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PROJECT REPORT

ON

―EXPORT PROCEDURE IN INTERNATIONAL MARKET‖ OF

SUBMITTED BY- SUBMITTED TO-

MOHD SHARIQ Ms. DEEPIKA DHAL

MBA-II SEM LECTURER

10903091 [LIM]

RT1902 A-25

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DECLARATION

I Mohd Shariq hereby declare that the summer project report titled ―EXPORT PROCEDURE

IN INTERNATIONAL MARKET” written and submitted to LOVELY PROFESSIONAL

UNIVERSITY by me is my own and its equal copy has not been reproduced to any other

institution/university or published anywhere else.

I understand that such reproducing is liable for punishment in any way the university deem

fit.

Place: Moradabad Mohd Shariq

Date: Regd. No.-10903091

MBA

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COMPANY GUIDE CERTIFICATE

This is to certify that the summer project titled “Export procedure in international market”

at ―AKBAR CORPORATION LIMITED ―is an original work of Md. Shariq , student of

Lovely Institute of Management, Phagwara and is being submitted for partial fulfillment of

the award of the Master of Business Administration (MBA) degree of Lovely Professional

University, Phagwara. The final compilation of the report was also done under my guidance

and it has not been submitted earlier to anywhere else.

Place: Moradabad Mohd Shariq

Date:3AUG-2010 Regd. No. - 10903090

MBA

MR- S.K.MAHESHWARI (EXPORT-MANAGER) OF ACL

Name & Signature of the guide

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CERTIFICATE OF THE INSTITUTE GUIDE

This is to certify that the project titled ―‖export procedure in international market‖ is an original work

of Mr.Mohd Shariq bearing University Registration Number 10903091 a student of Lovely

Institute of Management, Phagwara and is being submitted in partial fulfilment of the requirements

for the award of the degree of Master of Business Administration of Lovely Professional University,

Phagwara. The summer project report has not been submitted earlier to this University or to any other

University / Institution for the fulfilment of the requirement of a course of study.

.

Date: 23 AUG-2010 Ms.DEEPIKA DHAL

Name and signature of the guide

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Acknowledgement

The journey of success is not completed without proper support and guidance —it is often

said. I realized it even better during my summer internship program. I may not have come

this far without help, guidance and support of certain people who acted as guides, along the

way.

I express my deepest and most sincere thanks to my Project Guide “Mr. S.K. Maheswari‖

Recruitment and Export Manager of Akbar Corporation Limited Moradabad. After

interacting with him, I learnt few tricks of professional management and I am sure the

knowledge imbibed here will go a long way in enriching my career. I express my thanks to

my Faculty Guide Ms.DEEPIKA DHAL. The project could not be completed without his

able support and guidance.

I take this opportunity to thank all senior executives and every associate of ACL without their

cooperation I would not have been able to complete this project.

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PREFACE

Master of business Administration is a course, which combines both theory and its

applications as its contents of study in the field of management. As part and parcel of this

course, every aspirant has to undergo an ‗in – company training‘ in an organization. The

purpose of this training is to expose the student of management sciences with real life

situations existing in the organization and to provide an insight into the various functions who

can visualize things what they have been taught in classrooms. Actually, it is the life force of

management. It is in practical training that the effectiveness of management itself is realized.

I was fortunate enough to do my project in ―AKBAR CORPORATION LTD‖.

As a complementary to training, every trainee has to prepare and submit a report on the

working of the organization. This report is in continuation of that tradition. When I went for

training in ACL MORADABAD. And I convert my theoretical knowledge into practical

knowledge. I got lot of knowledge about my topic and I studied on project. It is an attempt to

present an account of practical knowledge and observations gathered during the training.

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EXECUTIVE SUMMARY

To study my topic on export procedure in international market at

AKBAR CORPORATION LIMITED MORADABAD.

Market scheme on sales are an important aspect of marketing. Organization followed the

different market scheme on sales in order to boost the sales volume.

On 14th

of June I started my project under the guidance of Mr.S.K.Maheshwari Export

manager and Mr.Naushad Ali finance manager and Accountant in dipty gunj Moradabad. I

have been allocated many work in organization like as export procedure and what import

material for product.

