http://www.scribd.

com/doc/41511810/Project-Report-on-Export-Documentation-and-Procedure-2

http://www.slideshare.net/jihadharb/international-business-environment-presentation

Export Procedure &

Documentation

AT

BAMALWA JEWELS
JAIPUR

-By DHARMVEER SONI

 A PROJECT REPORT

Submitted by

DHARMVEER SONI

in partial fulfillment for the award of the degree

of

BACHELOR OF BUSINESS ADMINISTRATION(BBA)

III YEAR

UNIVERSITY COMMERCE COLLEGE, JAIPUR

RAJASTHAN UNIVERSITY:: JAIPUR 302055

APRIL 2011
 CERTIFICATE BY GUIDE

The undersigned certify that they have read and recommended the

project to the concerned faculty or examiner or department for

the acceptance of the project work titled:

“EXPORT PROCEDURE & DOCUMENTATION AT BAMALWA JEWELS”

It was presented by DHARMVEER SONI in partial fulfillment of the
requirement for the award of a Bachelor of Business
Administration(BBA) III Year Degree.
It is also to certify that he has taken his summer training and
prepared this project under our guidance and supervision.

GUIDE
NAME:
SIGNATURE:

PROPRIETOR
NAME:
SIGNATURE:
SEAL:
 DECLARATION BY STUDENT

I hereby declare that this project work is the result of my

own research and no part of it has been presented for

another degree in this university or elsewhere. I am solely

responsible for any errors in the work.

Signature

DHARMVEER SONI
Bachelor of Business Administration(BBA) III Year
 BONAFIDE CERTIFICATE

Certified that this project report “EXPORT PROCEDURE &

DOCUMENTATION AT BAMALWA JEWELS” is the bonafide work of

DHARMVEER SONI who carried out the project work under my

supervision.

SIGNATURE SIGNATURE

HEAD OF THE DEPARTMENT SUPERVISOR

<<Academic Designation>>

<<Department>> <<Department>>

<<Full address of the Dept & College >> <<Full address of the Dept & College >>
 PROJECT APPROVAL SHEET

DHARMVEER SONI has done the appropriate work related to the

“Export Procedure & Documentation at Bamalwa Jewels” in partial
fulfillment for the award of Bachelor of Business
Administration(BBA) III year of “University Commerce College,
Jaipur” and is being submitted to University Commerce College,
University of Rajasthan, Jaipur.

Supervisor:

External Examiner:

Date:

Place:
 ACKNOWLEDGEMENT

This research would not have been successfully completed without

assistance and contribution of all those who have helped us in
diverse ways:
First and foremost, I render my sincere thanks to almighty God for
his guidance, love, protection and strength given me during the
course of the study
Secondly, my thanks go to my supervisor …………. who despite his
tight academic schedule had time to read my script. I really
appreciate his guidance, comments, valuable
suggestions and patience which enhanced the quality of my work
immensely.
I am heartily thankful to the whole unit of BAMALWA JEWELS for
the warm response they had given me to complete my summer
training. I am also thankful to Mr. GANGARAM CHAUHAN
(GENERAL MANAGER ) for giving me opportunity to undertake this
project in his reputed organization
Also, I render my profound gratitude to my parents for their
support and encouragement.

Finally, my sincere thanks go to all groups and individuals who

assisted me in diverse ways to come out with this project work.
 Table of Contents

- Introduction
- Executive summary
- Statement of objective
- Registration of firm
- Export Procedure
 Documents required
- Modes of payment
- Government incentives for exports
- International Business Environment
- Questionnaire
- Conclusions & Suggestions
- Bibliography
- Rough Work
 Introduction
Myself DHARMVEER SONI. I am a student of BBA Part III. And
we have been given a project to be made on some company by
working under it. And I have chosen a reputed jewellery export
proprietorship firm BAMALWA JEWELS for the same. It has been a
great experience working and learning under this firm. I worked here
for 2 months from 1 january 2011- 28 february 2011 and recorded
all sort of facts regarding manufacturing and export of jewellery
under the guidance and supervision of the manager of the firm.

