Export Promotions

Chapter 20
Export promotion

International Marketing
Chapter-20 Export Promotion

Objectives
What are the organizational setup which
promotes export.
What are incentives
What are production assistance facilities
What are marketing assistance
What are import facilities for exporters
What are EPZs, EOUs, TPs, SEZs
What are export houses and trading
houses Chapter-20 Export Promotion

Introduction
Export development is important to the
firm and to the economy as a whole.
Government measures aim, normally at
the general improvement of the export
of the nation for the general benefit of
the economy.
The benefits of exports to the economy
are many.

Principle Objectives Of Export
Promotion Measures In India
1. Compensate the exporters for the high
domestic cost of production.
2. Provide necessary assistance to the
new and infant exporters to develop
the export business.
3. Increase the relative profitability of the
export business vis-e-vis the domestic
business.

Organizational Set Up
Government has established or
sponsored a number of organizations to
provide different types of assistance to
the exporters.
Apart from the organizations
established exclusively for export
promotion, there are also a number of
other institutions which assist the
export sector. International Marketing

Ministry Of Commerce
The ministry of Commerce, Government of
India, is the most important organ
concerned with the promotion and
regulation of the foreign trade of the
country.
Matters related to foreign trade are dealt
with by eight divisions in the Department
of Commerce, namely,
1. Administrative an General Division

2. Finance Division
3. Economic Division
4. Trade Policy Division
5. Foreign Trade Territorial Division
6. Exports Products Division
7. Services Division
8. Industries Division

Autonomous Bodies
1. Commodity boards
2. Export inspection council
3. Indian institute of foreign trade
4. Indian institute of packaging
5. Export promotion councils
6. Federation of Indian export organizations
7. Indian council of arbitration
8. Marine products export development
authority
9. Indian trade promotion organization

Indian Trade Promotion
Organization
The ITPO was bought into being in 1992 by
merging together the erstwhile Trade Fair
Authority Of India (TFAI) and the erstwhile Trade
Development Authority of India (TDA). The
functions of the ITPO are to
1. Develop and promote exports, imports and
upgrade technology through fair in India and
abroad
2. Compile and disseminate trade related information
3. Undertake publicity through the print and
electronic media


Attached And Subordinate
Offices
1. Office of the Director General of
Foreign Trade (DGFT)
2. Directorate General or Commercial
Intelligence and Statistics
3. Offices of Development
Commissioners, FIZ/EPZs


Incentives
Export incentives are a widely employed
strategy of export promotion.
The main aim of these incentives is to
increase the profitability of export business.
Important export incentives in India include
rebate of duties, cash compensatory support,
income tax concession, interest subsidies,
freight subsidy etc.


Marketing Assistance
Market development assistance
Foreign exchange
Trade fairs and exhibitions
Export risk insurance
Finance
Quality control and preshipment inspection
Institutional assistance
India brand equity fund

Important Facilities For
Exporters
Export promotion capital goods
Duty exemption scheme
Duty free license
Duty entitlement pass book


Export Processing Zones/EOUs
EPZs are industrial estates which form
enclaves from the national customs
territory of a country and are usually
situated near seaports or airports.


Main Objectives of an EPZ are
1. To earn foreign exchange
2. To generate employment opportunities
3. To facilitate transfer of technology by
foreign investment and other means
4. To contribute to the overall
development of the economy.


SEZs
While announcing the Exim Policy for 2000-
01, the Commerce Minister stated that India
would develop Special Economic Zones to
boost the country’s exports.
The first to SEZs are to be set up in Positra
in Gujarat.
The move to develop SEZs was inspired by
the success of the SEZs in China which
contribute about 40 per cent of her exports.

Export Houses And Trading
Houses
An export house is defined as a registered
exporter holding a valid Export House
Certificate issued by the Director General of
Foreign Trade.
The objective of the scheme is to recognize
established exporters as Export House,
Trading House, Star Trading House and
Superstar Trading House with a view to build
marketing infrastructure and expertise
required for promotion.

Summary
The success of export promotion measures
should be judged by the growth of exports
and the dynamism of the export sector.
An effective export promotion should
compensate for the disadvantages of the
national exporters and should make the
export business profitable enough to lure
entrepreneurs to this sector and achieve
the ultimate objective of boosting the
exports.

Export Promotions

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