Académique Documents
Professionnel Documents
Culture Documents
Scope of IM
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Objective
Deals with goods & services
Generate consumer satisfaction
Generate faith
Freedom to consumers
Similar technical attributes
Existence on research & development
Susceptible to environmental changes
Contribution to economic growth
Significance of IM
1. Helpful in importing industrial inputs
2. Optimum utilization of resources
3. Employment generation
4. Leads to economic growth
5. Less demand at domestic level
6. Relatively profitable
7. Less business risks
8. Enhanced productivity
9. Better trade relations
10.
Generates political harmony
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International unions
12.
Technological upgradation
13.
Obsolete products
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Social responsobilty
Legal restraints
Improvement in stardard of living
Helpful in utilization pf excess capacity
Contributution of exports to national imcome
Helpful in meeting debt obligation
Ethnocentric approach
Polycentric approach
Regiocentric approach
Geocentric approach
Language barriers
Less mean of transport & communication
Restrictions of imports & exports
More risk uncertainty
Long distance
Difficulty in collection of information
Excessive documentation & procedure
Problems in payment
Lack of information on different market facts
Technology
Flow of funds
Unbalanced growth
Morality & ethics
5. Political interference
6. Evasion of taxes
7. Threat to the indigenous producers
8. Production of prohibited goods
9. Small scale industries
10.
Brain drain
11.
Non essential goods
12.
Inappropriate technology
13.
Bargaining power
14.
Monopoly
15.
Demonstration effect
16.
Multiple collaboration
17.
Exploitation of resources
18.
Loss of culture
19.
Economic power
20.
Profit oriented
Volume of trade
Composition of foreign trade
Direction of trade
Balance of trade
main governing body in matters related to EXIM Policy. This policy is updated
every year with some modifications and new schemes. New schemes come
into effect on the first day of financial year i.e. April 1, every year.
New EXIM policy 2009-2014
Union minister Mr. Anand Sharma announced the EXIM policy for the
5 yr period 2009-2014 on 27th august 2009 with the long term
objective of doubling Indias share in global trade by 2020
Objectives of EXIM policy
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(ii)
(ii)
(iii)
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Negative Features:1.
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Advance payment
Payment by opening account
Payment through documentary bills
Payment on consignment basis
Payment of letter of credit
a) Parties to a letter of credit
i) Importer- who opens the letter of credit
ii) Exporter- in whose favour letter of credit is opened
iii) Opening bank- importers bank
iv) Negotiating/beneficiarys bank- exporters bank
Buyers knowledge
Financial condition of the buyer
Cost involved in the collection
Restriction on exchange
Competition
Security of payment
Export financing
A. SHORT TERM FINANCE
1) Pre-shipment finance
i) Requirements for getting the pre-shipment
ii) Scope
iii)Forms of pre shipment finance
(1)Extended packing credit loan
(2)Packing credit loan
(3)Secured shipping loan
(4)Combination of clean and secured advance
(5)Inland/import letter of credit
(6)Running account facility
(7)Letter of credit or firm credit
(8)Advance against duty drawback
(9)Pre-shipment credit in foreign currency scheme (PCFC)
2) Post-shipment finance
i) Forms of post-shipment finance
(1)Purchase of export documents
(2)Advance against export sent on collection
(3)Advance against goods sent on consignment basis
(4)Advance against undrawn balance
(5)Advance against claims of duty drawbacks
(6)Negotiation of export documents drawn under letter of credit
B. MEDIUM AND LONG TERM FINANCE
1) Medium term finance- it extends to a period beyonf 6 months and less
than 5 years for export
Export procedure
1) RBI code number
2) Registration for availing benefits
3) Importer-exporter code (IEC) number
Procedure for an Export Order
1) Receipt of enquiry
2) Scruitinisation of the order
a) Terms and conditions of the contract
b) Terms n modes of payment
c) Mode of delivery n its schedule
d) Required documents
e) Rules n regulations of both importing n exporting country
3) Giving acknowledgement
4) Arrangement of goods
5) Payment of excise duty
6) Inspecting goods
7) Arranging insurance
8) Shipment of goods
9) Preparation of shipping bill
10) Getting mates receipt
11) Informing importer about shipment
12) Submitting documents to bank
13) Receiving payment