- HISTORY

BAMALWA JEWELS is a manufacturing and export oriented

jewellery firm. It is a sole proprietorship firm which has been
established in the year 2006. Before that, the owner Mr. Jai
Hanuman Bamalwa build his reputation under his own name and he
has been working in this field since last 20 years. Earlier he used to
manufacture the jewellery and supply it locally in the markets of
New Delhi and Jaipur until he realized that the product which he
manufactures has an international demands as well. So on the
suggestion of then industrial minister of rajasthan, he proposed to
establish an export-oriented firm which he named BAMALWA
JEWELS in the year 2006.
- OWNER PROFILE

Jai Hanuman Bamalwa is a renowned jeweller in jaipur working

past 35 years in the field. Currently he’s 51 and still progressing
with his business.
Its been 10 years since he migrated to jaipur with his
family. Earlier he used to live in a village named Sri Dungargarh
(near Bikaner) where he started working at the age of 16.
Though he hasn’t got much education qualifications which even
is not an important trait for a businessman( I hope everybody
knows the educational qualifications of big businessmen like
Dhirubhai Ambani) but he had a sharp mind and creative skills
and motivation to do something and be someone in his life
which made him struggle and work hard and being someone
who he is, today. He was born and brought up in a relatively
low middle class family, so inspired from his own financial
position, he worked hard and made a few jewellery pieces by
borrowing money from people and took it to New Delhi and he
made a good profit in his first trip. Then started his road to
success, and he expanded his volume and started making more
money and repaid all his loans and started with his own money.
Hes an hardworking workaholic and a true entrepreneur
and is very innovative and creative.
Hes a very social person and actively takes part in the
activities of the society and contributes to it.
Hes a very religious person and is fond of listening to
classical music.
 - COMPANY PROFILE
BAMALWA JEWELS is a sole proprietorship firm established in
2006. It is a manufacturing and export oriented firm.
It is established in Special Economic Zone, Jaipur under which
exporters get the privilege of tax free revenue from export i.e. 100 %
off from income tax and other taxes. Only the units established in
SEZ gets such privilege. We will be discussing other related details
under EXPORT PROCEDURE.

Product Profile

Manufacturers and Exporters of Kundan Polki Meena Diamond

and Gold Jewellery
Traders and Exporters of Antique Diamond Jewellery
Manufactures jadau uncut diamond jewellery

Registered Office

Bamalwa Jewels
103, Akshat enclave, Kanti Chand Road, Banipark
Jaipur, Rajasthan 302 016
Ph +91-141-4109428

Export Unit

Bamalwa Jewels
H-63, Special Economic Zone, Phase-2, RIICO
Sitapura Industrial Area, Jaipur
Rajasthan 302 022
M +91- 982 802 2598
 - AREAS OF BUSINESS

Manufacturing of uncut diampond jewellery and supplyin it in local

markets which are
- New Delhi
- Jaipur
- Mumbai
- Kolkata

Maufacturing of diamond and antique jewellery and gold jewellery

and exporting it to
- United Arab Emirates(UAE) including Dubai, Sharjah, Abu Dhabi
- Kingdom of Bahrain including Manama
- Hong Kong
- Unites States of America(USA)

Trading of kundan meena jewellery in the local market of Jaipur and

Bikaner
 EXECUTIVE SUMMARY
The present study is a comprehensive study of EXPORT
DOCUMENTATION AND PROCEDURE . The research work is done in
collaboration with BAMALWA JEWELS to assess the
overall export procedure & documentation. On concentrating the
objective of project, the maximum information is summed up
sequentially. The executive summary of the study describes...

Objective

The main objective of the study is to formulate the overall

procedure of export orders say ‘how
to export’, documentation, modes of payment & incentives from
Govt. of LUCKY EXPORT.

