Last Updated 11 May 2020

International Trade Operations

Essay type Research
Words 666 (2 pages)
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Finding overseas markets or suppliers and dealing with shipping complexities are only two of the challenges facing small firms seeking to participate in international trade (IT). Entrepreneurs should be cautioned that international trade involves many complexities above and beyond the basic disciplines necessary for operating a domestic business. International trade (IT) can be defined as either the buying (importing) or selling (exporting) of goods or services on a global basis. (My Own Business, 2006).

This essay ill explore the important aspects of international trade operations its complexities include issues of documentation, shipping, financial, legal, communications, origins of order, insurance, custom, freight charges, insurance and licensing. Success in international trade will require that the start-up entrepreneur dedicate time, study and investment in order to gain appropriate knowledge and experience on these issues. India has a diverse and rich textile tradition. The origin of Indian textiles can be traced to the Indus valley civilization.

The people of this civilization used homespun cotton for weaving their garments. Excavations at Harappa and Mohen -Jo-Daro, have unearthed household items like needles made of bone and spindles made of wood, amply suggesting that homespun cotton was used to make garments. Fragments of woven cotton have also been found from these sites. (Crafts in India, 2006) As a manager of export shipping in India, I have the knowledge on all the documentations and the safety of the products from the place of origin to the destination of clients. The following should be taken into considerations:

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Registration Be sure that the company is registered 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 (list given in Appendix 2) in duplicate in the prescribed form given in Appendix 1. Before applying for IEC number it is necessary to open a bank account in the name of your company / firm with any commercial bank authorized 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 given in Appendix 1 of this Book. Two copies of Passport size photographs of the applicant duly attested by the banker to the applicants. There must be a copy of Permanent Account Number issued by Income Tax Authorities. (Income Tax Department, 1999). 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 authorized signatory, a copy of the letter of legal authority may be furnished.

(Gohil, 2006) 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. Register With Export Promotion Council

Be sure that the company is registered and have 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. (Geneva, 1999). The company also has copy of registration with SSI/any other sponsoring authority in addition to the application in the prescribed form for the Import Export Code Number. In addition, the EPC or FIEO shall issue the RCMC indicating the status of the applicant as merchant exporter or manufacturer exporter.

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International Trade Operations. (2018, Aug 20). Retrieved from https://phdessay.com/international-trade-operations/

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