Author: digitalexim

The letter of credit is a document that guarantees the buyer will make payments to the sellers. It is issued by a bank and ensures that the buyer will make payments on time and in full. If the buyer is unable to make such a payment, the bank covers the full amount or the remaining amount on behalf of the buyer. You can know about LC from import and export business training. Learn the importance of Letter of Credit with export import training.   A letter of credit minimizes risk in international trade transactions where the buyer and seller do not know each other. It is issued against a pledge of security or cash. Banks usually collect a fee, which is typically a percentage of the Letter of Credit amount. Import export training in India provides the best international knowledge to start a business.  

Features of Letter of Credit-  

• The bank charges different fees depending on the type of Letter of Credit. 
• International Chambers of Commerce guidelines are issued for any Letter of Credit. 
• If the bank finds a fault in the buyer’s name, or the product name, the payment will be denied. 

• This process involves only the exchange of documents, not the supply of goods or services.  
• Details in the letter must be accurate, including the name of the seller, date, amount, product name and quantity, etc. 

Types of Letter of Credit- 

1 Sight Credit- Using a sight letter of credit, an entrepreneur can present a bill of exchange to the lender and take the funds immediately. A sight letter of credit is considered to be the fastest letter of credit because the funds can be accessed instantly upon presentation of a bill of exchange.  2 Time Credit- A bill of exchange that is paid after an agreed time period between a lender and borrower is called a time credit. This type of credit involves a time limit. Letter of Credit defining time credit gives the borrower few days to pay back the amount, only once the lender receives the repayment check.  3 Revocable Credit- Letters of credit with revocable terms may be amended or cancelled by the issuing bank. It is not necessary for the issuing bank to inform beneficiaries regarding any changes to the letter of credit.  

4 Irrevocable Credit-

 Irrevocable Credits are LCs in which the terms and conditions cannot be amended or revoked by the issuing bank; instead, the bank must follow the directions or commitments specified in the letter of credit.   

5 Confirmed Credit- 

Confirmed LCs are those where a bank other than the issuing bank adds its own confirmation to the credit. The beneficiary’s bank will submit the documents to the confirming banker when the LC is confirmed.  

Conclusion-  

Generally, a letter of credit supports a beneficiary or seller in exchange agreements, where the bank ensures that the buyer or the issuing bank pays the seller the agreed upon amount. In the case of a transferable letter of credit, the seller can choose another party to make the payment. Know how you can deal with such kind of terms with import and export training courses.   To know more about international trade live free webinar with Digital Exim by our expert Kavit Ashwin Shah. Click the link to attend our webinar.   https://chat.whatsapp.com/Bqz4SWH55nSGtKj3GnJAC8 Do Visit our Website!  

Export incentives are benefits exporters receive from the government as an appreciation for bringing foreign currencies. These are regulatory, monetary, or tax programs to encourage & motivate export business and to compensate for the cost they face during export. Export import business training assists you with every detail of international business. Export plays an important part in a country’s economy and growth.    

How Indian export incentive scene works

Export incentives make overseas trade beneficial. The Indian government collects less tax on products that are exported, so that its price gets cheaper and it reaches globally. These incentives ensure higher reach of Indian products globally and growth of export business. Incentives are changed according to scarcity, availability, and depending on the product. Like if there is more production of a product, the government will provide more incentive on that particular product for export instead of wasting.

 Who Implemented Export Incentives?

 In our country export intensives and foreign trade policy are implemented by the Directorate General of Foreign trade (DGFT) under the ministry of Commerce and Industry. It also deals with ‘’refund issues arising out of export’’ and recommends changes in customs related policies.

Types of Indian Export Incentives- 

There are three types of Indian Export Incentives and these three are further divided into categories-

1 Export from India Scheme-

   It is further subdivided into two parts Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS).

• Under the MEIS scheme, exporters to notified goods to notified markets is rewarded on realised FoB (Free on Board) value of the export in free foreign exchange rates of 2% to 7%. 
• Under the SEIS scheme, eligible exporters receive in the form of duty credit scrips at a rate of 3% to 7% on the net foreign exchange earned. To claim SEIS, exporters must have an IEC and minimum net foreign exchange of $15.000.