Market Area of export:

Hong Kong,

Korea,

Western Europe,

South America

Middle East

And worldwide

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TABEL OF CONTENTS-:

INTRODUCTION OF AKBAR CORPORATION LTD. (ACL)

MANEGMENT OF COMPANY

BOARD OF DIRECTOR

HIERARCHY OF THE COMPANY

QULITY POLICIES OF COMPANY

EXPORT ORIENTED UNIT STATUS OF THE COMPANY

COMPANY REGISTRATION WITH EXPORT PROMOTION COUNCIL OF

INDIA

QUALITY CERTIFICATE (ISO-9001 - 2000)

GREEN CARD HOLDER

IMPORT /EXPORT CODE (IEC)

LETTER OF PERMISSION (LOP)

BOND-17

EXPORT OBLIGATION

FOREIGN TRADE POLICY

BANKERS OF THE COMPANY

DOCUMENTATION

PAYMENTS TERMS

FORM FOR MAKING OUTWORD FOREIGN REMITTANCE

MAJOR EXPORT MARKET OF ACL

HOW TO EXPORT IN INTERNATIONAL MARKET

PRELIMINARIES STARTING EXPORT BUSINESS

CONCLUSION

BIBLIOGRAPHY

REFERENCES

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INTRODUCTION

Our approach:

Since the Akbar Corporation Ltd was established, it has been the objective of all the

ACL staff to provide the finest furniture in the market both in terms of design and quality.

We sought to combine contemporary design and modern day production techniques with

the furniture making skills of our craftsmen. Our constant aim is to understand the

markets in which we operate and to provide the services to support our clients. Innovation

and expertise are at the heart of Akbar Corporation Ltd.

Quality:

We build on quality through excellence in design and attention to detail in

manufacturing. Our quality extends to every part of every piece. Quality is controlled at

every stage, right from the purchases, storage, cutting, manufacturing, finishing and

packaging.

We unite our expertise with our highly skilled traditional craftsmen and the finest

hardwoods to produce a collection of handcrafted contemporary classics that will last for

generations.

One can discover endless outlets for self-expression in our collection. We combine

understated elegance with high standards of finish and comfort.

Material:

We have a deep affinity for solid wood. We enjoy working with a material featuring

sensuous highlights, such as grain and a variety of colors, which instills our furniture with

inherent individuality. Every piece made by us is available in European oak, Rock maple

and Indian rosewood.

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We have experts to select and buy quality raw material. It is our company's policy to

ensure that all wood used in the production of our furniture is sourced from sustainable

resources. This guarantees that both, wildlife and indeed the forest and plantations

themselves maintain the environmental balance so important to the exporting countries.

Welfare:

We are also committed to looking after the welfare of our workers, all of who are

provided with new housing on our site. We have many benefit and incentive schemes

available for our craftsmen, whose skills we consider to be our most valuable asset.

Design and Development:

We have regular arrangements for research and development of designs and material.

Well- known international designers design our furniture and all our designs are

copyrighted.

Machinery & Technical Development:

The Company is equipped with all the best German machines, for the production. We use

our skills in amelioration with the technical German collaboration and hence manufacture

the furniture, which, stands out from the crowd with an understated and relaxed sense of

style.

Unique Appeal:

When we bring together our straightforward approach to design with a material that

gives every piece a singular character, our furniture displays a unique and unrivalled

appeal.

" Our commitment to quality and enthusiasm for learning and teaching new skills is

without compromise. The care with which design innovation and manufacturing expertise

are combined in the company's operations and philosophy make it unique and a pleasure

to work with "

Our constant aim is to understand the markets in which we operate and to provide the

services to support our clients. Innovation and expertise are at the heart of Akbar

Corporation Ltd.

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We build on quality through excellence in design and attention to detail in manufacturing.

Our quality extends to every part of every piece. Quality is controlled at every stage, right

from the purchases, storage, cutting, manufacturing, finishing and packaging.

We unite our expertise with our highly skilled traditional craftsmen and the finest hardwoods

to produce a collection of handcrafted contemporary classics that will last for generations.

We have a deep affinity for solid wood. We enjoy working with a material featuring sensuous

highlights, such as grain and a variety of colors, which instills our furniture with inherent

individuality. Every piece made by us is available in European oak, Rock maple and Indian

rosewood.

We have experts to select and buy quality raw material. It is our company's policy to ensure

that all wood used in the production of our furniture is sourced from sustainable resources.

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MANAGEMENT OF THE COMPANY-

Company is working under the dynamic leadership of Mr. Akbar Qayyum, Chairman &

Managing Director. Mr. Akbar Qayyum is having experience of around 30 years in

international business and one of the pioneer in the field of export from Moradabad.

Day to day functions have been taken care by his son and Director of the Company Mr.

Adnan Akbar Qayyum who is possessing professional qualification from North Carolina

University, U.S.A.

