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Using competitive tools for Import Sourcing Which products and services should I procure domestically? Which products can actually be procured internationally? How high should the proportion of foreign components be? Should I procure the entire final assembled product? Should I import raw material and assemble it domestically?   Foreign Trade Consultancy Services IIFT Certified Export Import support International Trade Analytics Global Market Intelligence Verified Buyer - Seller Connect Govt. Schemes claim support DGFT / IE Code / RCMC Services

  Checking Trade Intensity Index (TII) Trade Intensity Index is based on an actual observation of bilateral trade flow, and it measures the intimacy of the trading relationship between any given two countries. Higher is the Trade intensity Index, better will be our export possibility and therefore an exporter should choose the market with high TII values.

Strategizing Export Market Options with OPOD – NPOD / OPND -      NPND OPOD - Old Product Old Destinations: Targeting traditional products like Leather, Gems, Textiles to the older traditional markets like USA, Europe, UAE using offline mode. NPOD - New Product Old Destinations: Shifting to newer products like Technical Textiles from the traditional Textiles to the same markets. OPND - Old Product New Destinations:Targeting traditional products like Leather, Gems, Textiles to the newer markets using the FTP and the Regional Trade Agreements signed by India with those countries. NPND - New Product New Destinations: Targeting new products like Sports Goods, Drugs, Technical Textiles to destinations like CIS, Africa, ASEAN and so on.

Interpretation of SHI & RHI value If you are an established firm or a start-up in the export business, you first need to check the 2 sisters SHI and RHI.  A. Sectoral Hirschman Index (SHI): SHI is calculated by mapping the value of exports against the products being exported then share is calculated for each product as a percentage of the total value of exports.  B. Regional Hirschman Index (RHI): This is calculated by mapping a specific country's exports against different destinations. 

You need answer the following questions before you enter into any global marketA. What type of product are you selling ?B. Is it acceptable in the global market? C. Does it have price competitiveness? D. Are you availing the right government schemes? E. Are you targeting the right market?F. Are you customizing the product as per the customers requirement?G. What is the size of the world market for a product? H. What are the trends for that market – i.e. is the market growing and by how much?I. With which countries does my country currently trade for certain products?J. Are there opportunities to identify new or alternative markets?K. What tariff barriers exist in a specific market?L. Which countries compete to supply to a specific market and to the world?

Checking India’s RCA value across products An exporter will need to know the comparative advantage of the product he needs to export. For this a competitiveness tool has been used namely Revealed Comparative Advantage (RCA). RCA use the trade pattern to identify the sectors in which an economy has a comparative advantage, by comparing the country of interests’ trade profile with the world average and is therefore defined as a country’s sectoral share divided by the world sectoral share.  Business Interpretations of RCA values for an exporter  Values of RCA more than 1 indicate the strength of numerator more than the denominator which is indicative of India’s presence being better than the other suppliers of the same commodity in the world. Hence as first step sectors with more than 1 value of RCAs are picked up from amongst the lot. RCA value of 2-15 is best suited for a startup firm.

To understand the benefit of an RTA, we need to first understand the concept of WTO MFN status. The World Trade Organization which was signed between many countries in Jan 1995 brings forth a concept of “Most Favored Nation” which means that if the exporting country and the importing country both are WTO members then the importing country will give equal treatment to all the exporting country in terms of both tariff and non-tariff barriers. Trade Agreement is nothing but a legal binding between two or more countries wherein the trading countries commits certain benefits only to their signing Partners which is not to be availed by countries outside the Agreement. This benefit can be extended to Goods - (in terms of offering a Lower or Zero Import Duty to the imports coming from countries within Agreement) - Services or Facilitation of investment and many more benefits.

An important stage after manufacturing of goods or their procurement is their preparation for shipment which involves packaging and labeling of goods to be exported. Proper packaging and labeling not only makes the final product look attractive but also saves a huge amount of money by saving the product from wrong handling the export process.

If you are an established firm or a start-up in the export business, you first need to check the 2 sisters SHI and RHI. A. Sectoral Hirschman Index (SHI): SHI is calculated by mapping the value of exports against the products being exported then share is calculated for each product as a percentage of the total value of exports. B. Regional Hirschman Index (RHI): This is calculated by mapping a specific country's exports against different destinations.

