1. PROJECT REPORT
ON
―EXPORT PROCEDURE IN INTERNATIONAL MARKET‖ OF
SUBMITTED BY- SUBMITTED TO-
MOHD SHARIQ Ms. DEEPIKA DHAL
MBA-II SEM LECTURER
10903091 [LIM]
RT1902 A-25
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2. DECLARATION
I Mohd Shariq hereby declare that the summer project report titled ―EXPORT PROCEDURE
IN INTERNATIONAL MARKET” written and submitted to LOVELY PROFESSIONAL
UNIVERSITY by me is my own and its equal copy has not been reproduced to any other
institution/university or published anywhere else.
I understand that such reproducing is liable for punishment in any way the university deem
fit.
Place: Moradabad Mohd Shariq
Date: Regd. No.-10903091
MBA
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3. COMPANY GUIDE CERTIFICATE
This is to certify that the summer project titled “Export procedure in international market”
at ―AKBAR CORPORATION LIMITED ―is an original work of Md. Shariq , student of
Lovely Institute of Management, Phagwara and is being submitted for partial fulfillment of
the award of the Master of Business Administration (MBA) degree of Lovely Professional
University, Phagwara. The final compilation of the report was also done under my guidance
and it has not been submitted earlier to anywhere else.
Place: Moradabad Mohd Shariq
Date:3AUG-2010 Regd. No. - 10903090
MBA
MR- S.K.MAHESHWARI (EXPORT-MANAGER) OF ACL
Name & Signature of the guide
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4. CERTIFICATE OF THE INSTITUTE GUIDE
This is to certify that the project titled ―‖export procedure in international market‖ is an original work
of Mr.Mohd Shariq bearing University Registration Number 10903091 a student of Lovely
Institute of Management, Phagwara and is being submitted in partial fulfilment of the requirements
for the award of the degree of Master of Business Administration of Lovely Professional University,
Phagwara. The summer project report has not been submitted earlier to this University or to any other
University / Institution for the fulfilment of the requirement of a course of study.
.
Date: 23 AUG-2010 Ms.DEEPIKA DHAL
Name and signature of the guide
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5. Acknowledgement
The journey of success is not completed without proper support and guidance —it is often
said. I realized it even better during my summer internship program. I may not have come
this far without help, guidance and support of certain people who acted as guides, along the
way.
I express my deepest and most sincere thanks to my Project Guide “Mr. S.K. Maheswari‖
Recruitment and Export Manager of Akbar Corporation Limited Moradabad. After
interacting with him, I learnt few tricks of professional management and I am sure the
knowledge imbibed here will go a long way in enriching my career. I express my thanks to
my Faculty Guide Ms.DEEPIKA DHAL. The project could not be completed without his
able support and guidance.
I take this opportunity to thank all senior executives and every associate of ACL without their
cooperation I would not have been able to complete this project.
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6. PREFACE
Master of business Administration is a course, which combines both theory and its
applications as its contents of study in the field of management. As part and parcel of this
course, every aspirant has to undergo an ‗in – company training‘ in an organization. The
purpose of this training is to expose the student of management sciences with real life
situations existing in the organization and to provide an insight into the various functions who
can visualize things what they have been taught in classrooms. Actually, it is the life force of
management. It is in practical training that the effectiveness of management itself is realized.
I was fortunate enough to do my project in ―AKBAR CORPORATION LTD‖.
As a complementary to training, every trainee has to prepare and submit a report on the
working of the organization. This report is in continuation of that tradition. When I went for
training in ACL MORADABAD. And I convert my theoretical knowledge into practical
knowledge. I got lot of knowledge about my topic and I studied on project. It is an attempt to
present an account of practical knowledge and observations gathered during the training.
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7. EXECUTIVE SUMMARY
To study my topic on export procedure in international market at
AKBAR CORPORATION LIMITED MORADABAD.
Market scheme on sales are an important aspect of marketing. Organization followed the
different market scheme on sales in order to boost the sales volume.
On 14th of June I started my project under the guidance of Mr.S.K.Maheshwari Export
manager and Mr.Naushad Ali finance manager and Accountant in dipty gunj Moradabad. I
have been allocated many work in organization like as export procedure and what import
material for product.