Company is having well qualified senior management team, consists of Export Manager,

Finance Manager, HRD Manager, Purchase Manager etc.

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BOARD OF DIRECTORS

There are three board of director in Akbar Corporation Limited.

Mr Akbar Quayyum

Mrs Afsari Quayyum

Mr Adnan Quayyum

HIERARCHY OF THE COMPANY

MD/DIRECTOR

PRODUCTION MANAGER MARKETING MANAGER FINANCE MANAGER

SUPERVISOR EXPORT/IMPORT EXECUTIVE ACCOUNTANT

FOREMAN

SKILL WR UNSKILL WR

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QUALITY POLICIES OF THE COMPANY-

ACL is leading player in international market and for last three decades company is surviving

only on the base of its quality. Company always give emphasis on quality parameters.

Company is having three tier quality checks for its products:

1. As soon as company received raw material in unfinished shapes, their quality

controller check each and every piece for the level, leakage etc.

2. As soon as the goods reach in the finishing section a different quality controller again

check all the possible defects in the products

3. After finishing and before packing each and every piece has been checked under the

supervision of Quality Manager.

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Akbar Corporation Ltd., (100% E.O.U.)

EXPORT ORIENTED UNITS -

The Export Oriented Units (EOUs) scheme, introduced in early 1981, is complementary to

the SEZ scheme. It adopts the same production regime but offers a wide option in locations

with reference to factors like source of raw materials, ports of export, hinterland facilities,

availability of technological skills, existence of an industrial base and the need for a larger

area of land for the project. As on 31st December 2005, 1924 units are in operation under the

EOU scheme.

Objectives of the Export oriented unit:

The main objectives of the EOU scheme is to increase exports, earn foreign exchange to the

country, transfer of latest technologies stimulate direct foreign investment and to generate

additional employment.

Major Sectors in EOUs:

GRANITE

TEXTILES / GARMENTS

FOOD PROCESSING

CHEMICALS

COMPUTER SOFTWARE

COFFEE

PHARMACEUTICALS

GEM & JEWELLERY

ENGINEERING GOODS

ELECTRICAL & ELECTRONICS

AQUA & PEARL CULTURE

HANDICRAFT

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Export from EOU

Exports from EOUs during 2004-2005 were of the order of Rs.36806.17 crores as compared

to the export of Rs.28827.58 crores achieved during 2003-2004, registering a growth of

27.68%.

EOU Activities

Initially, EOUs were mainly concentrated in Textiles and Yarn, Food Processing, Electronics,

Chemicals, Plastics, Granites and Minerals/Ores. But now a day, EOU has extended it area of

work which includes functions like manufacturing, servicing, development of software,

trading, repair, remaking, reconditioning, re-engineering including making of

gold/silver/platinum jewellery and articles thereof, agriculture including agro-processing,

aquaculture, animal husbandry, bio-technology, floriculture, horticulture, pisiculture,

viticulture, poultry, sericulture and granites.

Need for Special License

To set up an EOU for the following sectors, an EOU owner needs a special license.

Arms and ammunition,

Explosives and allied items of defense equipment,

Defense aircraft and warships,

Atomic substances,

Narcotics and psychotropic substances and hazardous chemicals,

Distillation and brewing of alcoholic drinks,

Cigarettes/cigars and manufactured tobacco substitutes.

In the above mention cases, EOU owner are required to submit the application form to the

Development Commissioner who will then put them up to the Board of Approvals (BOA).

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Choosing the Location for EOU-

EOUs can be set up anywhere in the country and may be engaged in the manufacture and

production of software, floriculture, horticulture, agriculture, aquaculture, animal husbandry,

pisciculture, poultry, handicraft and sericulture or other similar activities.

However, it should be noted that in case of large cities where the population is more than one

million, such as Bangalore and Cochin, the proposed location should be at least 25 km away

from the Standard Urban Area limits of that city unless, it is to be located in an area

designated as an "industrial area" before the 25th July, 1991. Non-polluting EOUs such as

electronics, computer software and printing are exempt from such restriction while choosing

the area.

Apart from local zonal office and state government, setting up of an EOU is also strictly

guided by the environmental rules and regulations. Therefore, an even if the EOU unit has

fulfilled all locational policy but not suitable from environmental point of view then the

Ministry of Environment, Government of India has right to cancel the proposal. In such

situation industrialist would be required to abide by that decision.

EOU Unit Obligations:

The EOUs are required to achieve POSITIVE NFE (Net Foreign Exchange Earning). For

example if unit import of Rs.100 it should export for Rs.101.

