Friday 29 March 2019

Frequently asked questions in Export Import

I have been receiving below Frequently asked questions : 
1.       How and where can I apply import export licence?
2.       What are fees for import export licence?
3.       How much time does it take to get licence?
4.       What are documents required in export import licence?
5.       What payment term shall I offer to buyer in export?
6.       How to make costing of my product?
7.       Where shall I export my product?
8.       How can I expand my export business?
9.       What are benefits available from Government in export?
10.   How to find out import custom duty online?
11.   What is best Incoterm to offer in export?
12.   How to find out genuine buyer?
13.   Is payment secure in LC?
14.   What is difference between consignee and notify party?
15.   What are the risks in export and how to manage the same?
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Thanks and regards.

Sunday 24 March 2019

Recent case study

Recent case study.
Exporter ABC, in India was already in local business of ‘mineral water’. Hence there was no need for them to select product for export. He worked out and selected market in one of the country in West Africa. It was supply to Government. There was an agent between Government supply and exporter. The agent was ready to take the same in a very big quantity and agreed price of US$1 per 1 liter bottle. Agent asked exporter to send two cartons of 20 water bottles each as samples for laboratory test. He also said to exporter to inform Courier Company not to deliver cartons at address and agent will go and collect the same from Courier Company.
While sending samples ABC Company was informed by Courier Company that they cannot take full bottles, hence seals must be broken and little water was also taken out. This was informed to buyer’s agent, and he agreed to. The samples were not reached yet, and buyer asked ABC to send remittance of equivalent Rs.2.50 laks for lawyer’s fees, who will do the needful on behalf of seller to make legal agreement between buyer and seller.
ABC, approached me. I studied full case, and even wrote to Indian consulate and Economic affairs in buyer’s country to verify genuineness of transaction and found it fake.
While studying I had doubt that:
(1)  How buyer agreed such a big price of US$1.00 per 1 liter water bottle. This is not international price.
(2)  Why did he said not to send samples on address and he will collect it from courier company
(3)  He did not receive sample, seal of which was broken and still he agreed to go ahead with this transaction.
Yes, this happened with several other new exporters too.  Now how to take care not to be duped by fake buyers. One should see the prima facie, does transaction looks like happening, or we are too eager to do the transaction without taking pre cautionary steps.
Pre-cautionary steps are first finding out the genuineness of buyer from Dun and Brad Street by applying credit report on buyer. By applying credit risk with ECGC, Export Credit Guarantee Corporation of India. After satisfying credit worthiness of buyer only then go ahead with the transaction.
Fraud buyer abroad is there who are looking for new exporter who has no sufficient knowledge.
So be careful and acquire knowledge first. If you do the export systematically, your money is safe.