international trade procedures and documentation

IILM Graduate School of Management, Greater Noida.

Course Manual : International Trade Procedures and Documentation

Academic Year : PGDM(IB) 2011-2013

Dr. Himanshu Mohan : [email protected]

INTRODUCTION TO THE COURSE

During the last few decades world trade has grown phenomenally in terms of volume as

well as value. After liberalization their has been a gradual increase in the classification and

direction of exports and imports. Superior commodities, services at competitive prices has

opened the doors of world markets for goods and services. The spurt in world trade has

evoked interest to many to learn about different dimensions of international trade.

This course has been designed to enable the students to have a clear understanding of

framework of Export Import Trade , various documents related to procedures in exporting

and importing ,export shipment procedures, export finance and export incentives. In a

nutshell the course will prepare the students for exporting and importing.

Following are the key elements of this course

1. Foreign Trade – Institutional Framework and Basics

2. Export Import Documentation

3. Export Shipment Procedure

4. Methods and Instruments of Payment

and Pricing Inco terms

5. Methods of Financing Exporters

6. Export Incentives

7. Shipping and Containerization

On successful completion of this course you will be able to:

-- Understand the various issues related to globalization and their importance to make an organization successful.

--Understand the steps, procedures and formalities in export business and its applications.

-- Be able to develop exporting skills

-- Analyze and solve cases in globalization and export management.

INTRODUCTION TO THE TUTOR

Dr Himanshu Mohan : He is a B.Tech, MBA & PhD. He has seventeen years of

teaching , and corporate experience wherein he has offered courses in International

Business and Marketing areas namely Export Import Documentation, International

Marketing, International Sales Management, International Business Management,

Marketing Management, Logistics Management, Global Services & Outsourcing. His

research interest is in the area of Sales Management and Green Marketing. He has also

handled training programmes in the area of Sales Management and Customer Services.

Has been associated with various academic institutions like IILM GSM, Greater Noida ,

IILM Lucknow ,IMS Dehradun, Jaipuria Institute of Management, Ghaziabad in various

capacities as Program Director, Deputy Director and Director . In the Corporates he has

worked with LG Electronics and Hindustan Lever Ltd(Industrial Division) for around six

years handling engineering, marketing, applications functions and business operations

for Uttar Pradesh and some other parts of North India.

BOOKS AND REFERENCES:Main Text Book

1) Export and Import Management by Justin Paul and R. Aserkar, Oxford Press

Reference Readings

1) International Business - Competing in the Global Market place by Charles

Hill and Arun Jain, Tata McGraw Hill

2) Export and Import Management by Aseem Kumar, Excel Publications,

3) International Trade and Export and Management by Francis Cherunilam,

Himalaya Publishing .

4) International Marketing and Export Management by Gerald Albaum, Edwin

Duerr and Jesper Strandskov, Pearson

Journals:

Journal of International Business

Foreign Trade Review

WTO Focus

Journal of World Trade

Session Plan – Lectures

S.No.

TOPICS LECTURES

TOTAL

1 Foreign Trade – Institutional Framework and Basics 3 3

2 Export Import Documentation 6 6 3 Export Import Strategies 3 34 Methods and Instruments of Payment and Pricing Inco

Terms3 3

5 Methods of Financing Exporters 2 26 Export Incentives 3 37 Shipping and Containerization 4 4

TOTAL 24 24

Weekly Plan

Weeks Topic Covered Sessions1-3 1, 2 1- 94-5 3,4 10-156-9 5,6,7 16-24

Detailed Session Plan – International Trade Procedures and Documentation

Topic 1 : Foreign Trade – Institutional Framework and Basics

Sessions 1-3 : In these sessions there will be discussions about the role and

impact of various Global and Indian Institutions reqd. for foreign trade.

Pre-Reading

CH 1, Export Import Management by Paul and Aserkar

Question for discussion in class

“Effect of Govt. Bodies on export Scenario.

Learning Outcomes:

At the end of the session, the student should be able

to identify the role of Govt, Semi-Govt and Private Institutions and .

organizations in promoting exports

Topic 2 : Export Import Documentation

Sessions 4-9 : In this sessions initially there will be discussions on the

various steps in an export process sequentially. Further their will be detailed

discussions on the registration process with various bodies , commercial documents

required for exporting, regulatory documents required for exporting and importing

various commodities and services.

Pre-Reading :

CH 2 and 5, Export Import Management by Paul and Aserkar

Questions for discussion in class :

“ How to become an export oriented entrepreneur?”

“Is IEC No a must for everyone who wants to be in export business ? Or there are exceptions also.”

“Different Invoices , Different Importing Countries, Discuss.”

Case discussions :

Caselet : Steering the Indian Seafood Industry Ahead

Case: A global manufacturing hub in the making.

Caselet: Kelkar and Alpha Tyres

Learning Outcomes: At the end of the sessions, the students should be

able to understand the step by step procedures of exporting business. The students

would be knowing the registration requirements to obtain an IEC number to be entitled

for export business. They will also be able to make and use proper and accurate

commercial and regulatory documents and their applications required for export and

import business.

