Page 105 - International Marketing

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BRILLIANT'S International Marketing Environment 107

export promotion policies of the country and the foreign exchange
regulations. The export order must specify the mode of payment in
unmistakable terms such as Letter of Credit, documents on payment,
documents against acceptance etc. The export order should be confirmed
by the exporter only after the terms and conditions of the L/C have been
found to be in order.
Stage-II
When the export order has been confirmed, the exporter should start
preparations for the despatch of goods. A delivery note in duplicate is sent
to the Works Manager or the Factory Manager. This note should contain
the description of the goods as per the export order along with a copy of
the instructions given by the importer. Nothing should be left to the
discretion of the Works Manager. This is what the manufacturer exporter
has to do. A merchant exporter has either to obtain the required goods
from the market or has to get them manufactured from other manufacturers.
The specifications and instructions to be intimated to the supplier of export
goods shall, however maintain the same.
Stage-III
When the goods have been manufactured and procured, the exporter
has to follow the following procedure:
1. The clearance of the Excise Authorities has to be obtained. This is
done in two ways:
(i) To make payment of the excise duty at the time of removing the
export consignment from the factory and file a claim for rebate of
duty after exportation of goods.
(ii) To secure clearance under Bond. This involves entering into a
bond under such terms and conditions as the collector of Cus-
toms may decide.
When the export goods are removed from the factory, a debit entry for
excise duty is made in the Bond Account of the exporter. This obligation
is discharged after exportation of the goods. The exporter has to prepare
two important documents: AR-4 form and invoice/challan in lieu of gate
pass which is presented to various authorities such as Range
superintendent central excise for the approval.
2. The other authority which is to be approached immediately at this
stage is the Export, Inspection Agency for conducting quality control and
pre-shipment inspection. An Inspector is deputed by the Inspection Agency
to inspect the export consignment. If the goods conform to the prescribed
specifications, an inspection certificate is issued.