2 Duty Exemption/ Remission Schemes-

It is also further divided into five categories-

• Advance Authorisation (AA)- It allows import input in the country without having to pay duty payment, if it belongs for producing export items. This includes oil, fuel, and catalysts. It has a validity of 12 months for import and final product must be exported within 18 months
• Advance Authorisation for Annual Requirement- Under this, exporters can apply for advance authorization on an annual requirement basis. However, this is entitled for only One to Five Star Export Houses.
• Duty-Free Import Authorisation (DFIA)- Under this scheme, aims to refund to exporters on the custom and excise duty paid on raw materials and inputs used in the production of export products.
• Duty Drawback- Under this, the custom and excise duty paid inputs against the exported product is refunded to the exporters. Refunds are credited to the exporter’s bank account within two months of the shipment date.
• Rebate of State and Central Levies and taxes (RoSCTL)- In this, exporters get benefits on made-up articles and garments in the form of duty credit scrips. The maximum rebate rate is 6.05% for apparels and 8.2% for made ups.   

3 Export Promotion Capital Goods Scheme

This is also divided into two parts

• Zero Duty EPCG Scheme- Import of capital goods are allowed at the pre-production, production, and post-production stages at zero custom duty.
• EOU/EHTP/STP/BTP Schemes- Under Export Oriented unit (EOU), Electronics Hardware Technology Park (EHTP), Software Technology Part (STP) and Bio-Technology Park (BTP) scheme, company to export their inventory may set up. 

Importance of Indian Trade Incentives-

• It helps the exporter to deal with high export prices.
• Government provides provisions for covering bad loans.
• Financial grants let you expand your exports.
• It involves duty free import of inputs for export production.
• Low-cost loans.
• Helps in bringing foreign currencies which helps in economic development.
• Encourage more exports and to grow more.

This shows benefits given by the Indian government are so important, encouraging and beneficial for the exports. One gets motivated to work in the export business. Join the export import business course for more details. Give us a visit to know about the export import Industry or Call +91-9898724798.

The Export Oriented Units Scheme was introduced in the year 1980, 31st December. The Root Purpose of this Scheme was to boost Exports from India so that foreign Earning and Employment Opportunities Can be increased. At the time of launching this scheme, due to some major benefits, exporters showed Willingness to set up units with long run commitments.

Business opportunities are like buses: there’s always another one coming. 

– Richard Branson

Basically, the Export Oriented Units Scheme encouraged the Exporters in many ways which is quite a good thing for the whole Country.

Benefits Export Oriented Units:

1) Through EOUs Traders tend to enjoy the speedy clearance Facility.

2) They Can Claim Reimbursement on Paid GST, that’s super good. 

3) One can also claim Input Tax Credit on the Goods & Services  

4) The Best thing is they can claim refund from paid duty on purchase of fuel which are being purchased from domestic oil companies.

5) Either Through Import or domestic sources, EOUs have a permit to procure capital goods or raw materials without paying any duty for purchase. 

The Project should have a minimum investment of Rs.1 crore in Plant & Machinery. But it does apply for biotechnology parks, software technology parks and electronic hardware technology parks. So be Careful here! 

Conclusion: Schemes like this really helps exporters in terms of encouragement. This also put a good impact on the nation’s economy through various reasons such as growth in exports and employment opportunities. This is what contributes to a successful Nation. We must believe that here, a well-established Export Import Training is highly required. Nothing to think about much, digital Exim is India’s best consultancy course in India. Join us today! Call on 9505506333 to kick start your export import journey with us. 

To earn is no big deal, but to earn constantly and progressively is! Export Import Trade is one such project. Anyone can start Exporting but to run the business with reaching higher goals is the real deal. 

There are many Export Import Consultancies out there that teaches the basics of the trade. But who will let you know of the complicated details of the Exim Industry! 

To start an Exporting trade and to export goods is actually a no big move. The big deal is to make sure the product you have selected is such that it sells handsomely in international markets.

If you are fretting over how to Select a Product that not only is a good export product but also sells well in international markets! 

Worry not, for your Hero is here! Okay, that was dramatic. There are many strategies to select a perfect product. And once you have the perfect product you strategize marketing.

Well, how to find that one product or a few goods that can make you a millionaire? Here a potential answer to the volatile question.

• Petroleum products:

  India first discovered the potential in Oil and Gas industry back in 1889. Ever since India had focused on depending less on Imports of Petroleum and increasing petroleum export.

Here are a few petroleum products that are exported in maximum quantities from India:

• Fuel Oil.
• High Sulphur Gas oil.
• Naphtha.
• Packed Bitumen.
• Food grade Hexane.
• Lube oil base stock.

India ranks 4th in exporting refined petroleum and Indian petroleum products are valued all over the world.

The investment required to extract petroleum and export it is higher but so are the returns!

India’s number 1 competitor is Saudi Arabia, exporting 16.1% of global petroleum need.

