Report

On
How to start an
export business
of coffee?
Submitted By:
Kashpi Mittal(PGFA-1019)
Nupur Goel(PGFA-1027)
Pinky Jain(PGFA-1030)
Reshu Varshney(PGFA-1034)
Rythem Gupta(PGFA-1045)
 Introduction
Key success factor:-
 Clear understanding and detail knowledge of products to be exported
 Must fully research its foreign market rather than try to tackle every market
at once
 Should approach a market on a priority basis. Overseas design and
product must be studies properly and considered carefully.
 As there are specific laws dealing with International trade and foreign
business, it is imperative that you familiarize yourself with state, federal,
and international laws before starting your export business.

Why Need to Export?

There are many good reasons for exporting:

1. To earn foreign exchange. The foreign exchange not only brings

Profit for the exporter but also improves the economic condition of
the country.

2. To be more reliable than their counterpart domestic companies

Assuming that exporting company has survive the test in meeting
International standards.

3. Free exchange of ideas and cultural knowledge opens up immense Business

and trade opportunities for a company.
4. As one starts visiting customers to sell one’s goods, he has an opportunity to
start exploring for newer customers, state-of-the-art machines and
vendors in foreign lands

5. By exporting goods, an exporter also becomes safe from offset lack of

Demand for seasonal products

6. International trade keeps an exporter more competitive and less vulnerable to

the market as the exporter may have a business boom in one sector
while simultaneously witnessing a bust in a different sector.

IDENTIFYING PRODUCT FOR EXPORT

 A key factor in any export business is clear understanding and detail
knowledge of products to be exported
  The selected product must be in demand in the countries where it is to be
exported

 Before making any selection, one should also consider the various
government policies associated with the export of a particular product

 It is better for both the groups to be methodical and systematic in

identifying a right product.

Key Factors in Product Selection

 ISO or equivalent certification helps in selling the product in the
international market.
 Avoid products which are monopoly of one or few suppliers
 The price of the exported product should not fluctuate very often -
threatening profitability to the export business.
 Strictly check the government policies related to the export of a particular
product.
 Carefully study the various government incentive schemes and tax
exemption like duty drawback and DEPB.
 Import regulation in overseas markets, specially tariff and non-tariff
barriers.
 Registration/Special provision for your products in importing country.
 Seasonal vagaries of selected products
 Special packaging and labeling requirements of perishable products like
processed food and dairy products.
 Special measures are required for transportation of certain products,
which may be bulky or fragile or hazardous or perishable.

Policies- Registration & Permits

EXPORT REGISTRATION & ISSUE OF REGISTRATION - CUM -
MEMBERSHIP - CERTIFICATE (RCMC)

An exporter may, on application, register with Coffee Board as one of the

members of Registered exporter of Coffee.
On being registered, the applicant shall be granted a certificate of Registration &
on request RCMC shall be issued which will be valid for 5 years ending 31st
March of the licensing year, unless otherwise specified.
Application for registration may be cancelled on payment of Rs 100 towards cost
of Application.

ISSUE OF EXPORT PERMITS & CERTIFICATE OF

ORIGIN COFFEE
Board issues Export permits under Rule 44(2) Coffee Act 1942 amended from
time to time along with Certificate of Origins to the registered exporter of coffee
against application, for coffee export

FURNISHING POST-SHIPMENT DOCUMENTS

The registered exporter shall submit the post-shipment documents on export of

coffee against each export permits obtained by them. The post-shipment
documents viz., copies of export permits, bill of lading with on Board Date Seal
and certificate of origin duly endorsed by the concerned Customs Authorities,
along with other details viz FOB value etc, and shall be submitted to the Coffee
Board within 45 days from the date of issue of export permits.
INTIMATION REGARDING CHANGE IN CONSTITUTION
In case of change in ownership, constitution, name or address of an exporter
shall be intimated voluntarily within one month from the date of such change.

DE-REGISTRATION
The registering authority may de-register the registered exporter of coffee for
violation of the terms & conditions of registration, after observing norms in this
regard. However, the exporter may appeal against their de-registration with the
registering authority.

Important circulars

QMS
The QMS or Logo scheme has been framed in order to protect the Image and
Quality of Indian Coffee in the International Market and to gain the confidence of
the overseas buyers.
The Board has framed the Quality Marking Scheme w.e.f. 24/11/2000 for issue of
Logo Certificate for export of coffee to those who voluntarily opt for the Scheme,
for the Coffee cured by the Certified Coffee Curing Works.
EPA
Coffee exporters can file for application for Export Permits and Certificates of
Origin on the Internet.

Grading and pricing

Grading and pricing is usually based on some of the following criteria:

Altitude and/or region
Botanical variety
Preparation (wet or dry process = washed or natural)
Bean size (screen size), sometimes also bean shape and colour
Number of defects (imperfections)
Roast appearance and cup quality (flavour, characteristics, cleanliness…)
Density of the beans
APPOINTING A SALES AGENT
Choose your foreign sales presence.

• An export agent will find buyers for your products or service and receive a
commission on sales.
Maintain regular contact with the agent and keep them informed of new product
developments.
• A sales distributor will buy your products from you and sell them on your behalf.
They can be used to conduct activities such as research.
• A joint venture with a local business will give your business access to
established markets.
However, the costs of running an overseas branch or office can be high.
• Selling via the Internet is a low-cost option. Make sure you can fulfil orders
quickly and efficiently.

PACKAGING AND LABELLING OF GOODS

Packaging
The primary role of packaging is to contain, protect and preserve a product as
well as aid in its handling and final presentation. Packaging also refers to the
process of design, evaluation, and production of packages. The packaging can
be done within the export company or the job can be assigned to an outside
packaging company. Packaging provides following benefits to the goods to be
exported: Physical Protection – Packaging provides protection against shock,
vibration, temperature, moisture and dust.
• Containment or agglomeration – Packaging provides agglomeration of
small objects into one package for reason of efficiency and cost factor. For
example it is better to put 1000 pencils in one box rather than putting each
pencil in separate 1000 boxes.
• Marketing: Proper and attractive packaging play an important role in
encouraging a potential buyer.
• Convenience - Packages can have features which add convenience in
distribution, handling, display, sale, opening, use, and reuse.
• Security - Packaging can play an important role in reducing the security
risks of shipment. It also provides authentication seals to indicate that the
package and contents are not counterfeit. Packages also can include anti-
theft devices, such as dye-packs, RFID tags, or electronic article
surveillance tags, that can be activated or detected by devices at exit
points and require specialized tools to deactivate. Using packaging in this
way is a means of loss prevention.
Labeling
Like packaging, labeling should also be done with extra care. It is also
important for an exporter to be familiar with all kinds of sign and symbols and
should also maintain all the nationally and internationally standers while using
these symbols. Labeling should be in English, and words indicating country of
 origin should be as large and as prominent as any other English wording on
the package or label.
• Labeling on product provides the following important information:
• Shipper's mark
• Country of origin
• Weight marking (in pounds and in kilograms)
• Number of packages and size of cases (in inches and centimeters)
• Handling marks (international pictorial symbols)
• Cautionary markings, such as "This Side Up."
• Port of entry
• Labels for hazardous materials
Labeling of a product also provides information like how to use,
transport, recycle, or dispose of the package or product. With pharmaceuticals,
food, medical, and chemical products, some types of information are required by
governments.
It is better to choose a fast dyes for labeling purpose. Only fast dyes should be
used for labeling. Essential data should be in black and subsidiary data in a less
conspicuous color; red and orange and so on. For food packed in sacks, only
harmless dyes should be employed, and the dye should not come through the
packing in such a way as to affect the goods.