Market Area of export:
 Hong Kong,
 Korea,
 Western Europe,
 South America
 Middle East
 And worldwide
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8. TABEL OF CONTENTS-:
 INTRODUCTION OF AKBAR CORPORATION LTD. (ACL)
 MANEGMENT OF COMPANY
 BOARD OF DIRECTOR
 HIERARCHY OF THE COMPANY
 QULITY POLICIES OF COMPANY
 EXPORT ORIENTED UNIT STATUS OF THE COMPANY
 COMPANY REGISTRATION WITH EXPORT PROMOTION COUNCIL OF
INDIA
 QUALITY CERTIFICATE (ISO-9001 - 2000)
 GREEN CARD HOLDER
 IMPORT /EXPORT CODE (IEC)
 LETTER OF PERMISSION (LOP)
 BOND-17
 EXPORT OBLIGATION
 FOREIGN TRADE POLICY
 BANKERS OF THE COMPANY
 DOCUMENTATION
 PAYMENTS TERMS
 FORM FOR MAKING OUTWORD FOREIGN REMITTANCE
 MAJOR EXPORT MARKET OF ACL
 HOW TO EXPORT IN INTERNATIONAL MARKET
 PRELIMINARIES STARTING EXPORT BUSINESS
 CONCLUSION
 BIBLIOGRAPHY
 REFERENCES
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9. INTRODUCTION
Our approach:
Since the Akbar Corporation Ltd was established, it has been the objective of all the
ACL staff to provide the finest furniture in the market both in terms of design and quality.
We sought to combine contemporary design and modern day production techniques with
the furniture making skills of our craftsmen. Our constant aim is to understand the
markets in which we operate and to provide the services to support our clients. Innovation
and expertise are at the heart of Akbar Corporation Ltd.
Quality:
We build on quality through excellence in design and attention to detail in
manufacturing. Our quality extends to every part of every piece. Quality is controlled at
every stage, right from the purchases, storage, cutting, manufacturing, finishing and
packaging.
We unite our expertise with our highly skilled traditional craftsmen and the finest
hardwoods to produce a collection of handcrafted contemporary classics that will last for
generations.
One can discover endless outlets for self-expression in our collection. We combine
understated elegance with high standards of finish and comfort.
Material:
We have a deep affinity for solid wood. We enjoy working with a material featuring
sensuous highlights, such as grain and a variety of colors, which instills our furniture with
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inherent individuality. Every piece made by us is available in European oak, Rock maple
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and Indian rosewood.
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10. We have experts to select and buy quality raw material. It is our company's policy to
ensure that all wood used in the production of our furniture is sourced from sustainable
resources. This guarantees that both, wildlife and indeed the forest and plantations
themselves maintain the environmental balance so important to the exporting countries.
Welfare:
We are also committed to looking after the welfare of our workers, all of who are
provided with new housing on our site. We have many benefit and incentive schemes
available for our craftsmen, whose skills we consider to be our most valuable asset.
Design and Development:
We have regular arrangements for research and development of designs and material.
Well- known international designers design our furniture and all our designs are
copyrighted.
Machinery & Technical Development:
The Company is equipped with all the best German machines, for the production. We use
our skills in amelioration with the technical German collaboration and hence manufacture
the furniture, which, stands out from the crowd with an understated and relaxed sense of
style.
Unique Appeal:
When we bring together our straightforward approach to design with a material that
gives every piece a singular character, our furniture displays a unique and unrivalled
appeal.
" Our commitment to quality and enthusiasm for learning and teaching new skills is
without compromise. The care with which design innovation and manufacturing expertise
are combined in the company's operations and philosophy make it unique and a pleasure
to work with "
Our constant aim is to understand the markets in which we operate and to provide the
services to support our clients. Innovation and expertise are at the heart of Akbar
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Corporation Ltd.
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11. We build on quality through excellence in design and attention to detail in manufacturing.
Our quality extends to every part of every piece. Quality is controlled at every stage, right
from the purchases, storage, cutting, manufacturing, finishing and packaging.
We unite our expertise with our highly skilled traditional craftsmen and the finest hardwoods
to produce a collection of handcrafted contemporary classics that will last for generations.
We have a deep affinity for solid wood. We enjoy working with a material featuring sensuous
highlights, such as grain and a variety of colors, which instills our furniture with inherent
individuality. Every piece made by us is available in European oak, Rock maple and Indian
rosewood.
We have experts to select and buy quality raw material. It is our company's policy to ensure
that all wood used in the production of our furniture is sourced from sustainable resources.
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12. MANAGEMENT OF THE COMPANY-
Company is working under the dynamic leadership of Mr. Akbar Qayyum, Chairman &
Managing Director. Mr. Akbar Qayyum is having experience of around 30 years in
international business and one of the pioneer in the field of export from Moradabad.
Day to day functions have been taken care by his son and Director of the Company Mr.
