EID/U1 Topic 1 Introduction to Exports
Export business is prevalent around the globe and in recent times it has grown at much faster rate due to globalisation process. Export means transaction of products and services from one nation to other following legal rules for trade purposes. Export goods are given to international end users by domestic producers. Export management is the use of managerial process to the serviceable area of exports. It is basically associated with export activities and type of management that brings harmonization and incorporation of an export business. Export management is concerned with export orders and accomplish objectives to successfully complete in time as per the requirements given by the overseas buyers. The main purpose of export management is to secure export orders and to make certain for timely delivery of goods as per agreed norms of quality and other specifications including terms and conditions agreed to between the exporter and the importer.
Categorization of Export
The export can be grouped into many sections such as Merchandise Exports, Services Exports, Project Exports, and Deemed Exports.
A merchandise export is related with the export of physical goods, for example, readymade garments, engineering goods, furniture, and works of art. Service Exports denotes to the export of goods that don’t exist in physical form, that is, professional, technical or general services. Examples of the exports would include export of computer software, architectural, entertainment or technical consultancy services. Project export means to develop a project by a business firm in a different nation. It is viewed as systematically evolved work plan devised to achieve a specific objective within a specific period of time. Deemed Exports refer to those transactions by the recipient of the goods in which the goods are made in India. The necessary condition is that such goods are manufactured in India. This category of export has been introduced by the Export Import Policy of the Government of India. Some of the examples of goods that are considered as Deemed Exports, as given in Export-Import Policy (2002-07) are supply of goods against duty free licenses, Supply of goods to projects financed by multilateral or bilateral agencies/Funds notified by the Department of Economic Affairs, Ministry of Finance, Government of India and supply of goods to the power, oil and gas including refineries.
Function of Export Manager
Export manager has important role in managing business for international orders. They must be competent to perform export business. The conventional management structures with functional classification such as purchases, marketing, finance, accounts, administration, cannot make certain efficiency in export management through all stages in the export phases. Therefore, export manager is needed to successfully conduct export business operation. The basic role of an export manager is to bring about synchronization and integration of the export transaction from within the established management structures and concerned external agencies to guarantee timely delivery of goods as per the specifications of purchaser. The export manager is accountable for the successful completing of the order in terms of time, cost and technical performance. He must provide the guidance necessary to connect the people and groups from dissimilar departments working on the export order, into one team in a managerial organisation and provide the drive necessary to complete the task on time and within cost. He must have good understanding of the techniques applied in export planning, financial management, inventory management, merchandising, risk management, foreign exchange operations, exchange control, negotiation with banks information systems, communication, personnel management and industrial relations, co-ordination and control. The efficiency of export manager will depend upon the extent of authority delegated to him by the senior management.