Page 214 - DMGT547_INTERNATIONAL_MARKETING

Unit 12: Export Procedures and Policies

Mr Peters cautions that one of the downsides of doing business in India is the amount of Notes
bureaucracy which is often involved.

“Many organisations seem to have taken British bureaucracy and tripled it,” he adds. “We
do more Letters of Credit for India than anywhere else and it is the preferred option for
most of the nationalised industries. The extra paperwork creates a lot of additional work
with the order processing and payments procedures.
“In India, more than any other country in the world, paperwork is done in triplicate and
there are a lot of stages in the purchasing process. But if you get it right, Indian companies
are happy to deal with you again.”

Source: http://www.chamber-international.com/export-import-key-markets/export-to-india/what-is-
export-business/

12.2 Example of Export Procedure

To focus better on the issue, let us take the example of an exporter Ratnesh from Delhi, who deals
dealing in auto parts. He receives an enquiry from abroad for supplying a certain part in good
numbers. Now we will see the step-by-step route that Ratnesh needs to follow.

12.2.1 Enquiry

This is the beginning of an export transaction. This reflects the buyer’s interest and specific
requirements.
In this case, Ratnesh ideally should have received the following details:
Vehicle Model Number and its Type (like Isuzu 312, MUV)
Original Part Number and its full description (like 01256, radiator hose)

Size/Technical specifications
Drawing
Original Sample
Quantity required

Packing Requirements
Price Specification Required - FOB/C&F/CIF
Delivery Schedules
Mode of Shipment - Sea/Air

Mode of Payment - like Letter of Credit
Production sample approvals, if required
Pre-shipment Inspection Requirements, if any
Any other Certification/Compliance required, like a Certificate of Origin

12.2.2 Quotation

Ratnesh must go through all the details in the enquiry and in case there is need for some
clarifications, he must immediately get in touch with the buyer.

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