Golden Rules for Successful Exporting

Golden Rules for Successful Exporting :

Export is one of the most lucrative business activities. The Governments also provide various incentives to the exporters for earning valuable foreign exchange for the country for meeting their requirements for importing modern technology and essential inputs. Besides, the income from export business is also exempt to the specified extent under the Income Tax Act.

Refund of Central Excise and Custom Duty on export is also made. There is no Sales Tax on products meant for exports. Drawback payment procedures have been.

Duty free import of raw materials is allowed under various schemes. These schemes have been simplified to a great extent. Replenishment licenses are also available /given against export of certain specific items.

Export oriented units under the 100% EOU Scheme are eligible for special facilities, such as exemption from excise/custom duty, sale in domestic tariff area including sale of rejected goods/wastage etc.

Special facilities are also available for Electronics Hardware Technology Parks (EHTP) and units under Software Technology Parks (STP) Schemes. Foreign Exchange Regulations have been substantially liberalized for exporters. Liberal release of foreign exchange is made available for travel abroad. Norms for establishing offices abroad by the exporters have been eased. Export Credit is available to the exporters at concession rates of interest. The same can be availed of in foreign currency.

Interest tax on export credit has been abolished. Export Credit and Guarantee Corporation is overhauling its international operations and offers risk coverage services to exporters. Transport subsidy is given for export by Air as well as RaiI. Import Policy has also been liberalized substantially for export oriented imports. Domestic Companies have been allowed to bid in any currency.

Various houses have introduced EDI system of cornputerised processing of import and export transactions.

In order to be successful in exporting one must fully research its markets rather than try to tackle every market at once. One should identify major markets and should approach them as per priority given. 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 the business, which means less profit for the exporter and higher prices for the customer. However in the initial phase one can explore options with intermediary to keep cost of operation low.

All goods for export must be efficiently produced. They must be produced with due regard to the needs of the export markets. It is no use trying to sell windows which open outwards in a country where, traditionally, windows open inwards.

  • Golden Rules for Exporting
  • Abbreviations Commonly Used in Export Trade

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