Adnan Akbar Qayyum who is possessing professional qualification from North Carolina
University, U.S.A.
Company is having well qualified senior management team, consists of Export Manager,
Finance Manager, HRD Manager, Purchase Manager etc.
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13. BOARD OF DIRECTORS
There are three board of director in Akbar Corporation Limited.
 Mr Akbar Quayyum
 Mrs Afsari Quayyum
 Mr Adnan Quayyum
HIERARCHY OF THE COMPANY
MD/DIRECTOR
PRODUCTION MANAGER MARKETING MANAGER FINANCE MANAGER
SUPERVISOR EXPORT/IMPORT EXECUTIVE ACCOUNTANT
FOREMAN
SKILL WR UNSKILL WR
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14. QUALITY POLICIES OF THE COMPANY-
ACL is leading player in international market and for last three decades company is surviving
only on the base of its quality. Company always give emphasis on quality parameters.
Company is having three tier quality checks for its products:
1. As soon as company received raw material in unfinished shapes, their quality
controller check each and every piece for the level, leakage etc.
2. As soon as the goods reach in the finishing section a different quality controller again
check all the possible defects in the products
3. After finishing and before packing each and every piece has been checked under the
supervision of Quality Manager.
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15. Akbar Corporation Ltd., (100% E.O.U.)
EXPORT ORIENTED UNITS -
The Export Oriented Units (EOUs) scheme, introduced in early 1981, is complementary to
the SEZ scheme. It adopts the same production regime but offers a wide option in locations
with reference to factors like source of raw materials, ports of export, hinterland facilities,
availability of technological skills, existence of an industrial base and the need for a larger
area of land for the project. As on 31st December 2005, 1924 units are in operation under the
EOU scheme.
Objectives of the Export oriented unit:
The main objectives of the EOU scheme is to increase exports, earn foreign exchange to the
country, transfer of latest technologies stimulate direct foreign investment and to generate
additional employment.
Major Sectors in EOUs:
 GRANITE
 TEXTILES / GARMENTS
 FOOD PROCESSING
 CHEMICALS
 COMPUTER SOFTWARE
 COFFEE
 PHARMACEUTICALS
 GEM & JEWELLERY
 ENGINEERING GOODS
 ELECTRICAL & ELECTRONICS
 AQUA & PEARL CULTURE
 HANDICRAFT

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16. Export from EOU
Exports from EOUs during 2004-2005 were of the order of Rs.36806.17 crores as compared
to the export of Rs.28827.58 crores achieved during 2003-2004, registering a growth of
27.68%.
EOU Activities
Initially, EOUs were mainly concentrated in Textiles and Yarn, Food Processing, Electronics,
Chemicals, Plastics, Granites and Minerals/Ores. But now a day, EOU has extended it area of
work which includes functions like manufacturing, servicing, development of software,
trading, repair, remaking, reconditioning, re-engineering including making of
gold/silver/platinum jewellery and articles thereof, agriculture including agro-processing,
aquaculture, animal husbandry, bio-technology, floriculture, horticulture, pisiculture,
viticulture, poultry, sericulture and granites.
Need for Special License
To set up an EOU for the following sectors, an EOU owner needs a special license.
 Arms and ammunition,
 Explosives and allied items of defense equipment,
 Defense aircraft and warships,
 Atomic substances,
 Narcotics and psychotropic substances and hazardous chemicals,
 Distillation and brewing of alcoholic drinks,
 Cigarettes/cigars and manufactured tobacco substitutes.
In the above mention cases, EOU owner are required to submit the application form to the
Development Commissioner who will then put them up to the Board of Approvals (BOA).
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17. Choosing the Location for EOU-
EOUs can be set up anywhere in the country and may be engaged in the manufacture and
production of software, floriculture, horticulture, agriculture, aquaculture, animal husbandry,
pisciculture, poultry, handicraft and sericulture or other similar activities.
However, it should be noted that in case of large cities where the population is more than one
million, such as Bangalore and Cochin, the proposed location should be at least 25 km away
from the Standard Urban Area limits of that city unless, it is to be located in an area
designated as an "industrial area" before the 25th July, 1991. Non-polluting EOUs such as
electronics, computer software and printing are exempt from such restriction while choosing
the area.
Apart from local zonal office and state government, setting up of an EOU is also strictly
guided by the environmental rules and regulations. Therefore, an even if the EOU unit has
fulfilled all locational policy but not suitable from environmental point of view then the
Ministry of Environment, Government of India has right to cancel the proposal. In such
situation industrialist would be required to abide by that decision.
