mechanism of trading internationally
DESCRIPTION
TRANSCRIPT
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Mechanism of trading internationally
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The Trade Transaction
GOODS
A BINFORMATION
PAYMENT
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Eleven step process Step 1
Prepare a Business plan
Name of the organization
Registration under
companies act
Open a bank account
Step 2
Product selection for
export Market research Product evaluation
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Step 3
Registration with Director General of Foreign Trade to
get IEC number
Step 4
Registration with the relevant
export promotion
Registration with Sales Tax Office
Registration with Export Credit Guarantee
Corporation
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Step 5
Market Identification Need Analysis
Step 6
Channel SelectionAgents/Distributors/
Wholesalers/ EndUser s/ Sales Reps
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Step 7
Identifying the Potential Buyers / Customers
Trade Fairs/Internet/ Personal Visits/Contacts/Agents
Going for procuring orders
Step 8
Agreeing upon pricing, document ,freight charges, currency ,delivery etc.
Signing of contract
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Step 9
Determining the payment terms
Advance Payment/ Letter of Credit (LC) / Open Account
Step 10
Importer sends
purchase order
Production Packaging, warehousing
Certificate of quality control
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Step 11
Prepare marine, air, and docs
Insurance certificate,
shipping bill Receipt, Bills of
lading
Transportation Maritime / Air /
Road / Rail
Submission of docs to banks
Bank sends docs to importer’s
bank .payment is done
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International trade transaction procedures
CommercialProcedures
• Establish Contract
• Order Goods• Advise On
Delivery• Request Payment
TransportProcedures
• Establish Transport Contract
• Collect,Transport and Deliver Goods
• Provide Goods Receipts Status reports
RegulatoryProcudures
• Obtain Import/Export Licences etc
• Provide Customs Declarations
• Provide Cargo Declaration
• Apply Trade Security Procedures
• Clear Goods for Export/Import
Financial Procedures
• Provide Credit Rating
• Provide Insurance
• Provide Credit• Execute Payment• Issue Statements
Prepare For
ExportExport
TransportImport
SHIPBUY PAY
Prepare For
Import
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Commercial procedures
Establish contract
Order goods
Advice on delivery
Request for payment
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Transportation procedures
Establish transport contract
Collect, transport and deliver goods
Provide goods receipts and status reports
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Regulatory procedures
Obtain import export licenses
Provide customer deceleration
Provide cargo deceleration
Apply trade security procedures
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Finance procedures
Provide credit rating
Provide insurance
Provide credit
Execute payment
Issue statement
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Questions….
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Thank you!!!