“It has been proven through studies by the World Bank and others that companies participating in international trade are more competitive.”
International trade refers to Import as well as export both.
Export where opens up the global market for our products, import creates an expanded market place for procurement of raw materials, employee workforce and capital equipment as well.
In today’s era of globalisation where whole world is a single market place, our product should compete globally otherwise it can not be sold in domestic market even.
Export transaction simply means going global, where you are not selling your product only in domestic market but outside boundaries even. There are some product categories in which India specializes like leather products, Pharmaceuticals, Precious stones & metals, Automobiles, Meat, Mangoes, textiles, cereals etc. these goods when sold outside India, not only business houses earn more but foreign exchange reserve of India also increases and thereby reduces trade deficit too.
Similarly import of goods as well as services not only reduces cost of production in certain cases but also improve quality and efficiency of our products. There are certain process for which technologically contemporary machinery is not available in India. In that case again import transaction need to be undertaken so that products with global competence can be produced economically.
International trade is of national importance too from viewpoint of recognition in global market, inflow of foreign exchange in India and maintenance of trade balance
The Government of India prepares and publish FOREIGN TRADE POLICY for every 05 years period. Foreign trade policies deal with regularisation of foreign trade and also announces rules and according procedures therein.
The foremost Important thing for Import Export transaction is
Import Export Code
IEC is mandatorily required to make export-import of goods but in case of services it is not mandatory, however to obtain benefits of schemes it is required then.
As earlier said also that export transaction is from national viewpoint even as it will bring foreign exchange into India which will enhances the foreign currency reserve as well as reduces trade deficit also, most of the export transactions are duty free with zero GST levy too.
GST benefits for Export transactions
DGFT is the apex institution for facilitation as well as regularisation of international trade and FTP is bible for understanding and transacting export as well as import.
To boost export, Government announces several schemes;
- Merchandise Export Incentive Schemes (MEIS)
- Services Export Incentive Schemes (SEIS)
- Advance Authorisation
- Duty Drawback Scheme
- Export Promotion capital Goods Scheme (EPCGS)
- Advance Pricing SChemes
International trade is a specialised area where understanding of various aspects like MFN Concept ( Most favoured Nation Concept), Free trade Agreements, SAFTA Agreements, open category Goods, licenced goods as well as import Quota, National tariff line, INCOTERM 2011, HS Code, ECGS etc. is important to affectively manage your import export business
International Trade Advisory
Apart form this Export import documentation is also necessary from viewpoint of successful execution of transaction otherwise either goods will not reach to its destination or there will be difficulty in realisation of foreign exchange.
Documentation in relation to International Trade