INTERNATIONAL TRADE OPERATIONS

(IMPORT & EXPORT)

Objectives:
1.
Export import management is core to successful global business. A global
company has to ensure that its export and import activities not only comply with the
commercial requirements of the transactions, but also meet the rules, regulations and laws
of the participating countries. International trade procedures and documentation plays an
important role in achieving these objectives.
2.
To enable students organise the internal functions, documentation and financial
procedures that are necessary for effective and profitable operations of exports and
imports of the company.
3.

To make the student understand the Foreign Trade Policy of India.

4.
To develop complete understanding of export and import operations including
aspects covering payment and risk management.
CONTENTS:
1.

Export preliminaries
(a)

(3 Hours)

Overview of Foreign Trade Policy of India

(i)

Organising Exports

(ii)

Statutory Requirements
(aa)

IEC No.

(ab)

RCMC

(ac)

Central Excise and Sales Tax formalities

Learning Objective: To make students understand the preliminary activities to be

undertaken, before starting the exports.
Reference: Chapter No. 6 from the text book prescribed.
2.

Export operations

(4 Hours)

(a)

Export order/ Contract

(1.5 Hours)

(b)

Payment Terms and Realisation of export Proceeds

(2.5 Hours)

Page 1 of 7

(i)

Payment Terms: Cash, Credit, Deferred Payment

(ii)

Advance Payment and Letter of Credit

(iii)

Documentary collection: D/P and D/A

(iv)

EXIM Bank : Buyers/ Sellers Credit, Line of Credit

Learning objective: To make students understand the international commercial terms

and the payment terms.
Reference: Chapter No. 5 from the text book prescribed.
ASSIGNMENT - I
CLASS TEST- 1: (20 Marks): (It covers from Topic No 1 and 2 of the syllabus)
3.

Central Excise and Customs Clearance Formalities for Exports

(a)
(b)

(4.5 Hours)
Central Excise Clearance and ARE formality, Self Removal systems
(1 Hour)
Customs Clearance Formality
(3.5 Hours)
(i)

Customs House Agents (CHA)

(ii)

Documentary Customs Clearance (Manual/ Computer)

(iii)

Shipping Bill and Export Declarations under Exchange Control

(iv)
Port Formalities with Physical verification and Shipment of Export
Cargo
(v)

Mates Receipt and Bill of Lading

(vi)

ICDs and Multi Modal Transport system

Learning objective: To make students understand the excise and customs formalities
involved in exporting.
Reference: Chapter No. 17 from the text book prescribed.
4.

Post shipment documents

(1.5 Hours)

(a)

Direct Dispatch

(0.5 Hours)

(b)

Banking Channel

(0.5 Hours)

Page 2 of 7

(c)

Negotiation of Letter of Credit

(d)

DA/ DP

(0.5 Hours)

Learning objective: To make students understand the documents involved in claiming

payment from the importer.
Reference: Chapter No. 20 from the text book prescribed.
5.

Export Finance & Promotional Agencies

(3 Hours)

(a)

Pre and Post shipment Finance

(1 Hour)

(b)

Financing Deffered Payment Transactions

(1 Hour)

(c)

FIEO

(0.5 Hours)

(d)

ITPO

(0.5 Hours)

Learning objective: To make students understand the options available in raising finance
for exports & agencies involved in Promotion.
Reference: Chapter No. 13 from the text book prescribed.
ASSIGNMENT - II:
CLASS TEST - 2: (20 Marks): (It covers from chapter No 1 to 5 of the syllabus)
6.

Import Preliminaries

(3 Hours)

(a)
How to Import Introduction (Registration formalities, Import sourcing
,INCO terms etc)
(1 Hour)
(b)

Import Policy of the Govt of India (EXIM Policy)

(0.5 Hours)

(c)

Licence Application (Advance License,Fixation of SION) (0.5 Hours)

(d)

Validity of Licence

(0.5 Hours)

(e)

Conditions of Licence

(0.5 Hours)

Learning objective: To make students understand the basics of Import & the Licensing
Reference: Chapter No 2 & 4. & 9 from the text book prescribed.
7.

Import Incentives: Concept, Procedure and Documentation

(5 Hours)

(a)

(1 Hour)

Duty Drawback
Page 3 of 7

(b)

Central Excise Rebate on Terminal Excise Duty and CENVAT

(1 Hour)
(c)
Duty Exemption and Remission under EXIM policy and Bond
Manufacture
(1 Hour)
(d)

EPCG

(1 Hour)

(e)

Project imports

(1 Hour)

Learning objective: To make students understand various import incentives their

applicability and benefits.
Reference: Chapter No 4 & 17 & 18 from the text book prescribed.
ASSIGNMENT -III
8.

Import Documentation

(6 Hours)

(a)

Documents required for Imports & Customs regulations

(2 Hours)

(b)

Bill of Entry & types

(1 Hour)

(c)

IGM

(1 Hour)

(d)

Import duty calculations

(1 Hour)

(e)

Clearance of good on duty payment

(1 Hour)

CLASS TEST - 3: (20 Marks) : (It covers from topics no 1 to 8 of the syllabus)
9.