Research Methodology

Research comprises defining and redefining problems. Research

purpose is to discover answer to
question through the procedure of scientific procedure. Interviews
and discussion with the
supervisors and officials to get the root of the pre-determined
objective and in order to outline
the ‘a to z’ steps of processing export order.
Findings & Recommendations

On the execution of the objective of study, it might be conclude that

processing of export order
can be a tedious and costly activity. A careful planning and
implementation of appropriate
procedure can reduce time and cost drastically. A fair
documentation not only reduces the threats
of frauds, bottlenecks and risks but also enhances the business
relationship between Exporters,
Importers & Governments in the whole world
 STATEMENT OF OBJECTIVES
The complexity of business operations greatly accentuate as
businessmen cross the
national boundaries. A lot of formalities and modalities of several
organizations have to be
compiled to and as error can create bottle necks in the free flow of
goods, documents,
information and payments.
Documentation is definitely one of the prime specialized functions of
international
business. The documents safeguard the interests of  Exporter,
Importer, Banks, Governments,
Transport Agencies, Insurance Agencies and Inspection Agencies.

Main Objective of the Study

The main objective of the training was to study the systematic

export procedure & documentation of a reputed export house say
BAMALWA JEWELS to overcome any kind of error, bottleneck, frauds
and mistake for the awareness and implementation of standardized
rule- regulations & documentation to contribute the integration of
International Business up to any extent.

Sub Objectives of the Study

The sub objectives of the study were:
• To study the department wise functions & sequential
documentation for various operations in export orders adopted by
BAMALWA JEWELS
• To study the standard modes of payment in export-import.
• To identify the incentives, discounts & duty drawbacks to
exporters by the Government
 REGISTRATION OF FIRM
- REGISTRATION

Registration with Reserve Bank Of India:

No longer required. Prior to 1.1.1997 it was compulsory for
every exporter to obtain an exporters' code number from the
Reserve Bank of India before engaging in export. This has since
been dispensed with and registration with the licensing
authorities is sufficient before commencing export or import.

Registration with Regional Licensing: Authorities

(obtaining IEC Code Number)

The Customs Authorities will not allow you to import or export

goods into or from India unless you hold a valid IEC number. For
obtaining IEC number you should apply to Regional Licensing
Authority in duplicate in the prescribed form. Before applying
for IEC number it is necessary to open a bank account in the
name of your company / firm with any commercial bank
authorised to deal in foreign exchange. The duly signed
application form should be supported by the following
documents:

- Bank Receipt (in duplicates)/Demand Draft for payment of the

fee of Rs. 1,000/-.
- Certificate from the Banker of the applicant firm as per
Annexure 1 to the form
- Two copies of Passport size photographs of the applicant duly
attested by the banker to the applicants.
- A copy of Permanent Account Number issued by Income Tax
Authorities. If PAN has not been allotted, a copy of application
of PAN submitted to Income Tax Authorities.
- In case the application is signed by an authorised signatory, a
copy of the letter of legal authority may be furnished.
- If there is any non-resident interest in the firm and NRI
investment is to be made with repatriation benefits, a simple
declaration indicating whether it is held with the
general/specific permission of the RBI on the letter head of the
firm should be furnished. In case of specific approval, a copy
may also be furnished.
- Declaration by the applicant that the
proprietors/partners/directors of the applicant firm/company,
as the case may be, are not associated as
proprietor/partners/directors with any other firm/company
which has been caution-listed by the RBI. Where the applicant
is so associated with a caution-listed firm/company the IEC No.
is allotted with a condition that he can export only with the
prior approval of the RBI.
- The Regional Licensing Authority concerned will on merits
grant an IEC number to the applicant. The number should
normally be given within 3 days provided the application is
complete in all respects and is accompanied by the prescribed
documents. An IEC number allotted to an applicant shall be
valid for all its branches/divisions as indicated on the IEC
number.

Registration With Export Promotion Council 

 In order to enable you to obtain benefits/concession under the
export-import policy, you are required to register yourself with
an appropriate export promotion agency by obtaining
registration-cum- membership certificate.

For this purpose you should apply in the prescribed form, to the
Export Promotion Council relating to your main line of business.

