Export-Import Mini Course

This course is designed and developed by IEIM (Institute of Export & Import Management). IEIM is a brand of Export-Import Clinic™.

 

At the outset, IEIM would like to thank you for showing your interest in the most promising career program.

 

 

 

IEIM demonstrates 100% Practical Training Course for Export-Import Business Management. It does not matter who you are or where you are from. This 100% practical training course has been professionally designed by real and industry’s veterans, who took into account the needs of those who want to make a career in the foreign trade. This course promotes a great career for all; it does not matter whether you are a job seeker, working professional or entrepreneur.

 

This course can give a person a job with a good salary. While a working professional can take good jumps or promotions in the job and an entrepreneur can earn more money without establishing a manufacturing unit.

 

I am Nand J Singh from India; I am an active entrepreneur and have been in the export-import business for years. I have been involved in export-import trade between India and various countries on the global stage.

 

I have started educational on Foreign Trade to share the real experiences that I earned during the years. I also help people to get start their bright career in this field. Sharing experience is very rare but I like sharing these valuable assets in the world. It gives me great pleasure to be a real facilitator towards your success.

 

 

Welcome to this free mini-course about “How to Manage Export-Import Business Nowadays

 

 

 

For you, I am going to cover important topics in this mini-course, these are:

 

  • My aim with this course is to make you aware of the common but most important requirements so that you can manage the export-import business.

 

  • I will also show you how the export-import business can help you in your progress.

 

  • Apart from the above, I will also discuss the risks involved in the export-import business.

 

 

Who will get benefited from this mini-course?

 

I have developed and designed this mini-course for those who really want to make a career in international business (Export-Import).  This course helps to take the first step to get closer to your success in export-import business management.  Anyone can get benefit from this course.

 

This course clarifies that export-import management is like a child's game. You will learn how to manage a difficult management operation easily.

 

 

So, why wait, start the course!

 

 

At first, I will explain what the export and import (international trade) mean.

 

There are several definitions of international trade like:

 

  1. International trade involves all business transactions in which two or more countries are included.

  2. The international trade consists of transactions that are developed and carried out across the borders to satisfy the objectives of individuals as well as organizations.

  3. International trade consists of those activities are done by private and public enterprises, which involve the movement of goods and services, knowledge, resources or skills across the national boundaries.

 

It seems that the explanation is not easy to understand.

 

Okay, I make it simple.

 

The simplest definition for international trade is “cross-border commercial activities with the exchange of money.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How does it work?

 

In this trade, a company sells the goods, services or both directly from the home country to a foreign company. This company may import the same home country from the foreign country, and then resells to several retailers and companies, or sells directly to the end-users.

 

Let’s understand with examples.

 

#1 – Exporting from the home country

 

An Indian company (merchant exporter) got the order of handbags from Dubai. Now this Indian company will buy bags (according to the standard and specification of the customer) from local producers and then sending those bags to Dubai, is known as Exporting from home country to foreign country.

 

Indian manufacturers of such bags can also sell to foreign countries.

 

 

#2 – Importing into the home country from a foreign country

 

An Indian company imports (buy/procure) raw materials (inputs), components (ready to assemble) or finished goods (ready to use) from any country in the world. A manufacturing company uses raw materials (imported) to produce finished goods. A company uses imported components to make assemblies, whereas a trading company sells the final product to retailers, other companies or directly to consumers.

 

  • Manufacturer --> imports raw materials from foreign nationals --> produces the goods in the manufacturing facility in the home country --> sells the final products to retailers, other companies or directly to consumers in the home country --> may sell it to overseas markets.

 

  • Assembler (manufacturer) --> imports components from foreign nationals --> assembles in the facility located in the home country -->  sells the final products to retailers, other companies or directly to consumers in the home country --> may sell it to overseas markets.

 

  • Trader (merchant exporter/importer) --> imports final products from foreign nationals --> sells these products to retailers, other companies or directly to consumers in the home country --> may sell it to overseas markets.

 

In the above two examples, the companies involved in international trade assist other companies in their home country. Generally, small companies do not have an export-import license or do not know how to do export or import. The difference in cultures and languages also become deciding factors. In such (above) ways both (exporting/importing and local) companies help each other.

 

 

How does export-import help?

 

Companies dealing in exports, create more jobs in the home country. They also earn foreign currencies.

 

Companies working in imports help local companies, retailers and shops not only by providing quality products at the right cost, but they also bring new products so that people in the home country have more options for buying the products.

 

Summary:

 

  • Export-import creates more jobs in the home country.

  • Export-import creates more business by providing quality products at the right price to local companies.

  • Export-import provides a wider range of products to buy. Home consumers have more options than before.

 

 

 

IEIM premium training course enables you

to deal in all dimensions of export and import.

 

 

 

I will explain why companies want to go global.

