Page 237 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes
Union Commerce Minister Kamal Nath said this was in keeping with his promise made in
2006 that exporters and importers would be spared from filing multiple application forms
at various stages.

He said a committee, set up under chairmanship of DGFT, had submitted its report. “We
shall be implementing them,” he said.
Electronic Data Interface (EDI) linkage will be ensured among all trade partners, like
DGFT, customs, banks, export promotion councils, to facilitate online filing, verification
and retrieval of documents.
A fast-track mechanism is being introduced for clearance, packaging, quarantine, etc.,
to facilitate import and export of perishable cargo. Time limits will be laid down for
approvals/sanctions to ensure transparency in government departments and to ensure
quality of service.
Moving towards an “automated electronic environment”, the global trading community
can now reach for a single source for all policy-related information, which will be available
on the DGFT site. Video conferencing will replace manual filing of documents. This will
be done via digital signatures. A special-purpose vehicle for electronic license use and
transfer mechanism is being planned.

A six-month timeframe has been set for the customs and DGFT to complete EDI linkages.
Once done, manual submission of shipping bills and other documents will be a thing of
the past. Online verification will reduce transaction costs and time.

An Importer Exporter Code (IEC) number will be issued online. Linking the DGFT database
with the income-tax PAN database, by using digital signatures, will do this.
Other e-governance initiatives are also being planned. The effort is to reduce human
interface with DGFT offices.
Source: The Financial Express, April 8, 2005 & www.financialexpress.com
Export documentation plays a vital role in international marketing as it facilitates the smooth
flow of goods and payments thereof across national frontiers. A number of documents accompany
every shipment. These documents must be properly and correctly filled. Export documentation
is, however, complex as the number of documents to be filled in is large, so also is the number
of concerned authorities to whom the relevant documents are to be submitted. Moreover
documents required differ from country to country.
Incorrect documents may lead to non-delivery of goods to the importer. You may get the correct
documents after some time but in the meantime storage charges may have to be paid. More
important, the importer will think twice before importing from the same exporter.
It is therefore, advisable to take the help of shipping and forwarding agents who will obtain fill
out the documents correctly as well as arrange for transportation. But every exporter should
have an adequate knowledge about export documents and procedures.
On the basis of the functions to be performed, export documents can be classified under four
categories:
1. Commercial Documents: These include commercial invoices, bills of exchange bills of
lading, letters of credit, marine insurance policy and certificates.
2. Regulatory Documents: These are the documents which are required for complying with
the rules and regulations governing export trade transactions such as foreign exchange
regulations, customs formalities export inspection, etc.

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