However, if the export is such that it is not covered by any EPC,

RCMC in respect thereof may be obtained from the Regional
Licensing Authority concerned.
An application for registration should be accompanied by a self
certified copy of the Importer-Exporter code number issued by the
Regional Licensing Authority concerned and bank certificate in
support of the applicant's financial soundness. In case an exporter
desires to get registration as a manufacturer exporter, he should
furnish evidence to that effect. In the case of a manufacturer
exporter the licensing authority may seek copy of registration with
SSI/any other sponsoring authority in addition to the application in
the prescribed form for the Import Export Code Number.

If the application for registration is granted, the EPC or FIEO

shall issue the RCMC indicating the status of the applicant as
merchant exporter or manufacturer exporter. The RCMC shall be
valid for five years ending 31st March of the licensing year. The
certificate shall be deemed to be valid from 1st April of the licensing
year in which it was issued.
 Registration With Sales Tax Authorities:

Goods which are to be shipped out of the country for export

are eligible for exemption from both Sales Tax and Central Sales Tax.
For this purpose, you should get yourself registered with the Sales
Tax Authority of your state after following the procedure prescribed
under the Sales Tax Act applicable to your State.
 EXPORT PROCEDURE
Before discussing the export procedure, lets know the answers of a
few questions:

1. What is the meaning of Export?

A. Export means taking goods out of India to a place outside
India (Section 2(18)) of the Customs Act 1962).
2. What is the meaning of Export Procedure?
A. Export procedure includes series of steps required to export the
goods from a country to another country.
3. Is there any difference in procedure of export through SEZ and
outside SEZ?
A. Yes, there is a slight difference in both the procedures. While
exporting through SEZ,  the original copy of the Shipping Bill is
detached by the noting clerk and no export duty is payable. And
while exporting through outside SEZ, original copy of shipping
bill is detached by cash department after collecting duty and
making suitable endorsement on all the copies of shipping bill.

We will be discussing the export procedure through SEZ as we

have our unit established in SEZ.

The procedure for export from Special Economic Zone through

seaports or airports or Inland Container Depot or Container Freight
Station or Land Customs Station or by Post or by Courier or by
Personal Carriage, as the case may be, shall be as under:

 TABLE SHOWING PROCEDURE OF EXPORT

Registration  

 
  Processing of
shipping bill

 
  Arrival of
goods at docks

 
 

 
 
Custom Examination
of Export cargo

 
 
 

 
  
Amendments

 
 
 
 

 
Loading of Goods in
Containers and Exported

DOCUMENTS REQUIRED

Certain documentation takes place while exporting from India.

Special documents may be required depending on the type of
product or destination. Certain export products may require a
quality control inspection certificate from the Export Inspection
Agency.
Shipping Bill/ Bill of Export is the main document required by
the Customs Authority for allowing shipment. Usually the Shipping
Bill is of four types and the major distinction lies with regard to the
goods being subject to certain conditions which are mentioned
below:
  Export duty/ cess
 Free of duty/ cess
 Entitlement of duty drawback
 Entitlement of credit of duty under DEPB Scheme
 Re-export of imported goods

The following are the documents required for the processing

of the Shipping Bill:
An Airway Bill
Air freight shipments require Airway bills, which can never be
made in negotiable form. Airway bills are shipper-specific (i.e.
USPS, Fed-Ex,UPS, DHL, etc).

A Bill of Lading
A contract between the owner of the goods and the carrier (as
with domestic shipments). For vessels, there are two types: a
straight bill of lading, which is non-negotiable, and a negotiable or
shipper's order bill of lading. The latter can be bought, sold, or
traded while the goods are in transit. The customer usually needs
an original as proof of ownership to take possession of the goods.

4 Copies of Commercial Invoice

A bill for the goods from the seller to the buyer. These invoices are
often used by governments to determine the true value of goods
when assessing customs duties. Governments that use the
commercial invoice to control imports will often specify its form,
content, number of copies, language to be used, and other
characteristics .

