12. EXIM

EXIM Policy or Foreign Trade Policy is a set of guidelines and instructions established by DGFT (Directorate General of Foreign Trade) in matters related to the import and export of goods.

Exim banks are government or semi-government agencies that ensure the safety and growth of countries foreign trade.

12.1 Objective of the EXIM Policy Government imports control on-essential items through the Exim policy. At the same time, all efforts are made to promote exports.

Two aspects of Exim policy:

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The Import policy, which is concerned with the regulation and management of imports The Export policy, which is concerned with exports not only promotion but also regulations

12.2 Import and Export Procedures 1. Establish company, open business bank account and apply for export, import license 2. Contact with buyers and make offers 3. Send Samples to your overseas buyers 4. Confirm the order from buyer and receive money a. Issue the“Performa Invoice” and request the first payment 5. Prepare order to your customer 6. Final inspection by buyer before shipping and Final Payment 7. Receive balance payment against Bill of Lading and test report copy 8. Send all the original docs to your customer and support him

12.3 Documentation in Export Import 1. Performa Invoice (PI): State the value per unit for the goods 2. Sale –Purchase contract: Proof of purchase –sale between parties 3. Packing List 4. Bill of lading/ Air way bill 5. Certificate of Origin: Lower the import duties. It is required by some countries for all or only certain products

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a. A certificate of origin (CO) is a document declaring in which country a commodity or good was manufactured. The certificate of origin contains information regarding the product, its destination, and the country of export CE Certificate: CE marking is a certification mark that indicates conformity with health, safety, and environmental protection standards for products sold within the European Economic Area (EEA) Material Safety Data Sheet (MSD): Material Safety Data Sheet issued by the exporter and must confirm that product is not harmful to humans and nature. This doc is usually required for liquid as well as semi liquid products. Freight insurance certificate