Selection of suppliers & Payment modes in Import

(6 Hours)

(a)

Locating foreign suppliers

(1.5 Hours)

(b)

Import Contracts

(1.5 Hours)

(c)

Import payment modes

(1.5 Hours)

(d)

Foreign exchange regulations

(1.5 Hours)

Learning objective: To make students understand the ways in which imports can be
carried out.
Reference: Chapter No 10 & 11 & 18 from the text book prescribed.
ASSIGNMENT -IV:
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10.

Special Schemes in Imports

(4 Hours)

(a)

MAI

(1 Hour)

(b)

MDA

(1 Hour)

(c)

EEFC Accounts

(1 Hour)

(d)

Deemed Exports

(1 Hour)

Learning objective: To make students understand the f how the various risks involved in
importing the goods in India can be covered.
Reference: Chapter No.23, 26 27 from the text book prescribed.
Total

(40 Hours)

Text Book:
1.
Export; Policy, Procedures & Documentation 2012-13, M. I. Mahajan, Snow
White Publications Pvt. Ltd., Mumbai, Latest Edition
Reference Books:
1.
Import Policy, Procedures & Documentation 7 th Edition by Snow White
publications. Author M I Mahajan
2.

Export Import Management by Justin Paul, Oxford Publication.

3.

Import; Do it yourself by MI Mahajan, Snow White publications.

4.

Export; What, where & how by Ram Paras, Anupam Publishers.

5.
Foreign Trade Policy: Ministry of Commerce and Industry, Department of
Commerce, Government of India.
6.
Handbook of Procedures Vol. I, Office of Director General of Foreign Trade,
New Delhi.
7.
Handbook of Procedures Vol. II, Office of Director General of Foreign Trade,
New Delhi.
8.
ITC (HS) Classification of Import Export items, Office of Director General of
Foreign Trade, New Delhi.
9.
Drawback Rules: Directorate of Drawback, Ministry of Finance, Government of
India.
Page 5 of 7

INTERNATIONAL TRADE OPERATIONS

(IMPORT & EXPORT)
ASSIGNMENTS
ASSIGNMENT-I
Instructions
(a)
This assignment should carry 20 marks.
(b)
It should be submitted immediately after completion of the unit No 2
(c)
Each question should be answered in approximately 300 words.
(d)
All questions carry equal marks.
(e)
The assignment should be hand written
Q1.
You are expecting to start an Export business and have to start by completion of
all the formalities required for the same.
Q2.
Draw out the documents like IEC application Form/RCMC application
Form/Central Excise/Sales tax registration by considering a hypothetical Company with
all the details like name/address and other requisites.
ASSIGNMENT-II
Instructions
(a)
This assignment should carry 20 marks.
(b)
It should be submitted immediately after completion of the unit No 5
(c)
Each question should be answered in approximately 300 words.
(d)
All questions carry equal marks.
(e)
The assignment should be hand written
Q1.
You are in the process of removing the goods from the factory for the purpose of
shipment.
Q2.
In order to do the same documents are required like ARE1 and the Shipping
invoice to transfer the goods to the port.
Q3.
Next step is to prepare the documents like Shipping Bill/SDF form for the
customs and finally the Mates receipt for the shipping lines.
Q4.
Prepare the documents considering your own Company name and other details
and picking up the relevant info form the documents generated.
ASSIGNMENT- III
Instructions
(a)
This assignment should carry 20 marks.
(b)
It should be submitted immediately after completion of the unit No 7
(c)
Each question should be answered in approximately 300 words.
Page 6 of 7

(d)
(e)

All questions carry equal marks.

The assignment should be hand written

Q1.
You as an exporter has to apply either for Pre or Post shipment Finance.
File an application with the bank with all the details as required with the following
information.
Name of the exporter ABC & Company. Port of Shipment: Mumbai
Value of Export USD20,000.00
Country: Brazil, Port Rio
Payment Terms: LC at Sight.
Considering the above info we also have to cover Insurance under All Risks Policy.
Fill up the application form for the transit coverage.
ASSIGNMENT-IV
Instructions
(a)
This assignment should carry 20 marks.
(b)
It should be submitted immediately after completion of the unit No 9
(c)
Each question should be answered in approximately 300 words.
(d)
All questions carry equal marks.
(e)
The assignment should be hand written
Q1.
We propose to participate in an International Trade fair through ITPO or FIEO.
Start corresponding with them for the same and furnish the required details Loke the
Profile and background of your Company. Products/Countries of export. Export
volume/Area required for stall/Previous participations/Charges to be paid etc.
Q2.
We have with us and Imported consignment of the materials as per the following
valuation and details.
Name of the Chemical: Methanol
ITC No: 2906002
Quantity: 2000 MT
Port of shipment: Bunder Busher,Iran
Port of discharge: JNPT Mumbai
Value in USD 150000 CIF Mumbai
The rate of Customs duty applicable 10% Ad valorem.
In additional there is SAD of 1% Education Cess of 0.5%.Plus Stamp Duty as applicable
is Rs 2000.00.
Calculate the Customs duty to be Paid for this shipment.

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