4 Copies of Export Packing List

Considerably more detailed and informative than a standard
domestic packing list, it lists seller, buyer, shipper, invoice number,
date of shipment, mode of transport, carrier, and itemizes
quantity, description, the type of package, such as a box, crate,
drum, or carton, the quantity of packages, total net and gross
weight (in kilograms), package marks, and dimensions, if
appropriate. Both commercial stationers and freight forwarders
carry packing list forms. A packing list may serve as conforming
document. It is not a substitute for a commercial invoice.

GR forms (in duplicate) for shipment to all the countries.

Contract, L/C, Purchase Order of the overseas buyer.
Inspection/ Examination Certificate.

The formats presented for the Shipping Bill are as given below:

 White Shipping Bill in triplicate for export of duty free of

goods.
 Green Shipping Bill in quadruplicate for the export of goods
which are under claim for duty drawback.
 Yellow Shipping Bill in triplicate for the export of dutiable
goods.
 Blue Shipping Bill in 7 copies for exports under the DEPB
scheme.
 PROCEDURE

In India export procedure is a complex and time taking

procedure that every exporter faces in his export business. Physical
control is still the basis of custom clearance in India where each
consignment is manually examined in order to impose various types
of export duties. High import tariffs and multiplicity of exemptions
and export promotion schemes also contribute in complicating the
documentation and procedures. So, a proper knowledge of the
custom rules and regulation becomes important for the exporter.
For clearance of export goods, the exporter or export agent has to
undertake the following formalities:

Registration

Any exporter who wants to export his good need to obtain PAN
based Business Identification Number (BIN) from the Directorate
General of Foreign Trade prior to filing of shipping bill for clearance
of export goods. The exporters must also register themselves to the
authorised foreign exchange dealer code and open a current
account in the designated bank for credit of any drawback incentive.

Registration in the case of export under export promotion

schemes: 
All the exporters intending to export under the export promotion
scheme need to get their licences / DEEC book etc.

Processing of Shipping Bill 

The shipping bills or bills of export are required to be filled in

the format as prescribed in the Shipping Bill and Bill of Export (Form)
regulations, 1991. An exporter need to apply different forms of
shipping bill/ bill of export for export of duty free goods, export of
dutiable goods and export under drawback etc. So as to generate an
appropriate shipping bill which is to be duly filled along with other
documents of export which are mentioned above. A custom
inspecting officer then checks all the documents along with shipping
bill which is processed for further proceedings. In most of the cases,
a Shipping Bill is processed by the system on the basis of
declarations made by the exporters without any human
intervention. Sometimes the Shipping Bill is also processed on
screen by the Customs Officer.

Arrival of Goods at Docks:

On the basis of examination and inspection, goods are allowed

enter into the Dock. At this stage the port authorities check the
quantity of the goods with the documents.

Customs Examination of Export Cargo:

 Customs Officer may verify the quantity of the goods actually
received and enter into the system and thereafter mark the
Electronic Shipping Bill and also hand over all original documents to
the Dock Appraiser of the Dock who may assign a Customs Officer
for the examination and intimate the officers’ name and the
packages to be examined, if any, on the check list and return it to
the exporter or his agent.
The Customs Officer may inspect/examine the shipment along
with the Dock Appraiser. The Customs Officer enters the
examination report in the system. He then marks the Electronic Bill
along with all original documents and check list to the Dock
Appraiser. If the Dock Appraiser is satisfied that the particulars
entered in the system conform to the description given in the
original documents and as seen in the physical examination, he may
proceed to allow "let export" for the shipment and inform the
exporter or his agent.

Amendments:

Any correction/amendments in the check list generated after

filing of declaration can be made at the service center, if the
documents have not yet been submitted in the system and the
shipping bill number has not been generated. In situations, where
corrections are required to be made after the generation of the
shipping bill number or after the goods have been brought into the
Export Dock, amendments is carried out in the following manners.
 1. The goods have not yet been allowed "let export" amendments
may be permitted by the Assistant Commissioner (Exports).
2.  Where the "Let Export" order has already been given,
amendments may be permitted only by the Additional/Joint
Commissioner, Custom House, in charge of export section.