EOU Unit Obligations:
The EOUs are required to achieve POSITIVE NFE (Net Foreign Exchange Earning). For
example if unit import of Rs.100 it should export for Rs.101.
Bonding Period of EOU
The EOUs are licensed to manufacture goods within the bonded time period for the purpose
of export. As per the Exim Policy, the period of bonding is initially for five years, which is
extendable to another five years by the Development Commissioner.
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18. COMPANY REGISTRATION WITH EXPORT
PROMOTION COUNCIL OF INDIA-
All the units which are engaged in export should be registed with respective Export
Promotion Councils. Likewise, Akbar Corporation Ltd., is registered with Export Promotion
Council of Handicrafts (EPCH).
EPCH is work under Development Commissioner of Handicraft, Government of India.
COMPANY CERTIFICATE(ISO-9001 - 2000)-
 Set of international standards on quality management and quality assurance,
critical to international business .
 ISO 9001 is a family of standards for quality management systems.
GREEN CARD HOLDER-
To promote EOU, Government of India is issuing Green Card to all the EOU. The benefiets
of the Green Card is that EOU gets special treatement in all the government offices in which
it requires permissions.
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19. IMPORT EXPORT CODE (IEC) ISSUED BY DGFT-
Directorate General of Foreign Trade, which is headed by the Director General of Foreign
Trade. The office of the DGFT is responsible for formulating and execution of Foreign Trade
Policy, including licensing. Till 1991, was known as the Chief Controller of Imports &
Exports (CCI&E).
DGFT is responsible for implementing the Foreign Trade Policy or Exim Policy with the
main objective of promoting exports. To regulate and keep check on international trade,
DGFT issue IEC. An IEC holder can only do the interntional trade.
IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade ,
Ministry of Commerce, Government of India to Indian Companies.
IEC Code No Notification:
Directorate General of Foreign Trade(DGFT) issued a Policy Circular No.15 (RE-
2006)/2004-2009 Date: 27th July, 2006) for New System for issuance of Importer-Exporter
Code Number.
Eligibility, Legal Provisions and Conditions for IEC Code Number
Eligibility condition and Legal Provisions are given for IEC Code Number Application in
Foreign Trade (Regulation) Rules, 1993 Ministry of Commerce, Notification No. GSR 791
(E), dated 30-12-1993.
Application for Grant of IEC Number
An application for grant of IEC number shall be made by the Registered/Head Office of the
applicant and apply to the nearest Regional Authority of Directorate General Foreign Trade,
the Registered office in case of company and Head office in case of others, falls in the
‗Aayaat Niryaat Form - ANF2A‘ and shall be accompanied by documents prescribed therein.
In case of STPI/ EHTP/ BTP units, the Regional Offices of the DGFT having jurisdiction
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over the district in which the Registered/ Head Office of the STPI unit is located shall issue
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or amend the IECs.
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20. Only one IEC would be issued against a single PAN number. Any proprietor can have only
one IEC number and in case there are more than one IECs allotted to a proprietor, the same
may be surrendered to the Regional Office for cancellation.
LETTER OF PERMISSION (LOP)
Letter of permission issued by the Development Commissioner of NSEZ to the unit is itself a
licence. EOU get detail of business which unit can undertake in LOP. Based on the items
covered under the LOP, unit can procure duty free imported and indigenous machinery and
raw material. LOP may also be used for the procurement of the items like furnace oil from
authorized oil companies since this is otherwise a canalised item and cannot be directly
imported by the export oriented units. Besides the import of capital goods is permitted on the
basis of self declaration by the unit, regarding the description, quantity and value of the
goods.
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21. BOND 17-
All the Export Oriented Units in India need to conduct its operations under the supervision of
the Customs and Central Excise Department. For this purpose, EOU has to sign a
multipurpose bond with the jurisdictional Deputy Commissioner of Customs and Central
Excise at the time of commencement of the unit. The bond is submitted in a prescribe format
along with the copy of EOU project report and Letter Of Proposal (LOP) to the Deputy
Commissioner‘s Office in the zone. Apart from these documents, EOU also need to submit a
worksheet authenticated by the authorized signatory showing the details of imported /
indigenous material covered by the Bond.
B-17 Bond Format is prescribed vide notification No. 6/98-CE (NT) dated 2-3-1998. The B-
17 Bond covers different types of activities that includes transshipment of import /export
goods between port of import/export and units' premises; duty-free import/procurement from
the original sources as per relevant notification and warehousing/storage in the unit;
movement of duty-free goods for job work and return; temporary clearance for repair and
display in exhibitions, testing/approvals etc.; and movement of goods against AR-4, AR-3A
and CT-3 etc. and transfer from one warehouse to another. However, B-17 Bond does not
cover the differential duty amount against advance DTA sale.