 

Please note, international business will not disappear if the world is present with different cultures, climate, age, and income groups. There are several reasons that companies want to sell their products, services or both global platforms, but I will describe here the major 5 reasons.

 

  1. To gain a higher rate of profit.

  2. First-mover advantage.

  3. High potential for growth.

  4. Local markets are small.

  5. To acquire resources.

 

 

Let’s describe one by one.

 

 

1. To gain a higher rate of profit 

 

 

When the domestic markets do not promise a higher rate of profits, business firms search for foreign markets, which promise a higher rate of profits.

 

For example, Hewlett Packard earned 85.4% of its profits from the foreign markets compared to that of domestic markets in 1994. Apple earned the US $ 390 million as net profit from the foreign markets and only US $ 310 million as net profit from its domestic market in 1994.

 

 

2. First mover advantage

 

The first-mover advantage refers that a company first introduces a product or service to the market and gaining several advantages.

 

The first-mover advantage allows a company to establish strong brand recognition and product/ service loyalty before other entries in the same category. A company also makes the high profit being a first-mover.

 

 

3. High potential for growth

 

Let’s assume a company, in the home country market, is saturating then the company have no other option but to set out on exploring the new markets at the global platform.

 

4. Local markets are small

 

Start-ups in a small country like Belgium have always looked to go global from the very beginning of the business because their local markets are small.

 

Top 10 small countries who are major players in International Business (2016) – Trade Volume in %:

 

(1) Republic of the Congo -166%

(2) Belgium - 167%

(3) Equatorial Guinea - 178%

(4) Vietnam - 179%

(5) Slovak Republic - 185%

(6) Maldives - 201%

(7) Ireland - 222%

(8) Singapore - 326%

(9) Luxembourg - 391%

(10) Hong Kong - 400%

Data source: http://www.tradeready.ca

 

5. To acquire resources

 

Manufacturers and distributors seek out products, services, and components produced in foreign countries. They also look for foreign capital, technologies, and information they can use at home. Sometimes they use this to reduce their costs.

 

For example, Disney relies on cheap manufacturing bases in China & Taiwan to supply clothing to its souvenir outlets.

 

Summary:

 

  • There are many reasons for doing international business. Companies need to identify the most appropriate purpose of going global.

  • All the reasons promise more business (profitable) than the domestic country. More businesses promise more jobs.

  • Profitable businesses always promise financial freedom.

 

 

IEIM premium training program enables you to set objectives, find target markets and profitable products for export-import. Individuals can make a great career in this field to achieve financial freedom.

 

 

Now, I will explain how to start an export-import business.

 

My answer is categorized into two parts:

 

(1) Preconditions; and

(2) Taking actions for export-import.

 

 

The preconditions to start export-import for entrepreneurs are:

 

  • If we take an example of merchant exporter-importer then they must have some free cash to buy the inputs, components or finished goods and to manage other expenses. How much money they need, it depends upon the type of products and volume they choose for trade. Obviously, they need to manage the cost of staff, storage facilities, logistics, and other associated operations. So, they must calculate the Total Cost.

 

  • They need to establish a company. And a current account in a bank that deals in foreign currencies.

 

  • They must have an importer-exporter Code (IEC). IEC is the mandatory document for sending/bringing goods, services or both from/to India.

 

  • They must register this IEC at the port of export(s) to clear the goods from customs.

 

 

After fulfilling the above prerequisites, the followings are the next actions:

 

  • Find profitable products that are in excessive demand in foreign markets (for export business). Similarly finding the foreign products that are in highly demanded in the home country, can be a good idea for earning (for import business). In both cases, it is necessary to compare the price in the local market to earn more profit.

 

  • It is imperative to arrange appropriate documents and licenses according to the nature of products. Knowing about the required documents including licenses, if any, in advance, will always be beneficial and help to reduce processing time for export-import clearance.

 

  • Find target overseas markets to sell or procure the goods. Simultaneously, one needs to find local suppliers (for export business) and buyers (for import business) accordingly.

 

  • Negotiate the quantities and best price accordingly. Also, finalize the warranty and return policy and then, sign the appropriate international selling/ buying contract. In the case of import, please make a contract with local customers, especially before paying to a foreign supplier.

 

  • Before sending the final shipment, the sample approval should not be forgotten. It will eliminate unforeseen hurdles and very helpful for a long-lasting business relationship.

 

  • Successful exporter/importer always secures the payment. So, while exporting, an exporter should choose the most secure payment method. This could be 100% advance payment or a dynamic combination of payment methods, such as; partial advance payment and balance payment against a letter of credit. If the customer insists for long credit period, the exporter should quest all possibilities to secure the payment.

 

  • Similarly, in import, the importer should be cautious before making an advance payment to the shipper. There is no exception that supplier may supply the inferior quality of products or shipper may delay exceptionally to accomplish the shipment.