Bonding Period of EOU

The EOUs are licensed to manufacture goods within the bonded time period for the purpose

of export. As per the Exim Policy, the period of bonding is initially for five years, which is

extendable to another five years by the Development Commissioner.

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COMPANY REGISTRATION WITH EXPORT

PROMOTION COUNCIL OF INDIA-

All the units which are engaged in export should be registed with respective Export

Promotion Councils. Likewise, Akbar Corporation Ltd., is registered with Export Promotion

Council of Handicrafts (EPCH).

EPCH is work under Development Commissioner of Handicraft, Government of India.

COMPANY CERTIFICATE(ISO-9001 - 2000)-

Set of international standards on quality management and quality assurance,

critical to international business .

ISO 9001 is a family of standards for quality management systems.

GREEN CARD HOLDER-

To promote EOU, Government of India is issuing Green Card to all the EOU. The benefiets

of the Green Card is that EOU gets special treatement in all the government offices in which

it requires permissions.

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IMPORT EXPORT CODE (IEC) ISSUED BY DGFT-

Directorate General of Foreign Trade, which is headed by the Director General of Foreign

Trade. The office of the DGFT is responsible for formulating and execution of Foreign Trade

Policy, including licensing. Till 1991, was known as the Chief Controller of Imports &

Exports (CCI&E).

DGFT is responsible for implementing the Foreign Trade Policy or Exim Policy with the

main objective of promoting exports. To regulate and keep check on international trade,

DGFT issue IEC. An IEC holder can only do the interntional trade.

IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade ,

Ministry of Commerce, Government of India to Indian Companies.

IEC Code No Notification:

Directorate General of Foreign Trade(DGFT) issued a Policy Circular No.15 (RE-

2006)/2004-2009 Date: 27th July, 2006) for New System for issuance of Importer-Exporter

Code Number.

Eligibility, Legal Provisions and Conditions for IEC Code Number

Eligibility condition and Legal Provisions are given for IEC Code Number Application in

Foreign Trade (Regulation) Rules, 1993 Ministry of Commerce, Notification No. GSR 791

(E), dated 30-12-1993.

Application for Grant of IEC Number

An application for grant of IEC number shall be made by the Registered/Head Office of the

applicant and apply to the nearest Regional Authority of Directorate General Foreign Trade,

the Registered office in case of company and Head office in case of others, falls in the

‗Aayaat Niryaat Form - ANF2A‘ and shall be accompanied by documents prescribed therein.

In case of STPI/ EHTP/ BTP units, the Regional Offices of the DGFT having jurisdiction

over the district in which the Registered/ Head Office of the STPI unit is located shall issue

or amend the IECs.

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Only one IEC would be issued against a single PAN number. Any proprietor can have only

one IEC number and in case there are more than one IECs allotted to a proprietor, the same

may be surrendered to the Regional Office for cancellation.

LETTER OF PERMISSION (LOP)

Letter of permission issued by the Development Commissioner of NSEZ to the unit is itself a

licence. EOU get detail of business which unit can undertake in LOP. Based on the items

covered under the LOP, unit can procure duty free imported and indigenous machinery and

raw material. LOP may also be used for the procurement of the items like furnace oil from

authorized oil companies since this is otherwise a canalised item and cannot be directly

imported by the export oriented units. Besides the import of capital goods is permitted on the

basis of self declaration by the unit, regarding the description, quantity and value of the

goods.

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BOND 17-

All the Export Oriented Units in India need to conduct its operations under the supervision of

the Customs and Central Excise Department. For this purpose, EOU has to sign a

multipurpose bond with the jurisdictional Deputy Commissioner of Customs and Central

Excise at the time of commencement of the unit. The bond is submitted in a prescribe format

along with the copy of EOU project report and Letter Of Proposal (LOP) to the Deputy

Commissioner‘s Office in the zone. Apart from these documents, EOU also need to submit a

worksheet authenticated by the authorized signatory showing the details of imported /

indigenous material covered by the Bond.

B-17 Bond Format is prescribed vide notification No. 6/98-CE (NT) dated 2-3-1998. The B-

17 Bond covers different types of activities that includes transshipment of import /export

goods between port of import/export and units' premises; duty-free import/procurement from

the original sources as per relevant notification and warehousing/storage in the unit;

movement of duty-free goods for job work and return; temporary clearance for repair and

display in exhibitions, testing/approvals etc.; and movement of goods against AR-4, AR-3A

and CT-3 etc. and transfer from one warehouse to another. However, B-17 Bond does not

cover the differential duty amount against advance DTA sale.