• Agriculture products:

India is an economy that is dependent majorly on its agricultural production. India realized the potential of Agri export and introduced the concept of Agri Export Zone (AEZ) in 2001. 

This concept was introduced to take a comprehensive look at the produce and product of a particular area. Then to further develop and source the raw materials, their processing and packaging and finally their export.

Indian government understands the importance of being a nation dependent on the Agri economy and constantly makes efforts to increase the produce and export.

India makes export deals of the Agri products to countries like Australia, France, Italy, Singapore, China, Canada, Germany, Sweden, etc.

Major export products are:

• Ginger
• Okra
• Potatoes
• Cabbages
• Tomatoes
• Bananas
• Mangoes
• Guava

These are a few nations and a few agriculture products that India exports. India ranks 10th in the world in exporting agriculture products. India aims to double its production by 2050. If the production is doubled, the exports are bound to increase!

• Pharmaceutical products:

India exports its trusted drugs to many countries of the world. When the whole world was suffering in a grave pandemic, India exported its Medicines for relief.

The total export of Drugs and Pharmaceutical products during April 2020 accounted for 15.87 billion. For the month of November 2020, was US$ 1.99 billion. India excelled even in times of crisis.

India is the world’s largest provider of generic drugs. Drugs made in India have good export value. 

The top countries India exports its valued Pharma products are the USA, Russia, UK, South Africa, Nigeria.

Here’s a list of pharma products that made their way to the top exporting products:

• Medicines
• Face masks
• Gloves
• Incubators
• Air ionizers

These are the products that are still in high demand in both local and international markets. India waived off Customs Duty on imports of the life-saving drug Remdesivir.

The Indian government is making continuous efforts to ease of lives of exporters and importers. Indian exporter will reach new heights with the government aiding exports and imports. 

• Handicraft products:

Indian handicraft is famous since Vedic times, all around the world. The Indian culture supports handicraft and almost every state has its own variety and speciality.

The majority of Indian Handicraft is sold locally. There are many local sellers who are in contact with the craftsmen, they buy the item and sell it at reasonable rates.

So finding a local craftsman is an easy job. You can ask the craftsman to customize the design accordingly to your international customers and get the job done.

Indian handicraft export accounted for more than 126 Billion USD in the year 2020. These numbers are still lesser than the export made in 2019. 

Here’s a list of handicraft items that yield great returns:

• Art metal wares
• Wood ware
• Handmade textiles
• Imitation jewellery

These are the best selling Indian handicraft in the international markets. Indian handicraft is a very profitable business. The beginning or set up of a handicraft business may be difficult and time-consuming but the returns are great.

Indian handicraft is sold at very high prices in international markets and is adorned all over. The European countries have always been importers of Indian handicraft. The USA has recently shown keen interest in Indian handicraft.

Hence India had found ways and means to expand the handicraft export business since ancient times.

• Dairy products:

Since India is Agri based economy, the dairy industry in India has also flourished. India exported dairy products of 51 k MT accounted for 1.34 Cr INR, in the year 2020.

Since the White Revolution in India, dairy has seen better days than most. In the year 2016, the Indian government Merchandise Exports from India Scheme (MEIS) under which the administration had informed merchandise for sends out, which additionally included milk and milk items.

The Indian government saw potential in dairy export and encouraged exporters to consider dairy products as potential product. 

India exports a majority of dairy products to countries like UAE, Bhutan, Turkey, Egypt, the USA etc.

Here’s a list of Indian dairy products that find their way to the international markets:

• Fresh butter
• Buttermilk
• Fresh cheese
• Milk and cream in powder
• Skimmed milk powder
• Whole milk

These are the products best exported in the whole world. Dairy in India is locally also making huge progress. Many local milk vendors are finding support in Indian huge support in the union of the dairy industry.

India is on the progressive road to rank number 1 in terms of exporting many goods. Indian Exports are in demand worldwide, also because of the pandemic. The giants of the world decided to implement the ‘China plus One’ policy which greatly benefitted Indian Exports.

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Exporting masks is one of the most profitable trades in today’s times. 

Need of the hour, Masks! During the Pandemic the one business that kept going, if not pushing ahead, was Export Import Business.  

Handmade masks, in India, took the nation by storm. Every household began manufacturing, may it be large scale or small scale, handmade masks. Homemade masks in all shapes and sizes and colors were made available by a lot of households.

Such small businesses grew and spread like Pandemic. People of India started to understand the importance and need for masks all around the world. 

