In the world of export-import, each shipment counts. And you cannot afford to make any “uninformed investment”. So, if you have any doubt or a question, ask us. Our team of experts at The Dollar Business Intelligence Unit will be happy to answer your queries. Your question(s), if approved, will also be published on www.thedollarbusiness.com, and/or in forthcoming issue of The Dollar Business

We export against advance payment by bank TT, and export by air cargo. It is a commercial shipment. The bank provides us with foreign inward remittance certificate. Do we need to inform RBI or DGFT of our payments? (Ashish, +91-8866767XXX, [email protected])

Dear Ashish: As per the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, prior approval of RBI is required by an exporter for receipt of advances for which the time duration of commercial shipment (exports) of goods exceeds one year as per the export agreement. As a response to requests received from exporters, RBI has also allowed Authorised Dealer (AD) Category-I banks (which includes 106 major banks), to allow exporters with a minimum track record of 3 years to receive long term export advance up to a maximum duration of 10 years. There are conditions of disclosure attached in this case as well. For instance, even in this case, receipt of advances of $100 million or more (Approx. Rs.670 crore+) need to be immediately reported to RBI.

Do let us know the duration between agreement date/export advance and date of shipping in your particular case so we can suggest better.

Response by: Steven Philip Warner, President (VMPL) & Editor-in-Chief, The Dollar Business

I am a manufacturer of greige fabric. Can you tell me how to calculate the cost (FOB and CIF) if I want to export the fabric to UAE? Is there a fixed format? And, is there any reliable source to get the information about freight, insurance cost and duties etc.? (Mehul, Proprietor, MVEK IMPEX, +91-9099161XXX, [email protected])

Dear Mehul: FOB means Free On Board (or Freight On Board). The term FOB indicates that the seller is liable to deliver goods on board a vessel designated by the buyer. This means all costs involved in delivering the goods on board of vessel (designated by the buyer) are to be borne by the seller. Beyond that point, the buyer has to bear all costs and risks of loss or damage of goods. Cost, insurance and freight (CIF), on the other hand, requires the seller to deliver the goods to a port of destination decided by the buyer and seller, and provides the buyer with the documents necessary to obtain the goods from the carrier. In this case, the costs of insurance and freight are borne by the seller. In case you have further queries, The Dollar Business Intelligence Unit would like to hear from you.

Response by: Dr. A. K. Sengupta, Chief Consulting Editor, The Dollar Business

Please help me understand Merchandise Exports from India Scheme (MEIS). How do I arrive at the incentive figure? (Uday, [email protected], +91-9632633XXX)

Dear Uday: The Merchandise Exports from India Scheme (MEIS), introduced in FTP 2015-2020, replaces erstwhile Chapter 3 incentive schemes – Focus Product Scheme (FPS), Focus Market Scheme (FMS), Market Linked Focus Product Scheme (MLFPS), Agri Infrastructure Incentive Scheme (AIIS) and Vishesh Krishi and Gram Udyog Yojana (VKGUY). The objective of the scheme is to offset infrastructural inefficiencies and associated costs involved in export of goods/products, which are produced/manufactured in India, especially those having high export intensity, employment potential and thereby enhancing India’s export competitiveness.

According to FTP 2015-2020, “Exports of notified goods/products with ITC[HS] code, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS. Appendix 3B also lists the rate(s) of rewards on various notified products [ITC (HS) code wise].” The basis of calculation of reward would be on realised FOB value of exports in free foreign exchange, or on FOB value of exports as given in the Shipping Bills in free foreign exchange, whichever is less, unless otherwise specified. Say, for instance, your product is entitled to 3% reward under MEIS. So, if the FOB value of your exports is Rs.1,00,000, you, as an exporter, are entitled to duty credit scrip worth Rs.3,000. [To get a better understanding of the scheme products covered under the MEIS scheme and the benefits available to the exporters refer to Chapter 3 of FTP 2015-20 on https://in.thedollarbusiness.com/foreign-trade-policy-2015-2020 and updated MEIS Schedule on https://in.thedollarbusiness.com/merchandise-exports-from-india-scheme] In case you have further queries, The Dollar Business Intelligence Unit would like to hear from you. Your question means a lot to us.

Response by: Manish K. Pandey, Editor, The Dollar Business

 

I plan to export turmeric powder from Karnataka. After some research and based on the information I got from your website, a large number of shipments are going for Jebel Ali port. Which is the best way to contact the buyers in the Jebel Ali port, apart from commonly used trade portals? Please tell me if there are any other effective means of locating buyers.? (Varun, Director, Viva Paramount Agro Private Limited, +91-9901233XXX, [email protected])

Dear Ashish: You can approach your concerned EPC – Spices Board – for assistance or reach out to potential buyers by posting your product information on https://in.thedollarbusiness.com/trade/b2b-login.php. You can also post your product information on platforms that meet your requirements and are popular among buyers in Dubai. Contacting Dubai Chamber of Commerce to help you find companies of your interest can be an option too. In case you have further queries,  Intelligence Unit would like to hear from you.

Response by: Indranil Das, Executive Editor, The Dollar Business

How do I export embroidery bridal lehenga? ((Tasdique, Owner, Noorie Creations, Delhi, [email protected], +91-9899548XXX)

Dear Tasdique: We assume you are a first-time exporter. First of all, you need to obtain an Importer-Exporter Code (IEC) from the DGFT. An IEC is a 10-digit number allotted to a person that is mandatory for undertaking any export/import activities. Application for obtaining IEC can be filed manually and submitting the form in the office of Regional Authority (RA) of DGFT. Now the facility for IEC in electronic form or e-IEC has also been operationalised. Once you have obtained the IEC and received an export order for your product from an overseas market you need to file the following mandatory documents required for export of goods from India: (1) Bill of Lading/Airway Bill; (2) Commercial Invoice cum Packing List; and (3) Shipping Bill/Bill of Export. Once you have submitted these documents you can ship your product to the buyer. You can also begin with approaching your concerned EPC – The Cotton Textiles Export Promotion Council (TEXPROCIL), The Synthetic & Rayon Textiles Export Promotion Council, Apparel Export Promotion Council etc. – for assistance or reach out to potential buyers by posting your product information on https://in.thedollarbusiness.com/trade/b2b-login.php.

Response by: Manish K. Pandey, Editor, The Dollar Business

I want to import used jute bags from Thailand and Malaysia. These jute bags are of near virgin quality, having been used just once. I am really confused as to what permissions are required for the same. Do I need permission from the Textile Commissioner, or permission from DGFT? Please guide me, as a lot of this trade has already started. (Ashutosh Goenka, Proprietor, La Raiz Global, +91-9811126XXX, [email protected])

Ashutosh: We assume you are interested in importing used jute bags falling under HS Code: 63051090. Usually, you need to take a ‘No Objection Certificate’ from Jute Commissioner for imports of jute bags. However, in case you want to import used jute bags you need to obtain a licence from the Textile Commissioner.

Response by: Steven Philip Warner, President (VMPL) & Editor-in-Chief, The Dollar Business