The B-17 Bond is taken for an amount equal to 25% of the duty forgone on the sanctioned

requirement of capital goods plus the duty forgone on raw materials required for 3 months.

Surety or security equivalent 5% of the bond amount in the form of bank guarantee is

required to be given by the EOUs.

B-17 Bond Format

On Rs.100/- Stamps Bond Paper

Form B-17 (General Surety / Security

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FOREIGN TRADE POLICIES-

The UPA Government has assumed office at a challenging time when the entire world is

facing an unprecedented economic slow-down. The year 2009 is witnessing one of the most

severe global recessions in the post-war period. Countries across the world have been

affected in varying degrees and all major economic indicators of industrial production, trade,

capital flows, unemployment, per capita investment and consumption have taken a hit. The

WTO estimates project a grim forecast that global trade is likely to decline by 9% in volume

terms and the IMF estimates project a decline of over 11%. The recessionary trend has huge

social implications. The World Bank estimate suggests that 53 million more people would

fall into the poverty net this year and over a billion people would go chronically hungry.

Though India has not been affected to the same extent as other economies of the world, yet

our exports have suffered a decline in the last 10 months due to a contraction in demand in

the traditional markets of our exports. The protectionist measures being adopted by some of

these countries have aggravated the problem. After four clear quarters of recession there is

some sign of a turnaround and the emergence of ‗green shoots‘, though I would be hesitant to

hazard a guess on the nature and extent of this recovery and the time the major economies

will take to return to their pre-recession growth levels. Announcing a Foreign Trade Policy in

this economic climate is indeed a daunting task. We cannot remain oblivious to declining

demand in the developed world and we need to set in motion strategies and policy measures

which will catalyse the growth of exports.

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HIGHLIGHTS OF FOREIGN TRADE POLICY 2009-2014

Higher Support for Market and Product Diversification

1. Incentive schemes under Chapter 3 have been expanded by way of addition of new

products and markets.

2. 26 new markets have been added under Focus Market Scheme. These include 16 new

markets in Latin America and 10 in Asia-Oceania.

3. The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to

3%.

4. The incentive available under Focus Product Scheme (FPS) has been raised from 1.25% to

2%.

5. MLFPS benefits also extended for export to additional new markets for certain products.

These products include auto components, motor cars, bicycle and its parts, and apparels

among others.

6. A common simplified application form has been introduced for taking benefits under FPS,

FMS, MLFPS and VKGUY.

7. Higher allocation for Market Development Assistance (MDA) and Market Access

Initiative (MAI) schemes is being provided.

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BANKER OF THE COMPANY-

Company is banking with

Indian Overseas |Bank

Moradabad

DOCUMENTATION-

DGFT has made a uniform format of documentation which is being used in

international business. In the prescribed format company issue

Invoice

Packing List

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PAYMENT TERMS-

LC-Letter of credit

DP-Documents againts payment

TT-Telegraphic/talax

CAPITAL STRUCTURE OF ACL

AKBAR CORPARATION LIMITED is private limited Company and its capital

structure totally own share its mean equity share company and details given below-

SHARE HOLDER- 7 CRORE

BANK LIMIT FOR RAISING FUND- 1 CRORE

ASSETS-

FIXED ASSETS- 5 CRORE

CURRENT ASSETS- 3.5 CRORE

LIABILITY-

CURRENT LIABILITY- .25 CRORE

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FORM FOR MAKING OUTWARD FOREIGN REMITTANCE-

Recently RBI has made amendment in its polices. Now every exporter needs to fill online

Form 15AB and after submitting the same to RBI, RBI give online registration number. The

Form 15AB will go to Bank along with all other required documents like invoice etc. And

based on that bank will transfer the payment to overseas supplier.

Major Export Market of ACL:

Central & South America

Eastern Europe

Hong Kong

Korea

Middle East

Western Europe

Worldwide

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HOW TO EXPORT IN INTERNATIONAL MARKET:

GOLDEN RULE

SELL EXPERIENCE

SELLING IN EXPORT

ON TIME DELIVERIES

COMMUNICATION

TESTING PRODUCTS

APPROACH

Golden Rule:

In order to be successful in exporting one must fully research its markets. No one should ever try to

tackle every market at once. Many enthusiastic persons bitten by the export bug, fail because they bite

off more than they can chew. Overseas design and product requirements must be carefully considered.

Always sell as close to the market as possible. The fewer intermediaries one has the better, because

every intermediary needs some percentage for his share in his business, which means less profit for

the exporter and higher prices for the customer. All goods for export must be efficiently produced.