Indians found an opportunity and started exporting masks, firstly to the neighboring countries. Slowly but surely Indian handmade masks export grew to Western countries and    India is having a huge surplus reserve of Masks but since the government has banned the export of surgical masks, additional masks are being stored. Many Indian manufacturers are stopping completely or slowing down the production of masks in the nation.   Many handmade mask manufacturers will be able to avail the benefits of not only selling their products in the local markets but also exporting the same to international market places.   https://www.youtube.com/watch?v=HKiTu5eBhUU  

Here’s a list of Documents required to Export handmade masks from India to the world.

• Commercial Invoice (Bill)
• Packing list
• Bill of Lading
• Marine Insurance Bill
• Certificate of Origin
• Brochure
• Phytosanitary Certificate

You can check out our YouTube channel.   https://www.youtube.com/c/DigitalExim/videos   We regularly make Product Analysis and Country Analysis videos and post ‘em on our channel. You can check ‘em out and leave your comments.   Also, you can also share the video and subscribe to our YouTube channel.   We also provide Export Import Advanced Training Course, in Ahmedabad and you are welcome to join us. You can also visit our page to get more information about Export Import Business.

A successful export import trade requires knowledge in many aspects, and getting the export goods or raw materials at the lowest possible price and making the most out of that are the most important ones. Know how you can identify the right supplier with import export courses in Ahmedabad.   Finding five suppliers across the country of the product is optimal. Here’s why. It is always advisable to select and compare different suppliers. That way one can learn about varying rates of products or raw materials, facilities and transportation.  This will also provide you with a backup resource if a supplier backs off at the last minute. This backup resource will enable you to continue to operate your business normally.  

Before finalizing a local supplier, there are a few things you should consider- 

Exhibitions and trade fairs-

To find local and genuine suppliers, exporters must attend exhibitions and trade fairs. Here you can find a variety of suppliers, and you get a choice of which product to buy. 

Visiting Direct Factory-

Once you have selected the product and have finalized the supplier, we recommend you to visit the direct factory of the supplier. You will gain a better understanding of how big the factory / godown is, and how many goods it produces. Is it a systemic work culture, or is not. 

Personal Visit-

In order to build trust with your supplier, you need to visit him personally. You can meet him in a coffee shop or a restaurant, but the best place will be a factory. Build a relationship with your supplier and only then will he or she support you.   

Visit Direct Market-

A direct market can be one of the best sources of suppliers. For instance, if you want to export cloths, visit a market specifically dedicated to cloths, or whatever it is that you want to export. There you will find producers and suppliers. 

Friends and Family-

Finding a supplier begins with a strong network. Contact your family and friends and build a strong relationship. They can help you find a supplier. Maybe they know someone who supplies the product, or maybe they have friends who know someone who does.  

Google Finding-

One of the simplest ways to find a buyer is by using Google. Simply search for the name of the supplier and call every one of them for a clear conversation. 

Association Directory-

For different products, there are associations. If you wish to do business in the agriculture industry, the agriculture association provides the list of suppliers and members. Likewise, each product has a specific association that provides a directory.  

 To select your final supplier, you should consider different factors after you have shortlisted a few suppliers: 

Ask for Product Sample-

In order to ensure that you are working with a quality supplier, you should request a sample of their product before you make any purchases from them. The most important reason is to ensure that you review the quality of their products. 

Agreement-

Getting an international supplier’s agreement in writing is now necessary as language barriers are often a problem. Make sure to have everything in writing.   There are certain product-specific agreements between overseas suppliers and importers, such as pricing, payment terms, shipping terms, and delivery.  

Delivery Capacity-

There is no point in selecting a supplier who may not be able to meet your volume needs due to capacity constraints or conflicts with other projects. A simple ratio of current output to capacity can be an excellent indicator. 

 Conclusion- 

You should research the supplier’s history. This may help you to determine if the claims made by the supplier are true, or if they are just a facade! You should also learn how well the supplier handles difficult clients.  For more information join our export import business training and start your business in just 60 days.  You can also join our live free webinar and learn import export online. Click the link below to attend webinar  https://chat.whatsapp.com/Bqz4SWH55nSGtKj3GnJAC8 Do give us a visit! 

Export and import are very important for any nation. Export and import both make a complete international trade. Import export courses online has taken the responsibility to international trade easy for new entrepreneurs. Join import export training in India and know what are the factors that affect the export import business.   Here we are with another export import blog to know deeply what factors can affect export and import. As we all know that a country’s economy is influenced by export and import, it is important to know how they get affected.   Here we have mentioned some factors that affect export import, let’s have a look. 

