In the world of export-import, each shipment counts. And you cannot afford to make any “uninformed investment”. So, if you have any doubt or a question, ask us. Our team of experts at The Dollar Business Intelligence Unit will be happy to answer your queries. Your question(s), if approved, will also be published on www.thedollarbusiness.com, and/or in the forthcoming issue of The Dollar Business
We plan to export raw cotton across the globe. We have confirmed suppliers for the material. The transaction value of the shipment is approximately $50,000 per container and we expect to sell 20 to 30 containers per month. Our customers are have agreed to payment terms of LC at sight or LC at sight after 30 days. However, our suppliers need to be paid before we can ship the product. As traders, we are not interested in investing more money. What could be the best way to arrange for financing? (Lijish, Managing Director, Sealand International Merchants Pvt. Ltd., +91-9961996XXX, email@example.com)
Dear Lijish: We are glad to know that you want to export raw cotton across the world and have already been able to secure both buyers and suppliers for the same. Since your customers have agreed to open Letter of Credits (LCs) favouring your company, you will be eligible for availing pre-shipment credit or packing credit from your bank or from any other bank that offers this facility. Pre-shipment or packing credit is a loan or advance granted by a bank to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment. Should you have any further queries regarding exports of cotton, we will be more than glad to be of assistance.
Response by: Dr. Siddhartha Rajagopal, Executive Director, TEXPROCIL
I want to import dry lead battery scrap from South Sudan (Africa) into Mundra Port in India. Can I import them from this origin? Or import of the product from Sudan is banned? Please advise. (Alok, Director, Xcel Traders Ltd., +91-9997113XXX, firstname.lastname@example.org)
Dear Alok: We assume you want to import waste and scrap of batteries falling under ITC HS Code: 8548. Since the import of products under the said HS Code is restricted you need to apply for grant of an ‘Authorisation’ for import or export of the said items to RA, with a copy to DGFT headquarters in ANF 2M (as prescribed in Handbook of Procedures) along with documents prescribed therein.
Original application along with Treasury Receipt (TR) / Demand Draft needs to be submitted to RA concerned and self-attested copy of same needs to be submitted to DGFT in duplicate along with proof of submission of application to concerned RA. [In case our assumption about the intended export product isn’t exact, please write to us.]
Steven Philip Warner
The Dollar Business
I have been into pharmaceuticals business for the past several years, catering to the domestic market. Going forward, I want to export certain chemicals from India. How do I proceed? (Dilip Venkatrao Jarikote, Coherent Pharmaceuticals, +91-9511661XXX, email@example.com)
Dear Dilip: If you want to start an export-import business, the first thing you need to obtain is an Importer-Exporter Code (IEC) from the DGFT. An IEC is a 10-digit number allotted to a person that is mandatory for undertaking any export/import activities. DGFT only accepts online applications for IEC issuance or modification and requires only three documents: (i) PAN; (ii) Cancelled cheque bearing entity’s pre-printed name or Bank Certificate; and (iii) Digital Photograph (3X3 cm). All you need to ensure is that details filled in the application should match with details in the uploaded documents. Having said that, an online application for IEC however, can only be made using Digital Signature Certificate (DSC; Class II type).
We would request greater details of the chemicals you want to export for us to advice you better. You can also approach your concerned EPCs – Pharmaceutical Export Promotion Council of India (Pharmexcil), Chemical and Allied Export Promotion Council of India (CAPEXIL) and Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL) – to understand if there are any specific requirements with respect to the products or chemicals you want to deal in. Additionally, since you desire to venture into the world of foreign trade, we would also suggest you to take The Dollar Business Export Potential Test to evaluate how ready you are to take the plunge into a world of business that’s wide and exciting! You can find the test on https://www.thedollarbusiness.com. Of course, the test is completely free! In case you have further queries, do write back to us.
Manish K. Pandey
The Dollar Business
I want to export artificial jewellery from India. How do I find overseas buyers for my products? (Ravi Dave, Proprietor, Madhav Exports,
Dear Ravi: We are happy to hear of your decision to head into the world of foreign trade. You can approach your concerned association – Export Promotion Council for Handicrafts (EPCH) – for assistance. Additionally, you can also explore The Dollar Business CONQUER Programme
(You can read more on TDB CONQUER Programme on https://www.thedollarbusiness.com) that gives an in-the-making super successful exporter like you the access to TDB EXIMAPS (https://www.thedollarbusiness.com/exim-maps), the most powerful buyer discovery and competition analysis tool for Indian exporters, which ensures you touch newer highs in global trade. In case you have further queries, do write back to us.
The Dollar Business
Is it safe to get an order for coconut with 100% irrevocable LC at sight from Mauritius? What are the things that I should take into consideration for secure/safe payment and transaction? (Jay, Marketing Manager, Shree Exports, +91-9500077XXX, firstname.lastname@example.org)
Dear Jay: It’s usually safe as an irrevocable Letter of Credit, which once accepted by the seller, cannot be altered or cancelled without the consent of the seller. However, it should be noted that an irrevocable letter of credit is in effect only for a stipulated time period and expires at a pre-determined date. Further, you need to ensure that the documentation of each consignment needs to be as per the conditions of LC at sight otherwise the buyer’s bank has the right to reject payment on any violation of such documentation.
Dr. A. K. Sengupta
Chief Consulting Editor,
The Dollar Business