They must be produced with due regard to the needs of export markets. It is no use trying to sell

windows which open outwards in a country where, traditionally, windows open inwards.

Sell Experience:

If a person cannot easily export his goods, may be he can sell his experience. Alternatively, he can

concentrate on supplying goods and materials to exporters' who already have established an export

trade. He can concentrate on making what are termed 'own brand' products, much demanded by

buyers in overseas markets which have the manufacturing know-how or facilities.

Selling in Export:

In today's competitive world, everyone has to be sold. The customer always has a choice of suppliers.

Selling is an honorable profession, and you have to be an expert salesman.

On-Time Deliveries:

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Late deliveries are not always an exporters fault. Dock strikes, go-slows, etc. occur almost

everywhere in the world. If one enters into export for the first time, he must ensure of fast and

efficient delivery of the promised consignment.

Communication:

Communication internal and external must be comprehensive and immediate. Good communication

is vital in export. When you are in doubt, pick up the phone or email for immediate clarification.

Testing Product:

The risk of failure in export markets can be minimized by intelligent use of research. Before

committing to a large-scale operation overseas, try out on a small scale. Use the a sample test, and any

mistakes can then be corrected without much harm having been done

Approach:

If possible some indication of the attitudes towards the product should be established, like any sales

operation. Even if the product is successful, to obtain reactions from the customer.

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PRELIMINARIES FOR STARTING EXPORT

BUSINESS:

SETTING UP A N APPROPRIATE BUSINESS ORGANIZATION

CHOOSING APPOPRIATE MODE FO ACTION

NAMING THE BUSINESS

SELECTING THE MARKETS

SELECTING PROSPECTING BUYERS

SELECTING CHANNELS OF DISTRIBUTION

NEGOTIATION WITH PROSPECTIVE BUYERS

PROCESSING AN EXPORT ORDER

ENTERING INTO EXPORT CONTRACT

EXPORT PRICING AND COSTING

UNDERSTANDING RISK IN INTERNATIONAL TRADE

Setting up an appropriate business organization

The first and the foremost question you as a prospective exporter has to decide is about the kind of

business organisation needed for the purpose. You have to take a crucial decision as to whether a

business will be run as a sole proprietary concern or a partnership firm or a company. The proper

selection of organisation will depend upon

Your ability to raise finance

Your capacity to bear the risk

Your desire to exercise control over the business

Nature of regulatory framework applicable to you

Exporters Manual and Documentation

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Company is another form of business organisation,which has the advantage of distinct legal identity

and limited liability to the shareholders. It can be a private limited company or a public limited

company. A private limited company can be formed by just two persons subscribing to its share

capital. However, the number of its shareholders cannot exceed fifty, public cannot be invited to

subscribe to its capital and the member's right to transfer shares is restricted. On the other hand, a

public limited company has a minimum of seven members

Choosing appropriate mode of operation

You can chose any of the following modes of operations:

Merchant Exporter i.e. buying the goods from the market or from a manufacturer and then

selling them to foreign buyers.

Manufacturer Exporter i.e. manufacturing the goods yourself for export Sales

Agent/Commission Agent/Indenting Agent i.e. acting on behalf of the seller and charging

commission Buying Agent i.e. acting on behalf of the buyer and charging commission

Naming the Business

Whatever form of business organisation has been finally decided, naming the business is an

essential task for every exporter. The name and style should be attractive, short and

meaningful. Simple and attractive name indicating the nature of business is ideal. The office

should be located preferably in a commercial complex, in clean and workable surroundings.

The letter head should be simple and superb providing information concerning H.O.,

branches, cable address, telephone number, fax number, banker's name and address etc. Pick

up a beautiful trade name and logo which reinforces your organisation's name and image.

Selecting the Company

Carefully select the product to be exported. For proper selection of product, study the trends

of export of different items from India. The selected product must be in demand in the

countries where it is to be exported. It should be possible to procure or manufacture the

selected product at most economic cost so that it can be competitively priced. It should also

be available in sufficient quantity and it should be possible to supply it repeatedly and

regularly

Selecting the markets

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Target markets should be selected after careful consideration of various factors like political

embargo, scope of exporter's selected product, demand stability, preferential treatment to

products from developing countries, market penetration by competitive countries and

products, distance of potential market, transport problems, language problems, tariff and non-

tariff barriers, distribution infrastructure, size of demand in the market, expected life span of

market and product requirements, sales and distribution channels. For this purpose you

should collect adequate market information before selecting one or more target markets. The

information can be collected from various sources like Export Promotion Council

(EPCs)/Commodity Boards, Federation of Indian Export Organisation, (FIEO), Indian

Institute of Foreign Trade (IIFT), Indian Trade Promotion Organisation (ITPO), Indian

Embassies Abroad, Foreign Embassies in India, Import Promotion Institutions Abroad,

Overseas Chambers of Commerce and Industries, Various Directories, Journals, Market

Survey Reports.