REGIONAL INSTITUTE OF INTERNATIONAL TRADE is a contemporary institute offering International Trade Analysis services to various government and non-government organizations. Our company is involved in the preparation of market analysis reports across the country and globally. We are dealing in various types of export-oriented services at affordable prices.   We offer accurate international trade analysis reports after complete data collection and verification by our experts. Established in 2020, we have offered our services to various organizations to help them in taking adequate export-related decisions. We have achieved expertise in the field and offer excellent services as per international quality norms at affordable rates. Mr Rahim Itaz, the founder of the institute has gained an excellent position in the service industry for offering excellent trade analysis reports.   Basic Course Certificate In International Trade – (CIT) & Title Of The Course Export Orientation Export Gist Itc Hs Codes Connotation Of Gst In Exports Roles Of Bank In International Trade Export Stages - Preliminary / Pre-Shipment / Shipment / Post-Shipment  Export Pricing Strategy Incoterms 2020 Documents In International Trade Export Payment Methodology  Letter Of Credit - Lc Export Risk Management Regional Trade Agreements (RTA) Export Finace - Pre Shipment   Export Finace -  Post Shipment  Government Export Institutions Government Foreign Trade Policy  Government Export Incentive Schemes Shipping And Logistics  Success Mantra For Exports Finding Overseas Buyers Through Reliable Platforms  

  The next step of an entrepreneur should be to quickly view the Foreign Trade Policy of India and check the status of his product.      A. OGL: OGL stands for Open General License: In case your product is listed in this category, you are free to export following the guidelines detailed in chapter 2. FTP indicates “Exports and Imports shall be ‘Free’, except when regulated. Such regulation would be as per FTP and/or ITC (HS’). Prefer to choose the product under this category to avoid any hassle.  B. Restricted: These are the products Permitted to export subject to licensing. These goods may be exported or imported only in accordance with a license issued in this behalf.However, there are separate sets of items which may be exported without a license but subject to terms and conditions specified in the Handbook of Procedures List of such products is listed in Annexure II.  C. Canalized items: These are the products exports of which are permitted ONLY through Canalizing Agencies specified in the negative lists. The agencies include MMTC for gold, NAFED and STC for agro products including onion, rice, wheat etc. DGFT may, however, grant the license to any other person to import or export any canalized goods. D. Prohibited Goods: The term “Prohibited Goods” has been defined in sub-section 33 of Section 2 of the Customs Act thereby meaning “any goods the import or export of which is subject to any prohibition under the Customs Act or any other law for the time being in force”. Import and export of some specified goods may be restricted/ prohibited under other laws such as Foreign Trade (Development& Regulation) Act, Foreign Trade Policy, Environment Protection Act, Wild Life Act,The Foreign Exchange Management Act, The Trade Marks Act, Arms Act, Drugs OGL Restricted Canalised Prohibited 14 & Cosmetics Act, etc. Prohibitions under those Acts will also be treated as Prohibitions under the penal provisions of the Customs Act, rendering such goods liable to confiscation under section 111(d) of the Customs Act (for import) and 113 (d) of the Customs Act (for export).

Analyzing of Import Penetration Index (IPI) We need to understand that the best suited market for your product will be the one where the imports are not re-exported but are imported for the purpose of domestic consumption. Only such markets make sense for you considering the sustainability of the import demand. To estimate this aspect of an importing country, we calculate an index termed as “Import Penetration Index” (IPI).

Choosing the right product to be exported by an entrepreneur is the first intelligent step he needs to take. For this, the Harmonized System of code needs to be identified. HS stands for Harmonized Commodity Description and Coding System. The HS is the international standard for reporting goods to customs and other government agencies. It is a numeric language that is used by more than 180 countries worldwide, and almost 100% of international trade.

Choosing the right product to be exported by an entrepreneur is the first intelligent step he needs to take. For this, the Harmonized System of code needs to be identified. HS stands for Harmonized Commodity Description and Coding System. The HS is the international standard for reporting goods to customs and other government agencies. It is a numeric language that is used by more than 180 countries worldwide, and almost 100% of international trade. 

The era of globalization proves that the Export and Import (EXIM) activity is crucial to any country; especially to India's economic health as India can generateadditional employment opportunities for the country through the exchange of Goods, Services and Ideas, and it also helps to bring precious foreign exchange to the nation. Greater EXIM operations mean more economic growth as natural and physical resources of the country are effectively exploited, managed, used and traded, resulting in employment generation, foreign exchange accumulations, improved living standard, capacity enhancement in manufacturing and infrastructure and increased status of the country in global economic, political and social issues.The FTP of India is also shaped for making India a global manufacturing, trading and services hub. To compete in world trade; our government has given some schemes to import raw materials, capital goods without paying duties and other taxes to our exporters; such as Advance Authorisation Scheme, Duty Free Import Authorisaton, Export Promotion Capital Goods, Duty Drawback and so on.

