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Copyright'2008,NewAgeInternational(P)Ltd.,Publishers
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ISBN(13):978-81-224-2326-6
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PREFACE
In view of the increasing thrust of exports in the field of International Marketing,
a number of Indian Universities have introduced the subject “Export-Import Procedures,
Documentation and Logistics” at Post-graduation level, in particular M.B.A., while
certain inputs of the subject are also taught even at graduation level in some of the
institutes.
This subject has gained importance looking to the job potential, as doors of
employment have been opened on this new front with the increasing pace of exports
and emphasis on globalisation.
To me, to write this book, an inspiring force has been students of my Institute.
Since introduction of U.G.C. syllabus at M.B.A., they have always complained that they
are not able to find a comprehensive book to meet their academic requirements, in a
systematic and meaningful manner. Their persistent demand, semester after semester
has heightened.
Their request has turned into a fruitful compliance with my stay for four months
in United States to support my daughters and enjoy vacation. I have promised my
students, before departure, that I would be back at the Institute with a book to place
in their hands to meet their longstanding desire.
This book provides a single place — Just like a single window concept — where
MBA students, following UGC syllabus, adopted by many Universities, can find all the
topics, dealt in a systematic manner. The topics are covered in the same order of UGC
syllabus for students’ convenient reading. Other students who have this subject at
graduation/post graduation level, hopefully, find this book irresistible, considering its
relevance and usefulness, as many Business Schools/Institutions, largely, have the
same topics, chosen by UGC, in their course content. Recent path - breaking
developments in Simplification of Documents, made by the Government in August,
2005, have also been added in this book.
Computerized Customs Clearance both for exports and imports has come into
operation from September 2004. This is in vogue at over 19 ports in India. I have
focused to deal with this new area, as highlighted, in detail, along with manual clearance
still existing at those ports, where computerized processing has not, yet, been initiated.
I shall feel delighted if this book fills in the students’ quench, which they have
been craving. My aim has been to answer three questions mainly in each topic — “Who,
Why and What for”. Experience has given me the feeling that many books do not
answer these questions, adequately, leaving basics unclear. My effort has been to address
these issues with clarity.
I record my appreciation to my ever-smiling Director Prof. P.K. Chopra, who
knows the art of being a tense freeman, even in the midst of tensions.
(viii)
During my stay in U.S., I have been able to secure the necessary environment
with the support of my two professionally employed daughters—Radhi and Dheera—and
my two little American Citizens, grandsons—Theer and Tarkh. I owe this book to my
wife Sandhya—for her unflinching love and care towards me. But for the computer
support provided by my two sons-in-law — Kalyan and Kish — this book could not have
been completed. In fact, Kish, despite his busy and heavy schedule, has designed the
colourful front page to give completeness to the book.
My special thanks are due to my dear friend Mr. R. Satyanarayana who has taken
pains for careful proof reading.
I have gone through the autobiography of Mahatma Gandhiji “My Experiments
with Truth” during my early student days. I have been greatly influenced with the
simple language of the book with total focus on communication. Needless to add, I have
made sincere efforts to give tinge of that style of writing to my readers. I feel happy
if my students can understand what I have wanted to convey without the barrier of
language.
PROF. C. RAMA GOPAL
CONTENTS
Preface (vii)
1. Export-Import Trade : Introduction to Regulatory Framework 1
2. Export Preliminaries 5
3. Documentation Framework—Aligned Documentation System 11
4. International Business Contracts 32
5. Terms of Payment 48
6. Instruments of Payment & Methods of Financing Exports 59
7. Uniform Customs & Practice for Documentary Credits 71
8. Business Risk Coverage 75
9. Cargo Insurance 83
10. Foreign Exchange Regulations & Formalities 93
11. Quality Control and Preshipment Inspection 96
12. Role of Clearing and Forwarding Agents 103
13. Excise Clearance of Cargo 108
14. Shipment of Export Cargo 118
15. Customs Clearance of Export Cargo 122
16. Customs Clearance of Import Cargo 135
17. Negotiation of Documents with Banks 144
18. Procedures and Documentation for Availing Export Incentives 153
19. Processing of an Export Order 163
20. World Shipping 175
21. Indian Shipping 186
22. Containerisation 195
23. Machinery for Consultation 206
24. Air Transport 212
25. International Set-up 220
Index 225
