EXPORT IMPORT

PREOCEDURES & DOCUMENTAION

S.Y.BMS/A
 AVNI
DESIGNS
 PREPARED BY

Aarushi Jadhav -18

Rahul Rane -58
Rohit Pevekar -59
Karan Gorad -61
Milind pednekar -62
 ABOUT AVNI
DESIGNS

 Owner of the company –MR.BHARAT

SEJPAL

 Factory Location-Gujrat

 Incorporation-1986

 Business Type-Exporter/Manufacturer
 Product List
 Handicrafts
 Fashion accessories
 Handbags
 Gloves, scarves, capes
 Hair accessories
 Fans, decorative objects
 Games & toys, home furnishing
products
 PRODUCTION
 Product list

 Nature of company

 Turnover- approx. 2 cores

 ORGANISATION
STRUCTURE

 Independent Export Division:-

- Accounts department.

- Export department

-Packaging department
EXPORT MARKETS

 Italy
 Australia
 USA
 Germany
 Belgium
 Dubai
 Strategies of Export
Marketing

 To select local products

 Strategy in packaging

 Overseas markets as heterogeneous

 Selection of the right sales promotion

schemes

 To promote country’s tradition

Ways of Transport

 Airways

 Marine ways
 Methods of Payment
 Telegraphic Transport
Prepayment or advance payment is a method of payment used in
international or domestic transactions where the buyer pays the
seller in advance before receiving goods or services. It is a very high-
risk method for the importer and with almost no risk for the
exporter. Usually an importer can pay the exporter by cash, T/T,
Western Union or Money Gram or other payments that is agreed by
both parties However, T/T is the most common payment method
that requires the use of cable or telegraph to remit funds. No hard
money transfer is involved in T/T. The order to pay is wired to an
institutions’ cashier to make payment to a company or individual.
Although telegraph is less in use these days, T/T is regarded as the
most convenient means of completing a transaction. T/T does not
necessarily mean that it has to be made in advance to the suppliers.
It can also be made after the goods are received. It depends on
negotiation. The sellers insist for the payment by T/T due to the fact
that the other alternate method i.e. Letter of Credit is expensive for
small transactions. In L/C negotiation charges are high and sellers'
transaction cost goes high. If one contemplates higher risk in paying
by T/T then he can negotiate with the seller for L/C with condition
that all bank charges outside India will be to the L/C opener's
account. In this method the transaction cost will be high but your
point of risk can be covered.
  Direct Payment
Direct Payments are intended to empower service users by allowing
them control and choice over the services they use to meet their
needs. Each person on the scheme is given an amount of money to
be managed by themselves, possibly with the aid of others such as
family or an external advocacy organization. This money can be
used to purchase any service or services that meet the person's
assessed needs. As the money given to the person is given in lieu of
the local authority providing the care, the money remains public
money belonging to the local government who makes the payments.
Users must, therefore, account for the money every step of the way
so the local government can maintain its auditing requirements.
There is however, no requirement for a person to receive the
entirety of their care needs through direct payments; people are free
to mix direct payments for some of their needs with traditional
methods of care provision. Direct Payments can be used to directly
employ a personal assistant (in this case the Direct Payments
recipient may legally be classed as an employer with all the
responsibilities this entails under UK law) or hire care workers from
a private domiciliary care agency. As an alternative to care services,
the recipient may be able to use his or her Direct Payments to fund
other local services that enable their independence within their own
home and community, such as 'meals on wheels', taxi cabs and social
clubs.
  Letter Of Credit
Letters of credit (LC) deal in documents, not goods. The LC could be
irrevocable or revocable. An irrevocable LC cannot be changed
unless both the buyer and seller agree. Whereas in a revocable LC
changes to the LC can be made without the consent of the
beneficiary.
A sight LC means that payment is made immediately to the
beneficiary/ seller/ exporter upon presentation of the correct
documents in the required time frame. A time or date LC will specify
when payment will be made at a future date and upon presentation
of the required documents. Negotiation means the giving of value for
draft and/or document by the bank authorized to negotiate, viz the
nominated bank. Mere examination of the documents and
forwarding the same to the letter of credit issuing bank for
reimbursement, without giving of value / agreed to give, does not
constitute a negotiation.
To receive payment, an exporter or shipper must present the
documents required by the letter of credit. Typically instead of
presenting goods themselves, a document proving the goods were
sent is presented instead. However, the list and form of documents
is open to imagination and negotiation and might contain
requirements to present documents issued by a neutral third party
evidencing the quality of the goods shipped, or their place of origin
or place. Typical types of documents in such contracts might include.
Export Procedure

p
cilm
n
/g
y
u
B
S
e
d
ra
T
Trade Show-Buyer/Buying agencies.
 An Avni design is a well know company who sells their product
outside of the county like Italy, USA, Germany, Belgium, Dubai
etc.
 They organize Trade Show, Exhibition, to sell their product
through agencies.

Select Samples
 They select a sample form this company(Avni Designs)

Send Samples
 Then Avni designs send those samples to those agencies for the
importer.

 Select and place orders

 They select the sample and place the order.

 Post Shipment Payment

 Before receiving goods payment.
 Pricing Strategies
 Avni designs cost per item from 1$ to 40$ as per the
material
 They follow Skimming pricing strategy
- Meaning
- Objectives
- Market coverage
- Promotions
- Tenure of Strategies
- Type of customers
 Strategies of Avni
design

1. To select local products which are suitable for

overseas buyers and to improve its quality and
design to meet requirements of foreign buyers.

2. Strategy in packaging-packaging for export

market must be strong and protective. Avni
designs fulfills three functions – protection
against water and moisture, breakage and
theft.

3. Selection of right sales promotion schmes -

avni organizes the trade fairs, exhibitions,
press advertising which improves the export
preference.
4. To promote country’s tradition – the main
stratergy o f avni is to promote india’s
tradition in foreign countries.
 Ways of transport

 Airways
Avni design transport the goods by airways
from navasheva to u.s.a

 Seaways
Avni design also transport goods through
seaways. In order to protect the cargo from perils
on high sea, Avni design has obtain marine
insurance policy .
 Organization structure

Independent export division

 Accounts department
A large scale exporting organization
dealing in a products always has an
account department.
 Export department
As the export department is created as an
internal department of the organization, it is
called as in –build export department. The
export manager is the head of the export
department and he looks after the export
activities.
 Packaging department
The packaging department packages parts
and pieces for consignee of avni designs.
Pricing strategies

 Avni designs cost per item from 1$

to 40$ as per the material.
 They follow skimming pricing
startegy.
Skimming price is high in early stages

The strategy aims at maximizing profit

margin initially till the market reaches
saturation point.

The exporter can reach only to a limited

market segment, that can afford to pay
high price.

Avni designs promote their product by

exhibitions and trade fairs.
It is a short tenure of strategies

The exporter concentrates only on the

affluent customers.