Selecting prospective Buyers

You can collect addresses of the prospective buyers of the commodity from the following

sources:

Enquiries from friends and relatives or other acquaintances residing in foreign countries.

Visiting/ participating in International Trade Fairs and Exhibitions in India and abroad.

Contact with the Export Promotion Councils, Commodity Boards and other Government

Agencies.

Selecting channels of distribution

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

markets :

Exports through Export Consortia

Export through Canalising Agencies

Export through Other Established Merchant Exporters or Export Houses, or Trading

Houses

Direct Exports

Export through Overseas Sales Agencies

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Negotiating with Prospective Buyers

Whatever the channel of distribution for exporting to the overseas countries is proposed to be

is utilized, it is essential that the exporters should possess the necessary skill for negotiating

with the overseas channels of distribution. The ability to negatiate effectively is needed for

discussion with importers or trade agents. While conducting business negotiations, the

prospective exporter should avoid conflict, controversy and criticism vis-`-vis the other party.

During conversation the attitude should be to communicate effectively

Processing an Export order

You should not be happy merely on receiving an export order. You should first acknowledge

the export order, and then proceed to examine carefully in respect of items, specification,

preshipment inspection, payment conditions, special packaging, labeling and marketing

requirements, shipment and delivery date, marine insurance, documentation etc. if you are

satisfied on these aspects, a formal confirmation should be sent to the buyer, otherwise

clarification should be sought from the buyer before confirming the order. After confirmation

of the export order immediate steps should be taken for procurement/manufacture of the

export goods

Entering into an Export contract

In order to avoid disputes, it is necessary to enter into an export contract with the overseas

buyer. For this purpose, export contract should be carefully drafted incorporating

comprehensive but in precise terms, all relevant and important conditions of the trade deal.

The different aspects of an export contract are enumerated as under :

Product, Standards and Specifications

Quantity

Inspection

Total Value of Contract

Terms of Delivery

Taxes, Duties and Charges

Period of Delivery/Shipment

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Packing, Labeling and Marking

Terms of Payment-- Amount/Mode & Currency

Discounts and Commissions

Licenses and Permits

Insurance

Documentary Requirements

Guarantee

Force Majeure of Excuse for Non-performance of contract

Remedies

Export Pricing and Costing

Export pricing should be differentiated from export costing. Price is what we offer to the

customer.Cost is the price that we pay/incur for the product. Price includes our profit margin,

cost includes only expenses we have incurred. Export pricing is the most important tool for

promoting sales and facing international competition. The price has to be realistically worked

out taking into consideration all export benefits and expenses. However, there is no fixed

formula for successful export pricing. It will differ from exporter to exporter depending upon

whether the exporter is a merchant exporter or a manufacturer exporter or exporting through a

canalising agency. You should also assess the strength of your competitor and anticipate the

move of the competitor in the market. Pricing strategies will depend on various circumstantial

situations. You can still be competitive with higher prices but with better delivery package or

other advantages

Your prices will be determined by the following factors:

Range of products offered

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Prompt deliveries and continuity in supply

After-sales service in products like machine tools, consumer durables

Product differentiation and brand image

Frequency of purchase

Presumed relationship between quality and price

Specialty value goods and gift items

Credit offered

Preference or prejudice for products originating from a particular source

Aggressive marketing and sales promotion

Prompt acceptance and settlement of claims

Unique value goods and gift items

Understanding risks in International trade

While selling abroad, you may undergo the following risks:

Credit risk

Currency risk

Carriage risk

Country risk

These risks can be insured to a great extent by taking appropriate steps. Credit risk against the

buyer can be covered by insisting upon an irrevocable letter of credit from the overseas

buyer. An appropriate policy from Export Credit and Guarantee Corporation of India Ltd. can

also be obtained for this purpose. Country risks are also covered by the ECGC. As regards

currency risk, i.e. possible loss due to adverse fluctuation in exchange rate, You should obtain

forward cover from your bank authorised to deal in foreign exchange.