In both the cases, after the permission for amendments has been
granted, the Assistant Commissioner / Deputy Commissioner
(Export) may approve the amendments on the system on behalf of
the Additional /Joint Commissioner. Where the print out of the
Shipping Bill has already been generated, the exporter may first
surrender all copies of the shipping bill to the Dock Appraiser for
cancellation before amendment is approved on the system.

Loading of Goods in Containers and Exported:

The exporter or export agent hand over the exporter’s copy of the
shipping bill signed by the Appraiser “Let Export" to the steamer
agent. The agent then approaches the proper officer for allowing the
shipment. The Customs Preventive Officer supervising the loading of
container and general cargo in to the vessel may give "Shipped on
Board" approval on the exporter’s copy of the shipping bill. Then the
goods are exported.

PARTIES INVOLVED IN EXPORTING

Exports involve coordinated effects of a large numbers of

interdependent organizations. The
main parties which are involved in export process are :

- The Exporter
- The Foreign Buyer
- The Negotiation Bank
 - The Reserve Bank of India
- Director General of Foreign Trade
- The Collector of Customs
- The Port Commissioner
- Clearing & Forwarding Agents.

Besides these, other parties may also be associated depending on the

nature of commodity
and rules guiding the export of the same. Examples of these bodies
can be Inspection Agencies,
Export Promotion Council, Concor, Ministry of Agriculture etc

MODES OF PAYMENT
Managerial functions tend to become more and more
complicated as the operations of a company cross the boundaries of
the nation in which it is operating. Exports finance is no exception to
this generalization. The risk dimension accentuates significantly as
soon as the goods are sold to a buyer outside the country. Some of
the risk factors are inadequate personal knowledge about the
foreign buyers, possible restrictions on transfer of funds from
importer’s country, fluctuations in rates of exchange, obstacles to
payments for reasons such as wars, political disturbances payment
delays and a lot of other socio political factors. It may be
appreciated that these risk factors originate out of one common
reason i.e. the business operations are done in different of business
environment.
The final indicator of success any business is its financial
viability and in exports the inflow of funds is from across the
borders. So, an export transaction is deemed to be complete only
after the final payment has been received. The payment is
influenced by several factors such as government rules and
practices, bankers, Om Policies, importer’s financial position and the
prevailing trade practices in the industry. The payment can influence
other factors of marketing mix, price being the most significantly
affected.

The exports managers must take the following factors into

account while evolving their payment policies.
a)The institutional aspect – the operations of the mechanism and
credit facibilities.
b)Foreign exchange and its relation to export terms and receipt of
the export proceeds.
c)The methods of receiving payments.
d) Other factors-
i)Exporter’s knowledge of the buyer.
ii)Buyer’s financial position.
iii)Security of payment and risk factors.
iv)Time taken for payment

Methods of Payment in Exports

 Due to the significance of risks in exports payments, the
methods of payment can be classified into following categories
depending upon the risks associated:
- Payment in Advance
- Open Account
- Documentary Bills
- Shipment on Consignment Basis
- Documentary Credit under Letter of Credit

GOVERNMENT INCENTIVES FOR EXPORTS

Benefits for Export House/Trading House/Star Trading

House/Super Star Trading House:

a)Off shore trading /merchanting with advance payment to

suppliers.
b)Membership of Policymaking open bodies and business
delegations.
c)Self declared pass scheme.
d)Duty exemption scheme with legal undertaking instead of B/C.
e)E.P.C.G. scheme with legal undertaking instead of B/G (Bank
Guarantee).
f)Import of cars as one time facility once in five years against their
valid status.
g)No prior approval required for opening offices abroad.
h)Foreign equity can be raised up to 51%.
i)Marketing development assistance through FIEO.
j)Higher Entitlements for foreign exchange for foreign travel.
k)EEFC funds utilization for setting up offices abroad.

