AED-01 Export Procedures & Documentation (IGNOU Assignment Question)
Discuss the institutions providing technical and specialised services for the promotion of export in India.
Individual corporate export marketing efforts must also be bolstered by a number of technical and specialised service inputs. These include crucial and important areas such as packaging, quality control, risk coverage, marketing, and finances. Let’s now examine them in depth.
Indian Institute of Packaging
Packaging plays a crucial role in export marketing. The task has been rendered extremely complex and challenging because of the conflicting nature of expectations from foreign buyers. Invariably, they insist on a very strong and sturdy package on the one hand to ensure the physical safety of the goods. At the same time, they insist on a package to be extremely easy to unpack. Good packing reduces the unpacking labour cost as well as saves time. Hence, the Government of India has established the Indian Institute of Packaging to render assistance, advice and guidance to help Indian exporters effectively tackle the challenges on the packaging front.
The Institute is primarily engaged in organising training programmes on packaging technology. It has been recognised as an agency for testing and evaluation of packages for hazardous cargo and authorisation for UN certification for exports. It is engaged in developing national standards of packaging and eco-friendly packages. It has been identified to act as the coordinating agency for the introduction of Bar Coding technology in the country, with special emphasis on the export of Indian goods.
Export Inspection Council and Agencies
The export inspection agencies established by the Council certify the quality and export-worthy aspects of the manufactured and processed products exported from India. In this way, the Government of India indirectly assure the foreign buyers about the quality and export worthiness of the products exported from India. This has been made a statutory requirement.
Regular exporting units are also being declared as export-worthy units, subject to periodical inspection by the export-inspection agencies. In addition, these agencies also provide guidance and advice to individual export firms regarding technical standards and specifications required for servicing export markets the world over.
Export Inspection Agencies have also been authorised to issue the GSP certificate of origin, which enables exporters from India to be eligible for preferential duty concessions in the markets of developed countries from West Europe, North America, Japan, Australia and New Zealand, etc. The Export Inspection Council has set up a pilot test house in Mumbai for prompt, efficient, accurate and comprehensive testing of engineering products, particularly from small-scale sectors. It also offers technical support facilities to the industry. The EIC has also set up the Quality Development Centre at Madras to provide training to the inspection officers. It has also evolved procedures for assessment, evaluation and settlement of
complaints from foreign buyers.
Export Credit and Guarantee Corporation
The government of India have established Export Credit and Guarantee Corporation. The ECGC insures the risk of non-payment by foreign buyers and the political risk of blockage of transfer of funds. The corporation assists the exporters through special schemes such as an Assistance packing credit guarantee, post-shipment credit guarantee and export finance guarantee. The task of an exporter in India has therefore been rendered free from such risks.
Moreover, as an additional service, the ECGC also guarantees the commercial banks providing working capital for financing export-business. Consequently, individual export-firm in India finds it relatively easy to arrange for necessary financial support from the banks for undertaking export business. As regards the risk of physical damage to the export cargo, the General Insurance Corporation of India provides essential marine insurance which covers Indian exporters.
EXIM Bank for Long-term Credit
Project exports, turnkey jobs and joint ventures, including complete plant and equipment or heavy machinery supply, have become increasingly important in international business.
Realising the export potential for India in this field, the Government of India have established the Export-Import Bank of India to provide the necessary credit lines for the same. The bank provides assistance through buyers’ credit, sellers’ credit, line of credit or venture capital. It helps Indian exporters to increasingly undertake exports of projects and turnkey jobs or joint ventures in overseas markets. It also helps in promoting exports of technical consultancy as well as construction services, as these are very much linked with projects and turnkey jobs.
Indian Council of Arbitration
ICA offers arbitration services for all types of Indian and international commercial disputes through its international panel of arbitrators comprised of eminent and seasoned individuals from a variety of industries and professions. ITPO is a government organisation that promotes the nation’s exports.
Federation of Indian Export Organisations (FIEO)
The Federation of Indian Export Organisations(FIEO) functions as the coordinating body far various Export Promotion Councils and other service institutions established by the Government for trade promotion purposes. The Federation is the primary servicing agency to provide integrated assistance to Government recognised export houses. It emphasises on intra and inter-regional cooperation in trade and economic matters to promote harmony and understanding through economic, trade and technical ties. In addition, the national-level trade and industry associations like the Federation of Indian Chambers of Commerce and Industry (FICCl), Associated Chamber of Commerce (ASSOCHAM) and Confederation of Engineering Industries (CEI) also play the coordinating role in advocating the viewpoint and promoting the interests of the sectors they represent.
India Trade Promotion Organisation (ITPO)
India Trade Promotion Organisation was formed by merging the Trade Fair Authority of India and the Trade Development Authority. This is the premier trade promotion agency of the Government of India, with its headquarters in New Delhi. It has also set up offices abroad in New York, Frankfurt, Tokyo and Dubai; ITPO is a service organisation that maintains close interaction with trade, industry and the Government. The organisation serves the industry by providing marketing information and support for participation in fairs. It also helps in developing exports of new items and uses its network of offices in India and abroad for improved trade-related services.
Indian Institute of Foreign Trade
As an apex institution at the national level, the Indian Institute of Foreign Trade (IIFT), established by the Government of India, functions as the main institution for export marketing intelligence. IIFT performs the following functions:
Store-house of market information: It functions as a store-house of export-marketing information, product and market-wise. It has conducted market surveys in every part of the world, identifying export opportunities for the entire export sector.
Provides international business management training: In addition, the ILFT has been the pioneer and premier institution offering international business management education programmes, including basic and in-service education. Being a Government institution also offers training programmes for the Government of India service personnel from the Indian Foreign Service, Indian Administrative Service, Central Trade Service and Indian Economic and Statistical Service.
Advises government on trade policies: An important function of the Institute has been to advise the Government of India on all aspects of foreign trade policies, strategies and operations. Being a premier institution, it is frequently approached for necessary advice and guidance by other export-service organisations, including export promotion councils as well as individual export corporate units.
National Institute of Fashion Technology (NIFT)
The National Institute of Fashion Technology, New Delhi, has been established for human resource development for the garment industry. It conducts professional programmes in Apparel merchandising and marketing, fashion design and garment manufacturing technology. It offers training through workshops and consultancy services. It has entered into a technical agreement with the Fashion Institute of Technology, New York and the Nottingham Polytechnic, UK.