Marketing-

Marketing plays an important role in export and import of any product and company. A good marketing strategy attracts customers all over the world and is the reason to a successful business.  

Currency Exchange Rate-

Exchange rates determine the value of each country’s currency in terms of other currencies, enabling countries to exchange their currencies for international transactions. If a country’s exchange rate falls, its export prices will drop and its import prices will increase.  

Trade Restrictions-

By relaxing trade restrictions abroad, companies will be able to sell their products abroad more easily. An import restrictions policy aims to limit the importation of goods or services from foreign countries. The purpose of trade restrictions is usually to protect domestic companies and workers from foreign competition. 

Inflation Rate-

The country’s households and firms will likely buy a significant amount of imported goods if the inflation rate is high and exports may the country is also likely to have some problems while exporting. As inflation decreases, the country would become more competitive internationally and exports would increase while imports would fall. 

Quality of Product-

Quality of your product is what matters a lot while export or import of any product. A fall in quality will make your business fall. Standard quality management allows firms to continuously learn and improve their standards, and helps them increase internal efficiency.  

Demand-

You must be aware of that the product you are exporting or importing should have demand in that particular place. No demand or less demand of your product can lead to loss of your business.  

Government Policies-

Depending on the government policies such as subsidizing exporters, regulating imports, or not enforcing laws against piracy, the companies can have an impact on its trade. 

Conclusion-  

The above-mentioned points are the factors that influence or affect export import. Have a calculative view on each point to know whether your business will be in profit or loss. Do you know that as long as a nation’s exports exceed its imports, it has a trade surplus; if imports exceed exports, it has a trade deficit.  It takes a lot of time and efforts to know how you can run an export and business without any mistake. Learn import export online with Digital Exim and get all your problem solved with the guidance of our experts.   Join our live webinar and learn A to Z of international trade totally free. To join our webinar, click the link given below  https://chat.whatsapp.com/Bqz4SWH55nSGtKj3GnJAC8Do check our website for more! 

The emergence of social media channels has become increasingly important in the international trade arena over the last few years. Social media marketing is the most popular and is recommended by almost all import export training in India on a regular basis.  Social media have taken the lead of all the recent marketing mediums. On social channels, customers and businesses can create a two-way dialogue through communication, sharing of contents and creating bonds.  Old marketing methods limited messages to a limited number of people and conversation was one-way only in the import export business.  To help you create a social media marketing plan, we’ve provided below some: 

Tips for promoting your export business on social media: 

1 Making the Right Platform Choice- 

It is quite crucial for your marketing success to share your content on the right platform. There are numerous social media platforms on which you can post your content with just a few clicks. The numbers are only growing.  Make sure you create business accounts on all the platforms your target customers use, so they can contact you. Conduct a thorough analysis to determine which sites are most popular, and with a well-suggested strategy, conquer those sites as well.   

2 Setting up a Calendar- 

You can organize your social media posts much more efficiently with a content calendar by including hashtags, appropriate links, images, and other such creative elements.  By creating a content calendar, you avoid such errors. You also give yourself room to form goals and develop strategies, and you can proactively track your progress against them. 

3 Adding Videos-  

It has been proved that visual content on social channels works really well. Video content is great for grabbing attention and also communicating your business personalities to your customers. While scrolling through their social feeds, people notice the most visually appealing content.  Videos let you express more than you can in a normal post, and they are very easy to share without taking up much space. Design an engaging, narrative-driven video to get the most responses. 

4 Increasing Engagement- 

In order to be successful on social media, your posts should be social and interactive. Provide content that your audience needs to read about export and import procedures, and enable them to ask questions.  You can learn more about what your target audience needs by conducting research.   

5 Establishing a community- 

You should focus on attracting customers who are genuinely interested, loyal, and engaged rather than trying to attract too many followers.  Engaging people in activities that promote your brand will help you build a community for your brand. 

5 Providing value to our customers 

Posting content that works in your favour on social media channels is the most amazing thing you can do for your customers. For example, sharing tips or secrets for posting texts or videos, or perhaps doing something that makes them curious about reading the whole thing.  

Conclusion-  

Social media channels contain these features that help draw the attention of potential customers and compel them to follow you.  To plan and understand social media campaign for your export business, connect with import and export business training and start your trade with us in just 60 days.   Interested people can also join our live webinar. Click the link below to attend webinar.   https://chat.whatsapp.com/Bqz4SWH55nSGtKj3GnJAC8 Do give us a visit to start your international business!