The B-17 Bond is taken for an amount equal to 25% of the duty forgone on the sanctioned
requirement of capital goods plus the duty forgone on raw materials required for 3 months.
Surety or security equivalent 5% of the bond amount in the form of bank guarantee is
required to be given by the EOUs.
B-17 Bond Format
On Rs.100/- Stamps Bond Paper
Form B-17 (General Surety / Security
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22. FOREIGN TRADE POLICIES-
The UPA Government has assumed office at a challenging time when the entire world is
facing an unprecedented economic slow-down. The year 2009 is witnessing one of the most
severe global recessions in the post-war period. Countries across the world have been
affected in varying degrees and all major economic indicators of industrial production, trade,
capital flows, unemployment, per capita investment and consumption have taken a hit. The
WTO estimates project a grim forecast that global trade is likely to decline by 9% in volume
terms and the IMF estimates project a decline of over 11%. The recessionary trend has huge
social implications. The World Bank estimate suggests that 53 million more people would
fall into the poverty net this year and over a billion people would go chronically hungry.
Though India has not been affected to the same extent as other economies of the world, yet
our exports have suffered a decline in the last 10 months due to a contraction in demand in
the traditional markets of our exports. The protectionist measures being adopted by some of
these countries have aggravated the problem. After four clear quarters of recession there is
some sign of a turnaround and the emergence of ‗green shoots‘, though I would be hesitant to
hazard a guess on the nature and extent of this recovery and the time the major economies
will take to return to their pre-recession growth levels. Announcing a Foreign Trade Policy in
this economic climate is indeed a daunting task. We cannot remain oblivious to declining
demand in the developed world and we need to set in motion strategies and policy measures
which will catalyse the growth of exports.
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23. HIGHLIGHTS OF FOREIGN TRADE POLICY 2009-2014
Higher Support for Market and Product Diversification
1. Incentive schemes under Chapter 3 have been expanded by way of addition of new
products and markets.
2. 26 new markets have been added under Focus Market Scheme. These include 16 new
markets in Latin America and 10 in Asia-Oceania.
3. The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to
3%.
4. The incentive available under Focus Product Scheme (FPS) has been raised from 1.25% to
2%.
5. MLFPS benefits also extended for export to additional new markets for certain products.
These products include auto components, motor cars, bicycle and its parts, and apparels
among others.
6. A common simplified application form has been introduced for taking benefits under FPS,
FMS, MLFPS and VKGUY.
7. Higher allocation for Market Development Assistance (MDA) and Market Access
Initiative (MAI) schemes is being provided.
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24. BANKER OF THE COMPANY-
 Company is banking with
 Indian Overseas |Bank
 Moradabad
DOCUMENTATION-
DGFT has made a uniform format of documentation which is being used in
international business. In the prescribed format company issue
Invoice
Packing List
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25. PAYMENT TERMS-
 LC-Letter of credit
 DP-Documents againts payment
 TT-Telegraphic/talax
CAPITAL STRUCTURE OF ACL
AKBAR CORPARATION LIMITED is private limited Company and its capital
structure totally own share its mean equity share company and details given below-
SHARE HOLDER- 7 CRORE
BANK LIMIT FOR RAISING FUND- 1 CRORE
ASSETS-
FIXED ASSETS- 5 CRORE
CURRENT ASSETS- 3.5 CRORE
LIABILITY-
CURRENT LIABILITY- .25 CRORE
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26. FORM FOR MAKING OUTWARD FOREIGN
REMITTANCE-
Recently RBI has made amendment in its polices. Now every exporter needs to fill online
Form 15AB and after submitting the same to RBI, RBI give online registration number. The
Form 15AB will go to Bank along with all other required documents like invoice etc. And
based on that bank will transfer the payment to overseas supplier.
Major Export Market of ACL:
 Central & South America
 Eastern Europe
 Hong Kong
 Korea
 Middle East
 Western Europe
 Worldwide
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27. HOW TO EXPORT IN INTERNATIONAL MARKET:
 GOLDEN RULE
 SELL EXPERIENCE
 SELLING IN EXPORT
 ON TIME DELIVERIES
 COMMUNICATION
 TESTING PRODUCTS
 APPROACH
Golden Rule:
In order to be successful in exporting one must fully research its markets. No one should ever try to
tackle every market at once. Many enthusiastic persons bitten by the export bug, fail because they bite
off more than they can chew. Overseas design and product requirements must be carefully considered.
