for export of foodstuffs, marine products, hides,
livestock etc.
Certificate of Conditioning - It is issued by the competent office to certify compliance of humidity factor,
dry weight, etc.
Antiquity Measurement – It is issued by Archaeological Survey of India in case of antiques.
Shipping Order - Issued by the Shipping (Conference) Line which intimates the exporter about the
reservation of space of shipment of cargo through the specific vessel from a specified port and on a
specified date.
Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the port gate and includes the
shipper's name, cart/ lorry No., marks on packages, quantity, etc.
Shut Out Advice - It is a statement of packages which are shut out by a ship and is prepared by the
concerned shed and is sent to the exporter.
Short Shipment Form - It is an application to the customs authorities at port which advises short
shipment of goods and rnequired for claiming the return.
EXPORT PROCEDURE
1. Registration
2. Processing of Shipping Bill
3. Quota Allocation
4. Arrival of Goods at Docks
5. System Appraisal of Shipping Bills
6. Customs Examination of Export Cargo
7. Stuffing / Loading of Goods in Containers
8. Drawal of Samples
9. Amendments
10. Export of Goods under Claim for Drawback
Generation of Shipping Bills
In India custom clearance is a complex and time taking procedure that every export face in his export
business. Physical control is still the basis of custom clearance in India where each consignment is
manually examined in order to impose various types of export duties. High import tariffs and multiplicity
of exemptions and export promotion schemes also contribute in complicating the documentation and
procedures. So, a proper knowledge of the custom rules and regulation becomes important for the

61. exporter. For clearance of export goods, the exporter or export agent has to undertake the following
formalities:
Registration
Any exporter who wants to export his good need to obtain PAN based Business Identification Number
(BIN) from the Directorate General of Foreign Trade prior to filing of shipping bill for clearance of export
goods. The exporters must also register themselves to the authorized foreign exchange dealer code and
open a current account in the designated bank for credit of any drawback incentive.
Registration in the case of export under export promotion schemes:
All the exporters intending to export under the export promotion scheme need to get their licences /
DEEC book etc.
Processing of Shipping Bill - Non-EDI:
In case of Non-EDI, the shipping bills or bills of export are required to be filled in the format as
prescribed in the Shipping Bill and Bill of Export (Form) regulations, 1991. An exporter need to apply
different forms of shipping bill/ bill of export for export of duty free goods, export of dutiable goods and
export under drawback etc.
Processing of Shipping Bill - EDI:
Under EDI System, declarations in prescribed format are to be filed through the Service Centers of
Customs. A checklist is generated for verification of data by the exporter/CHA. After verification, the
data is submitted to the System by the Service Center operator and the System generates a Shipping Bill
Number, which is endorsed on the printed checklist and returned to the exporter/CHA. For export items
which are subject to export cess, the TR-6 challans for cess is printed and given by the Service Center to
the exporter/CHA immediately after submission of shipping bill. The cess can be paid on the strength of
the challan at the designated bank. No copy of shipping bill is made available to exporter/CHA at this
stage.
Quota Allocation
The quota allocation label is required to be pasted on the export invoice. The allocation number of AEPC
(Apparel Export Promotion Council) is to be entered in the system at the time of shipping bill entry. The
quota certification of export invoice needs to be submitted to Customs along-with other original
documents at the time of examination of the export cargo. For determining the validity date of the
quota, the relevant date needs to be the date on which the full consignment is presented to the
Customs for examination and duly recorded in the Computer System.
Arrival of Goods at Docks:
On the basis of examination and inspection goods are allowed enter into the Dock. At this stage the port
authorities check the quantity of the goods with the documents.

62. System Appraisal of Shipping Bills:
In most of the cases, a Shipping Bill is processed by the system on the basis of declarations made by the
exporters without any human intervention. Sometimes the Shipping Bill is also processed on screen by
the Customs Officer.
Customs Examination of Export Cargo:
Customs Officer may verify the quantity of the goods actually received and enter into the system and
thereafter mark the Electronic Shipping Bill and also hand over all original documents to the Dock
Appraiser of the Dock who many assign a Customs Officer for the examination and intimate the officers’
name and the packages to be examined, if any, on the check list and return it to the exporter or his
agent.
The Customs Officer may inspect/examine the shipment along with the Dock Appraiser. The Customs
Officer enters the examination report in the system. He then marks the Electronic Bill along with all
original documents and check list to the Dock Appraiser. If the Dock Appraiser is satisfied that the
particulars entered in the system conform to the description given in the original documents and as
seen in the physical examination, he may proceed to allow "let export" for the shipment and inform the
exporter or his agent.
Stuffing / Loading of Goods in Containers
The exporter or export agent hand over the exporter’s copy of the shipping bill signed by the Appraiser
“Let Export" to the steamer agent. The agent then approaches the proper officer for allowing the
shipment. The Customs Preventive Officer supervising the loading of container and general cargo in to
the vessel may give "Shipped on Board" approval on the exporter’s copy of the shipping bill.
Drawal of Samples:
Where the Appraiser Dock (export) orders for samples to be drawn and tested, the Customs Officer may
proceed to draw two samples from the consignment and enter the particulars thereof along with details
of the testing agency in the ICES/E system. There is no separate register for recording dates of samples
drawn. Three copies of the test memo are prepared by the Customs Officer and are signed by the
Customs Officer and Appraising Officer on behalf of Customs and the exporter or his agent. The disposal
of the three copies of the test memo is as follows:-
Original – to be sent along with the sample to the test agency.
Duplicate – Customs copy to be retained with the 2nd sample.
Triplicate – Exporter’s copy.
The Assistant Commissioner/Deputy Commissioner if he considers necessary, may also order for sample
to be drawn for purpose other than testing such as visual inspection and verification of description,
market value inquiry, etc.

63. Amendments:
Any correction/amendments in the check list generated after filing of declaration can be made at the
service center, if the documents have not yet been submitted in the system and the shipping bill
number has not been generated. In situations, where corrections are required to be made after the
generation of the shipping bill number or after the goods have been brought into the Export Dock,
amendments is carried out in the following manners.
The goods have not yet been allowed "let export" amendments may be permitted by the Assistant
Commissioner (Exports).
Where the "Let Export" order has already been given, amendments may be permitted only by the
Additional/Joint Commissioner, Custom House, in charge of export section.
In both the cases, after the permission for amendments has been granted, the Assistant Commissioner /
Deputy Commissioner (Export) may approve the amendments on the system on behalf of the Additional
/Joint Commissioner. Where the print out of the Shipping Bill has already been generated, the exporter
may first surrender all copies of the shipping bill to the Dock Appraiser for cancellation before
amendment is approved on the system.
Export of Goods under Claim for Drawback:
After actual export of the goods, the Drawback claim is processed through EDI system by the officers of
Drawback Branch on first come first served basis without feeling any separate form.
Generation of Shipping Bills:
The Shipping Bill is generated by the system in two copies- one as Custom copy and one as exporter
copy. Both the copies are then signed by the Custom officer and the Custom House Agent.