 

  • Successful export-import depends upon cost-effective but effective logistics arrangement. This is the backbone of international trade. Exporter/importer should always hire suitable freight forwarder/ shipping line and packaging suppliers.

 

  • Export and import are known as cross-border trade hence both the legs (export and import) attract customs formalities. One should hire a customs broker who does all paper works on behalf of exporter/importer. Your life will be easy.

 

  • Some countries allow export assistance to exporters after successful repatriation and realization of export proceeds. The exporter should not forget to claim it from the related department/ authorities. Similarly, in import, the importer may save a good amount on import duty if he/ she knows how to claim this duty exemption.

 

 

 

The IEIM premium-training program enables you to manage and handle all of these formalities. Managing the export-import business will no longer be a hindrance to you.

 

 

 

 

So far you have learned two lessons, these are:

 

1. Why does a company start an export-import business? and

 

2. How to do an export-import business?

 

 

 

Now, I will explain why one should take 100% practical training for export-import business management.

 

 

There is no doubt that the management of the export/import business is complicated than doing business in the domestic market. The domestic market is regulated by certain laws and regulations, while the international market attracts many laws, rules, regulations, and procedures. The domestic market deals in the single currency, while international trade deals in many currencies. The domestic market is homogeneous, while the international market is heterogeneous.  

 

More important, in international trade there is need of a comprehensive agreement to protect both parties revenue interest, like; delivery of right products in the right quantity with the best fit for use, receipt of payment on time, handling quality issues and distribution of each party role and responsibilities including arbitration.

 

Before starting export-import business one must clear all these doubts and operational hurdles.

 

I want to recommend learning about export-import before starting the journey in this area, which will always be a good idea. 100% practical training can save from costly mistakes and precious time.

 

A better understanding of the practical knowledge of the followings topics, as outlined below, which directly relate to export-import operations will help increase the chance of success in export-import business management. These are:

 

 

  1. Basic planning and success factors.

  2. Arranging/ applying necessary licenses and permissions.

  3. Finding target overseas markets for sale and purchase.

  4. Finding profitable products.

  5. Finding real buyers and genuine suppliers.

  6. Proper communication with supplier and buyers.

  7. Proper costing and pricing to reduce the risk of profitability.

  8. International Commercial Terms, UCP & ISBP.

  9. Knowing the international norms for a comprehensive agreement with buyers/suppliers.

  10. Knowledge of Foreign Trade Policy and Procedures.

  11. Knowledge of exporting country taxation norms.

  12. Knowing the trade facilitators.

  13. Comprehensive knowledge about product classification.

  14. Knowing about financial instruments to secure payment.

  15. Advance Export-import documentation including commercial and regulatory documents.

  16. Letter of Credit

  17. Insuring the goods and payment.

  18. Effective international logistics.

  19. Managing inventory.

  20. Claiming export assistance.

  21. Knowing the tariff, tools, licensing and authorization to reduce import duty.

  22. Foreign exchange management.

  23. Compliance management.

  24. MIS and control sheets.

  25. International method of record keeping.

 

 

Now, I will explain the major risk involved in the export-import business.

 

The export-import business promotes a great career and more earnings than the domestic market, but it is very risky with half-knowledge.

 

Like any business transaction, the risks associated with the goods exported in the foreign market are also linked. The risks involved in foreign trade are quite different from the risks involved in domestic trade.  So, taking extra measure becomes very important before entering into export-import.

 

For example, securing payments is one of the main risks, especially when it is paid in advance.

 

Proper risk management is mandatory to become successful in export-import. There are various types of export risks involved in foreign trade, which need to be addressed properly before entering the export-import. These are as follows:

 

  • Credit Risk

  • Quality Risk

  • Logistics Risk

  • Legal Risk

  • Political Risk

  • Unforeseen Risks

  • Exchange Rate Risks

 

 

With proper implementation, a proper risk mitigation plan can give you success in international trade.

 

 

 

Risk management is an analytical process of thinking about all the undesirable consequences that would prevent risks from happening.

 

The IEIM premium-training program enables you to make appropriate risk mitigation plan.

 

 

 

 

 

 

Take away

 

  • Successfully managing export-import depends on the well-drafted business plan. An intensive SWOT analysis will be a boon.

  • If you want to succeed in export-import, then you need to identify the profitable product.

  • Research is essential to identify the target market. Anyone can shoot the ball but cannot win the game without the goal post.

  • Professional communication plays an important role in export-import business management.

  • Practical knowledge with efficiency in foreign trade policy, procedure, customs law, foreign exchange management, international logistics, documentation, INCOTERMS, letter of credit, risk management are the key factors for success in export-import business management.

 

 

Learning is a never-ending process.

 

I have tried my level best to give maximum knowledge about export-import business management through this mini-course. Of course, International trade is huge, where 100% of practical knowledge is necessary for success. One should take it from an expert.