Always sell as close to the market as possible. The fewer intermediaries one has the better, because
every intermediary needs some percentage for his share in his business, which means less profit for
the exporter and higher prices for the customer. All goods for export must be efficiently produced.
They must be produced with due regard to the needs of export markets. It is no use trying to sell
windows which open outwards in a country where, traditionally, windows open inwards.
Sell Experience:
If a person cannot easily export his goods, may be he can sell his experience. Alternatively, he can
concentrate on supplying goods and materials to exporters' who already have established an export
trade. He can concentrate on making what are termed 'own brand' products, much demanded by
buyers in overseas markets which have the manufacturing know-how or facilities.
Selling in Export:
In today's competitive world, everyone has to be sold. The customer always has a choice of suppliers.
Selling is an honorable profession, and you have to be an expert salesman.
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On-Time Deliveries:
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28. Late deliveries are not always an exporters fault. Dock strikes, go-slows, etc. occur almost
everywhere in the world. If one enters into export for the first time, he must ensure of fast and
efficient delivery of the promised consignment.
Communication:
Communication internal and external must be comprehensive and immediate. Good communication
is vital in export. When you are in doubt, pick up the phone or email for immediate clarification.
Testing Product:
The risk of failure in export markets can be minimized by intelligent use of research. Before
committing to a large-scale operation overseas, try out on a small scale. Use the a sample test, and any
mistakes can then be corrected without much harm having been done
Approach:
If possible some indication of the attitudes towards the product should be established, like any sales
operation. Even if the product is successful, to obtain reactions from the customer.
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29. PRELIMINARIES FOR STARTING EXPORT
BUSINESS:
 SETTING UP A N APPROPRIATE BUSINESS ORGANIZATION
 CHOOSING APPOPRIATE MODE FO ACTION
 NAMING THE BUSINESS
 SELECTING THE MARKETS
 SELECTING PROSPECTING BUYERS
 SELECTING CHANNELS OF DISTRIBUTION
 NEGOTIATION WITH PROSPECTIVE BUYERS
 PROCESSING AN EXPORT ORDER
 ENTERING INTO EXPORT CONTRACT
 EXPORT PRICING AND COSTING
 UNDERSTANDING RISK IN INTERNATIONAL TRADE
Setting up an appropriate business organization
The first and the foremost question you as a prospective exporter has to decide is about the kind of
business organisation needed for the purpose. You have to take a crucial decision as to whether a
business will be run as a sole proprietary concern or a partnership firm or a company. The proper
selection of organisation will depend upon
 Your ability to raise finance
 Your capacity to bear the risk
 Your desire to exercise control over the business
 Nature of regulatory framework applicable to you
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Exporters Manual and Documentation
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30. Company is another form of business organisation,which has the advantage of distinct legal identity
and limited liability to the shareholders. It can be a private limited company or a public limited
company. A private limited company can be formed by just two persons subscribing to its share
capital. However, the number of its shareholders cannot exceed fifty, public cannot be invited to
subscribe to its capital and the member's right to transfer shares is restricted. On the other hand, a
public limited company has a minimum of seven members
Choosing appropriate mode of operation
You can chose any of the following modes of operations:
Merchant Exporter i.e. buying the goods from the market or from a manufacturer and then
selling them to foreign buyers.
Manufacturer Exporter i.e. manufacturing the goods yourself for export Sales
Agent/Commission Agent/Indenting Agent i.e. acting on behalf of the seller and charging
commission Buying Agent i.e. acting on behalf of the buyer and charging commission
Naming the Business
Whatever form of business organisation has been finally decided, naming the business is an
essential task for every exporter. The name and style should be attractive, short and
meaningful. Simple and attractive name indicating the nature of business is ideal. The office
should be located preferably in a commercial complex, in clean and workable surroundings.
The letter head should be simple and superb providing information concerning H.O.,
branches, cable address, telephone number, fax number, banker's name and address etc. Pick
up a beautiful trade name and logo which reinforces your organisation's name and image.