Registration

Registration with Reserve Bank Of India: No longer required. Prior to 1.1.1997 it was

compulsory for every exporter to obtain an exporters' code number from the Reserve Bank of

India before engaging in export. This has since been dispensed with and registration with the

licensing authorities is sufficient before commencing export or import.

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Registration with Regional Licensing: Authorities (obtaining IEC Code Number) The

Customs Authorities will not allow you to import or export goods into or from India unless

you hold a valid IEC number.

PRODUCT OF THE ACL:

Product/Service

Range:

Decorative Accessories of Brass, Garden Accessories, Handicrafts,

Lighting, General House Ware, Wrought Iron Furniture & Gift Items

PRODUCTS IMAGE-

Aluminum

Decoration

Silver-Plated

Aluminum Fruit Bowl

Aluminum Vase

Aluminum Vase

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WOODEN CANDLE

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METAL CANDLE

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IRON CANDLE

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TIMBER INFO-(USE IN ACL)

Hardwood may no longer account for the majority of today's furniture, but it will always

be special, the material of choice for discerning customers and uncompromising

manufacturers.

The character, warmth and beauty bestowed by its grain, combined with the inherent

strength and texture given by its form, renders hardwood unique.

Our furniture is a showcase for the outstanding qualities of solid wood.

We use only hardwoods for our furniture essentially including the Indian

Rosewood, European Oak and the Hard Maple.

The European Oak (Quercus Robur) is a hardwood usually straight and long grained in

trees cut from large stands. Quarter sawn European Oak tends to have a silvery grain

structure. The wood's texture is coarse and characterized by open pores. Wood harvested

from the northern areas of the species distribution zone tends to be denser and tougher.

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The wood from the central regions is less denser and more straighter and uniform.

The colors of the wood vary from light brown to a dark tan. Sapwood and heartwood

have similar colors and grain patterns. Sapwood tends to be lighter in color. The wood

has a very good steam bending classification. It dries very slowly. A yellow stain that

eventually disappears is common during drying. The wood takes liming, waxing and

polishing treatments very well. The heartwood is durable and is extremely resistant to

preservative treatment.

The European oak is ideal for boat building, high-class joinery, flooring, furniture and is

sliced for decorative veneers.

The hard Maple (Acer Saccharum) is a hardwood. The sapwood is creamy white with a

slight reddish brown tinge and the heartwood varies from light to dark reddish brown.

The amount of darker brown heartwood can vary significantly according to growing

region. Both sapwood and heartwood can contain pith fleck. The wood has a close fine

texture and is generally straight grained, but it can also occur as "curly", "fiddleback",

and "birds-eye" figure. The superior working characteristics make maple an exceptional

furniture wood. With care it machines well, turns well, glues satisfactorily, and can be

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stained and polished to an outstanding finish. The wood is hard and heavy with good

strength properties, in particular its high resistance to abrasion and wear. It also has good

steam bending properties. The timber dries slowly with undue difficulty. It is excellent

for flooring, furniture, paneling, kitchen cabinets, worktops and table tops, interior

joinery, stairs, handrails, moldings, and doors.

The Indian Rosewood (Dalbergia latifolia) is a hardwood with a narrow interlocked

uniform grain, with a moderately coarse texture, and low luster. The colors of the

heartwood vary from a golden brown to a dark purple brown with darker streaks giving

the wood a very intense and interesting pattern. This wood is heavy, hard and dense with

high bending and crushing strengths, medium shock resistance, good stability, excellent

steam bending characteristics and a very durable heartwood. The timber seasons well

and dries defect free in log form. The color of the wood improves during the drying

process and the end product takes an excellent finish.

The grain requires filling to achieve a high polish. It responds well to a wax polish.

Indian Rosewood is ideal for fine furniture and cabinetwork, turnery, decorative veneers

and specialty items.

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CONCLUSION

Akbar Corporation limited is good position in this period and good running in the export

sector. It makes many types of product like as totally handicraft product.No sell in India only

export out of country.It is Handicraft product manufacturing company.Its export manager is

very good person and have lot of experience in export field.

I got lot of knowledge about export procedure and how to manage in Organization

Mr Akbar Qayyum has 32 years experience in export field.

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BIBLIOGRAPHY:

http//:wwwakbardesign.com

http//:www.hktdc.com/sourcing/products

http//:www.indiandata.com/trade_policy

text book:export oriented unit and sez unit

REFERENCES:

http://www.clickz.com/stats/sectors/export/article.php/

http://www.esearch.com/currentstudies/3qsummary99.htm

http//:www.sharekhan.com

http//:www.paisabuilder.com

http//:www.akbarbrassproduct.com

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