Page 215 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes Based on the details of the enquiry, Ratnesh will prepare his quotation, also called a
Proforma Invoice and submit the same to his buyer for approval.

Task Discuss the beginning step of export transaction.

12.2.3 Order Receipt and Acceptance

If the buyer is satisfied with the quotation, he will approve the same and place a firm order
on Ratnesh. If the importer wants certain changes in the offer from Ratnesh, he will ask
Ratnesh and after due negotiations/discussions, mutually agreed changes will be made
by Ratnesh and the quote will have to be resubmitted. The buyer will approve this new
quote and place a firm order on Ratnesh.
On receipt of the order, Ratnesh must immediately acknowledge the acceptance of the
same.

12.2.4 Finance, Production and Packing

Ratnesh will need to arrange finance to produce the order in time. He could avail the pre-
shipment finance facilities offered by all nationalized banks to exporters in India at special
interest rates.
Ratnesh will also organize production for timely shipment. He will ensure compliance of
quality standards as per the buyer’s expectations. In case, a pre-shipment inspection is
required by the customer’s nominated agency, Ratnesh will have to get their approval as
well.
Ready goods will need to be packed as per the instructions of the importer. In the absence
of any such instructions, Ratnesh will have to ensure good export-worthy packing.

12.2.5 Excise Clearance

Before Ratnesh is allowed to remove the goods for export from his factory/godown, he will
need to complete excise formalities, if his unit falls under the purview of excise.

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Caution Goods exported from India are free from payment of excise duties and the exporters
are required to follow the procedure prescribed to claim this benefit under the Central
Excise Act, 1944.

12.2.6 Export Documents

Ratnesh will now prepare the basic export documents, Invoice and Packing List. He will hand
these over to his C&F agent.

C&F agent will prepare shipping documents including the following:
Shipping Bill in multiple copies
Commercial Invoice
Packing List
SDF (in duplicate)

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