Duty Drawback

The duties suffered on the raw material used in the final export
product, whether imported or
procured indigenously, are refunded to the exporter through duty
drawback scheme.
The cost/duty figures supplied by all industries are used arrive at
duty drawback rates,
which are published as all industry rates. In case exporter is not
satisfied with this rate, he has an
option of getting a special band rate.The current scheme does not
allow drawback, if the
exporter has already audited MODVAT credit

Duly Exemption Scheme

I. DEEC
II. DEPB

I. Duty Exemption Entitlement Certificate (DEEC): 

Under this scheme,exporter is given license to import raw
 material without payment of duty. This license is called an Advance
License. The transaction under the license as to be logged by
customs in a book called DEEC book. This book has two separate
parts for exports and imports. The exporter has to undertake an
export obligation in terms of value and quantity. The licensing
authority, Director General of Foreign Trade, monitors the export
obligation.
The license could be two types:
]
- Quantity based Advance License
- Value based Advance License

The exporter has twelve months time to fulfill export obligation.

Non-fulfillment of the obligation attracts the duty waired easier on
the imports of raw material plus interest plus penalties.

II. Duty Entitlement Pass Book Scheme (DEPB):

A manufacturer- exporter or an exporter granted an

EH/TH/STH/SSTH certificate shall be eligible to avail the benefits of
this scheme.

This scheme shall apply only for the export of the product where
standard input-output norms have been published in hand book of
procedures.

Pass book shall be issued quantity based only.

The export goods shall not be eligible for draw backs on the inputs
for which credit is taken in pass book.
Pass book will be valid for a period of two years from the date of
issue.
In pass book scheme exporter have to first export the goods and get
the credit in pass book then one can import utilizing the credit.

Exports Promotion Capital Goods Scheme (EPCG Scheme)

The scheme allows import of new capital goods as well as

computer software systems at 5% customs duty subject to export
obligation equivalent to 5 times CIF value of capital goods to be
fulfilled over a periods of 8 years reckoned from the date of issuance
of license over a period of 8 years. However, in export of EPCG
license for Rs.100 crore or over, the same export obligation shall be
required to be fulfilled over a period of 12 years. The capital goods
shall include jigs, fixtures, dies and molded spares may also be
imported under the scheme up to 20% of CIF value of capital goods.
A person holding an EPCG license may source the capital goods from
domestic manufacturers supplying capital goods to EPCG license
holders shall be eligible for deemed export benefit.

Period from the date of Proportion of total export

Issuance of license obligation

1) Block of 1st & 2nd year Nil

2) Block of 3rd & 4th year 15%
3) Block of 5th & 6th year 35%
4) Block of 7th & 8th year 50%.
However, the export obligation of particular block of year may be set
off by the excess
exports made in the proceeding block of the year.
In respect of license of Rs.100 crore or more, the export obligation
shall be fulfilled over
a period of 12 years in the following proportions:-

Period from the date of issue Proportion of total export

Of license obligation

1) Block of 1st & 5th year Nil

2) Block of 6th & 8th year 15%
3) Block of 9th & 10th year 35%
4) Block of 11th & 12th year 50%.

An application for grant of an EPCG license shall be made in

APPENDIX 9 of the Handbook of procedure along with documents
prescribed there in.

The licensee holder shall submit a yearly report on progress made in

fulfillment of export obligation in Appendix 9A & 9B of Handbook of
procedures, duly certified by Chartered Accountant to the
concerned licensing authority

INTERNATIONAL BUSINESS ENVIRONMENT

INTRODUCTION

International business is defined as organization that buys and/or

sells goods and services across two or more national boundaries,
even if management is located in a single country.
One of the most dramatic and significant world trends in the past
two decades has been the rapid, sustained growth of international
business. Markets have become truly global for most goods, many
services, and especially for financial instruments of all types. World
product trade has expanded by more than 6 percent a year since
1950, which is more than 50 percent faster than growth of output
the most dramatic increase in globalization, has occurred in financial
markets. In the global forex markets, billions of dollars are
transacted each day, of which more than 90 percent represent
financial transactions unrelated to trade or investment. Much of this
activity takes place in the so-called Euromarkets, markets outside
the country whose currency is used.