Selecting the Company
Carefully select the product to be exported. For proper selection of product, study the trends
of export of different items from India. The selected product must be in demand in the
countries where it is to be exported. It should be possible to procure or manufacture the
selected product at most economic cost so that it can be competitively priced. It should also
be available in sufficient quantity and it should be possible to supply it repeatedly and
regularly
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Selecting the markets
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31. Target markets should be selected after careful consideration of various factors like political
embargo, scope of exporter's selected product, demand stability, preferential treatment to
products from developing countries, market penetration by competitive countries and
products, distance of potential market, transport problems, language problems, tariff and non-
tariff barriers, distribution infrastructure, size of demand in the market, expected life span of
market and product requirements, sales and distribution channels. For this purpose you
should collect adequate market information before selecting one or more target markets. The
information can be collected from various sources like Export Promotion Council
(EPCs)/Commodity Boards, Federation of Indian Export Organisation, (FIEO), Indian
Institute of Foreign Trade (IIFT), Indian Trade Promotion Organisation (ITPO), Indian
Embassies Abroad, Foreign Embassies in India, Import Promotion Institutions Abroad,
Overseas Chambers of Commerce and Industries, Various Directories, Journals, Market
Survey Reports.
Selecting prospective Buyers
You can collect addresses of the prospective buyers of the commodity from the following
sources:
Enquiries from friends and relatives or other acquaintances residing in foreign countries.
Visiting/ participating in International Trade Fairs and Exhibitions in India and abroad.
Contact with the Export Promotion Councils, Commodity Boards and other Government
Agencies.
Selecting channels of distribution
The following channels of distribution are generally utilised while exporting to overseas
markets :
 Exports through Export Consortia
 Export through Canalising Agencies
 Export through Other Established Merchant Exporters or Export Houses, or Trading
Houses
 Direct Exports
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 Export through Overseas Sales Agencies
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32. Negotiating with Prospective Buyers
Whatever the channel of distribution for exporting to the overseas countries is proposed to be
is utilized, it is essential that the exporters should possess the necessary skill for negotiating
with the overseas channels of distribution. The ability to negatiate effectively is needed for
discussion with importers or trade agents. While conducting business negotiations, the
prospective exporter should avoid conflict, controversy and criticism vis-`-vis the other party.
During conversation the attitude should be to communicate effectively
Processing an Export order
You should not be happy merely on receiving an export order. You should first acknowledge
the export order, and then proceed to examine carefully in respect of items, specification,
preshipment inspection, payment conditions, special packaging, labeling and marketing
requirements, shipment and delivery date, marine insurance, documentation etc. if you are
satisfied on these aspects, a formal confirmation should be sent to the buyer, otherwise
clarification should be sought from the buyer before confirming the order. After confirmation
of the export order immediate steps should be taken for procurement/manufacture of the
export goods
Entering into an Export contract
In order to avoid disputes, it is necessary to enter into an export contract with the overseas
buyer. For this purpose, export contract should be carefully drafted incorporating
comprehensive but in precise terms, all relevant and important conditions of the trade deal.
The different aspects of an export contract are enumerated as under :
 Product, Standards and Specifications
 Quantity
 Inspection
 Total Value of Contract
 Terms of Delivery
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 Taxes, Duties and Charges
 Period of Delivery/Shipment
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33.  Packing, Labeling and Marking
 Terms of Payment-- Amount/Mode & Currency
 Discounts and Commissions
 Licenses and Permits
 Insurance
 Documentary Requirements
 Guarantee
 Force Majeure of Excuse for Non-performance of contract
 Remedies
Export Pricing and Costing
Export pricing should be differentiated from export costing. Price is what we offer to the
customer.Cost is the price that we pay/incur for the product. Price includes our profit margin,
cost includes only expenses we have incurred. Export pricing is the most important tool for
promoting sales and facing international competition. The price has to be realistically worked
out taking into consideration all export benefits and expenses. However, there is no fixed
formula for successful export pricing. It will differ from exporter to exporter depending upon
whether the exporter is a merchant exporter or a manufacturer exporter or exporting through a
canalising agency. You should also assess the strength of your competitor and anticipate the
move of the competitor in the market. Pricing strategies will depend on various circumstantial
situations. You can still be competitive with higher prices but with better delivery package or
other advantages
Your prices will be determined by the following factors:
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 Range of products offered
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34.  Prompt deliveries and continuity in supply
 After-sales service in products like machine tools, consumer durables
 Product differentiation and brand image
 Frequency of purchase
 Presumed relationship between quality and price
 Specialty value goods and gift items
 Credit offered
 Preference or prejudice for products originating from a particular source
 Aggressive marketing and sales promotion
 Prompt acceptance and settlement of claims
 Unique value goods and gift items
Understanding risks in International trade
While selling abroad, you may undergo the following risks:
 Credit risk
 Currency risk
 Carriage risk
 Country risk
These risks can be insured to a great extent by taking appropriate steps. Credit risk against the
buyer can be covered by insisting upon an irrevocable letter of credit from the overseas
buyer. An appropriate policy from Export Credit and Guarantee Corporation of India Ltd. can
also be obtained for this purpose. Country risks are also covered by the ECGC. As regards
currency risk, i.e. possible loss due to adverse fluctuation in exchange rate, You should obtain
forward cover from your bank authorised to deal in foreign exchange.