Scanning Global Market Opportunities You need answer the following questions before you enter into any global market A. What type of product are you selling ? B. Is it acceptable in the global market?  C. Does it have price competitiveness?  D. Are you availing the right government schemes?  E. Are you targeting the right market? F. Are you customizing the product as per the customers requirement? G. What is the size of the world market for a product?  H. What are the trends for that market – i.e. is the market growing and by how much? I. With which countries does my country currently trade for certain products? J. Are there opportunities to identify new or alternative markets? K. What tariff barriers exist in a specific market? L. Which countries compete to supply to a specific market and to the world?

A geographical indication (GI) is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. In order to function as a GI, a sign must identify a product as originating in a given place.

Analyzing Export Propensity Index (EPI) EPI denotes the overall degree of reliance of domestic producers on foreign markets. Higher the EPI, tendency of domestic producers to export as against selling in domestic market is predominant. Hence higher EPI would indicate acceptance of Indian exports in the world market on one hand. On the other, it also indicates less competition in the domestic market. Hence an export startup should pick up the sector with high EPI, operate for a few years in the domestic market without much competition and then plunge into the export market which in any case is promising.

Strategizing Export Market Options with OPOD – NPOD / OPND -      NPND OPOD - Old Product Old Destinations: Targeting traditional products like Leather, Gems, Textiles to the older traditional markets like USA, Europe, UAE using offline mode. NPOD - New Product Old Destinations: Shifting to newer products like Technical Textiles from the traditional Textiles to the same markets. OPND - Old Product New Destinations:Targeting traditional products like Leather, Gems, Textiles to the newer markets using the FTP and the Regional Trade Agreements signed by India with those countries. NPND - New Product New Destinations: Targeting new products like Sports Goods, Drugs, Technical Textiles to destinations like CIS, Africa, ASEAN and so on.  

The effective rate of protection is used to estimate the protection really afforded to domestic producers at each stage of production, i.e., how much extra they can charge and still be competitive with imported goods. If the total value of the tariffs on imported inputs exceeds that on the output, the effective rate of protection is negative, i.eThe industry is discriminated against in comparison with the imported product.

Exporting a product from one country to another is not just a trading; but involves various measures like the regulations of the importing country in which an exporter should keep in mind before he makes any effort to ship the product. As per the law of their nations, the said exportable product could have been prohibited or restricted for entry into their market, or they have various regulatory measures such as Tariff and Non-Tariff Barriers; which should be thoroughly studied and compiled upon.

To Checkmate L1, L2 and L3 Competitors L1 Player is your local competitor in the domestic markets L2 Player is your global competitor in the international markets L3 Player is the domestic companies operating in your importing countries

Trade Intensity Index is based on an actual observation of bilateral trade flow, and it measures the intimacy of the trading relationship between any given two countries. Higher is the Trade intensity Index, better will be our export possibility and therefore an exporter should choose the market with high TII values.

The next step of an entrepreneur should be to quickly view the Foreign Trade Policy of India and check the status of his product. A. OGL: OGL stands for Open General License: In case your product is listed in this category, you are free to export following the guidelines detailed in chapter 2. FTP indicates “Exports and Imports shall be ‘Free’, except when regulated. Such regulation would be as per FTP and/or ITC (HS’). Prefer to choose the product under this category to avoid any hassle. B. Restricted: These are the products Permitted to export subject to licensing. These goods may be exported or imported only in accordance with a license issued in this behalf.However, there are separate sets of items which may be exported without a license but subject to terms and conditions specified in the Handbook of Procedures List of such products is listed in Annexure II. C. Canalized items: These are the products exports of which are permitted ONLY through Canalizing Agencies specified in the negative lists. The agencies include MMTC for gold, NAFED and STC for agro products including onion, rice, wheat etc. DGFT may, however, grant the license to any other person to import or export any canalized goods.D. Prohibited Goods: The term “Prohibited Goods” has been defined in sub-section 33 of Section 2 of the Customs Act thereby meaning “any goods the import or export of which is subject to any prohibition under the Customs Act or any other law for the time being in force”. Import and export of some specified goods may be restricted/ prohibited under other laws such as Foreign Trade (Development& Regulation) Act, Foreign Trade Policy, Environment Protection Act, Wild Life Act,The Foreign Exchange Management Act, The Trade Marks Act, Arms Act, Drugs OGL Restricted Canalised Prohibited 14 & Cosmetics Act, etc. Prohibitions under those Acts will also be treated as Prohibitions under the penal provisions of the Customs Act, rendering such goods liable to confiscation under section 111(d) of the Customs Act (for import) and 113 (d) of the Customs Act (for export).