Topic 3 : Export Import Strategies

Sessions 10-12 : In these sessions the students will be understanding the

business plans and various export-import strategies adopted by organizations.

Pre-Reading

CH 4 , Export Import Management by Paul and Aserkar

Question for discussion in class :

“Export Strategies for Dairy products in India”.

Learning Outcomes:

At the end of these sessions, the students would be able to formulate successful

export strategy to achieve global competitiveness.

Topic 4 : Methods and Instruments of Payment and Pricing Incoterms


various methods and aspects of Instruments of Payments . Also they will understand

the various International Contract Terms used.

Pre-Reading


Case discussions :

Caselet :

“Pricing EXIM Incoterms”.

Learning Outcomes:

At the end of these sessions, the students would be able to formulate various types of

Letters of Credit and other Instruments of Payments and apply the various

International Contract Terms in export usage.

Topic 5 : Methods of Financing Exporters


Basics of Export Financing and develop a deep knowledge about pre-shipment and

post–shipment finance patterns.

Pre-Reading


Learning Outcomes:

At the end of these sessions, the students would be able to know the ways to arrange

finance pre and post shipment for the various export obligations.

Topic 6 : Export Incentives

Sessions 18-20 : In these sessions the students will be knowing about the various

export incentive schemes given by the Govt of India and its allied bodies for various

export obligations.

Pre-Reading


Learning Outcomes:

At the end of these sessions, the students would be able to know the ways to benefit

from the various export incentive schemes while exporting various commodities and

services to different countries.

Topic 7 : Shipping and Containerization

Sessions 21-24 : In these sessions the students will be understanding the various

characteristics of shipping industry and the role of intermediaries involved in logistics

and shipping industry. The students will also be learning about the various concepts in

containerization.

Pre-Reading

CH 10,11,12 , Export Import Management by Paul and Aserkar

Case discussions :

Caselet : Shipping Conference VS Shippers Council

Learning Outcomes:

At the end of these sessions, the students would be able to know the structure and

benefits accruing from shipping industry. They will also be learning about the various

types of containers and their usage and advantages.

ASSESSMENT PLAN

Assessment Method Weight age ( %) 1. Class Test 202. Project /Viva Voce 20 2. End Term Examination 60

TOTAL 100

DETAILS OF ASSESSMENT

COMPONENT 1: CLASS TEST (20%)

A Class Test of 1 Hour comprising of a Caselet and applicatory questions to test the understanding and application based knowledge of the student.

COMPONENT 2 : PROJECT /VIVA VOCE (20%)

FORMAT FOR SUBMISSION OF PROJECT Project components must be submitted according to the deadline specified in the table below, or by the instructor at the beginning of the module. The documents must be submitted to the instructor before 4 pm on the day of submission. Failure to submit without good cause (illness supported by a medical certificate or similar) will result in a zero mark. Submissions are to be made in hard copy or soft copy - as instructed by the faculty.

When submitting coursework in hard-copy, you must include a cover page which specifies: • The component name • Your name / group member names • Student ID number (s) • Your section • The Module title • The name of the module instructor

When sending documents on e-mail, you must ensure the following: • Subject Line to read "component name_your name_your section" • Body of the email specifying the enclosed attachments and your details (name (s), student ID number (s), section)

COMPONENT 3 : END TERM EXAM (60%)

A three-hour, closed book end term examination will be held at the conclusion of the course. The examination will test students' theoretical understanding through questions and their ability to apply various concepts to business problems, through case-lets.

Feedback on students' performance in the exam will be provided when answer scripts are shown to students after a month of the exam.

Assessment Map

This table shows main assessment methods which are used across module and its stages:

Methods of AssessmentModule A1 A2 A3 A4 A5

* * * *

Notes:A1: Individual test/ AssignmentA2: Group Assignment/ ProjectA3: Open Book ExaminationA4: Close Book ExaminationA5: Group Presentation

Teaching Map

This table shows main delivery methods which are used across module and its stages:Methods of Delivery

Module T1 T2 T3 T4 T5 T6* * * *

Notes:T1: LecturesT2: Seminar/ TutorialsT3: Live Projects & PresentationsT4: Case DiscussionT5: Guest Lectures/ Industrial VisitsT6: Lab Session

Curriculum Map

This table shows the main learning outcomes which are developed and/or assessed in this module:

Methods of DeliveryModule L1 L2 L3 L4 L5 L6 L7 L8 L9

* * * * * * * *

Notes:

L1: An understanding of organizations, their external context and their management.L2: An awareness of current issues in business & management which is informed by research & practice in the field.

L3: An understanding of appropriate techniques sufficient to allow investigation into relevant business & management issues.L4: The ability to acquire & analyze data and information.L5: The ability to apply relevant knowledge to practical situation.L6: The ability to work & lead effectively in a team based environment.L7: An improvement in both oral & written communication skills.L8: Be cognizant of the impact of their individual & corporate actions on society and recognize ethical business practices.L9: Be sensitive to the social economic and environmental responsibilities of business.