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
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licensing authorities is sufficient before commencing export or import.
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35. 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.
PRODUCT OF THE ACL:
Product/Service Decorative Accessories of Brass, Garden Accessories, Handicrafts,
Range: Lighting, General House Ware, Wrought Iron Furniture & Gift Items
PRODUCTS IMAGE-
Silver-Plated Aluminum Vase Aluminum Vase
Aluminum
Decoration Aluminum Fruit Bowl
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36. WOODEN CANDLE
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37. METAL CANDLE 37
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38. IRON CANDLE
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39. TIMBER INFO-(USE IN ACL)
Hardwood may no longer account for the majority of today's furniture, but it will always
be special, the material of choice for discerning customers and uncompromising
manufacturers.
The character, warmth and beauty bestowed by its grain, combined with the inherent
strength and texture given by its form, renders hardwood unique.
Our furniture is a showcase for the outstanding qualities of solid wood.
We use only hardwoods for our furniture essentially including the Indian
Rosewood, European Oak and the Hard Maple.
The European Oak (Quercus Robur) is a hardwood usually straight and long grained in
trees cut from large stands. Quarter sawn European Oak tends to have a silvery grain
structure. The wood's texture is coarse and characterized by open pores. Wood harvested
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from the northern areas of the species distribution zone tends to be denser and tougher.
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40. The wood from the central regions is less denser and more straighter and uniform.
The colors of the wood vary from light brown to a dark tan. Sapwood and heartwood
have similar colors and grain patterns. Sapwood tends to be lighter in color. The wood
has a very good steam bending classification. It dries very slowly. A yellow stain that
eventually disappears is common during drying. The wood takes liming, waxing and
polishing treatments very well. The heartwood is durable and is extremely resistant to
preservative treatment.
The European oak is ideal for boat building, high-class joinery, flooring, furniture and is
sliced for decorative veneers.
The hard Maple (Acer Saccharum) is a hardwood. The sapwood is creamy white with a
slight reddish brown tinge and the heartwood varies from light to dark reddish brown.
The amount of darker brown heartwood can vary significantly according to growing
region. Both sapwood and heartwood can contain pith fleck. The wood has a close fine
texture and is generally straight grained, but it can also occur as "curly", "fiddleback",
and "birds-eye" figure. The superior working characteristics make maple an exceptional
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furniture wood. With care it machines well, turns well, glues satisfactorily, and can be
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41. stained and polished to an outstanding finish. The wood is hard and heavy with good
strength properties, in particular its high resistance to abrasion and wear. It also has good
steam bending properties. The timber dries slowly with undue difficulty. It is excellent
for flooring, furniture, paneling, kitchen cabinets, worktops and table tops, interior
joinery, stairs, handrails, moldings, and doors.
The Indian Rosewood (Dalbergia latifolia) is a hardwood with a narrow interlocked
uniform grain, with a moderately coarse texture, and low luster. The colors of the
heartwood vary from a golden brown to a dark purple brown with darker streaks giving
the wood a very intense and interesting pattern. This wood is heavy, hard and dense with
high bending and crushing strengths, medium shock resistance, good stability, excellent
steam bending characteristics and a very durable heartwood. The timber seasons well
and dries defect free in log form. The color of the wood improves during the drying
process and the end product takes an excellent finish.
The grain requires filling to achieve a high polish. It responds well to a wax polish.
Indian Rosewood is ideal for fine furniture and cabinetwork, turnery, decorative veneers
and specialty items.
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42. CONCLUSION
Akbar Corporation limited is good position in this period and good running in the export
sector. It makes many types of product like as totally handicraft product.No sell in India only
export out of country.It is Handicraft product manufacturing company.Its export manager is
very good person and have lot of experience in export field.
I got lot of knowledge about export procedure and how to manage in Organization
Mr Akbar Qayyum has 32 years experience in export field.
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43. BIBLIOGRAPHY:
http//:wwwakbardesign.com
http//:www.hktdc.com/sourcing/products
http//:www.indiandata.com/trade_policy
text book:export oriented unit and sez unit
REFERENCES:
http://www.clickz.com/stats/sectors/export/article.php/
http://www.esearch.com/currentstudies/3qsummary99.htm
http//:www.sharekhan.com
http//:www.paisabuilder.com
http//:www.akbarbrassproduct.com
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