Friday, 21 July, 2017
EPCH is an apex organization of trade and industry for promotion of handicrafts and is credited with organizing Asia's largest Handicrafts & Gifts Show.
  ENTERING EXPORT MARKET
Q 1.
How one can enter Export Market?
Ans
Before entering into Export Market it isnecessary that the product to be exported first should be selected and then themarket to be approached should be identified.
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Q 2.
How product for export can be selected?
Ans
Selection ofproduct for exports mainly depends on the following considerations:
  • An overview of exports of Indian Handicrafts and its trends in the past & future forecast (Please click here)
  • Export statistics of the product can also be studies to find out which products are already importing from India.
  • Detailed export statistics (Please click here)
  • Direction of export of product
  • Best examples of products ( (Please click here)
  • Either the exporter should be manufacturer of the product or he can be an agent of the product or he should have a tie-up with manufacturer / supplier so that there is no problem in export after obtaining the order and that there is proper coordination about prices and supplies etc.
  • The products so selected should be available for exports and there should not be any frequent fluctuations in cost and price.
  • There should not be any restriction on export of this product.
  • There should not be any cut throat competition with others viz manufactures / suppliers for export of this product.
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Q 3.
How to select the market?
Ans
Selectionof market for the product identified can be made in the following ways:
  • Approachthe Export Promotion Organisation concerned for advice on the market to beapproached of selected product. NormallyExport Promotion Organisations [ EPO's ] / Export Promotions Councils [EPC's] have this kind of information.
  • Makepreliminary study on the basis of information already available with EPC's /EPO's / Chambers / Trade Associations /National Council for Trade Information [ NCTI] etc. tofind out the correct and possible market.
  • Exportstatistics of the product can also be studied to find out which country isalready buying from India.(Please click here).
  • Marketsurvey report for the product can be studied at the libraries of variousorganizations to know about the new market. Click on the following links : Frost Sullivan & Dun & Bradstreet (Please click here)
  • Searchon internet, sites of various organizations can also be made to get more information (Please click here)
  • Having done theabove exercise a fairly good idea can be made about the market to beapproached.
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Q 4.
Howto fix the export price?
Ans
For fixing export price, the followingelements should be taken into account.
  • Costof manufactured product.
  • Costof packing individually or in bulk.
  • Costof financing.
  • Costof Export Credit Guarantee Corporation of India Ltd [ECGC] cover
  • Costof expenses incurred on promoting / booking of order.
  • Costof documentation
  • Costof transport to the port including freight handling and other expenses.
  • Costof taxes, duties, Levy's etc. if any.
  • Profitmargin.
On total of all above the elements Freight on Board [FOB]export price will be reached. For Cost Insurance Freight [CIF] price cost offreight from the port of export to the port destination and the cost of insurancehas to be added in FOB.
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Q 5.
How to get details of Buyers/Agents?
Ans
Export order can be solicited /obtained / booked through one of the many of the following methods:
  • ApproachExport Promotion Council's / Export Promotion Organisation's / Chambers / TradeAssociations / National Centre for Trade Information [NCTI] to get a list ofForeign Buyers of the product identified. Click onthe following links:
  • EPCH (Please click here)
  • ALLEPC's (Please click here)
  • Chamber of Commerce & Trade Associations : (Please click here)
  • ApproachExport Promotion Council's for obtaining a list of overseas agents / importers/ distributors / mail order houses / trade associations / import organizationsetc. for information on possible buyers / buying organizations.
  • Onceinformation on above points is available then approach can be made to thebuyers or agents or others relevant for booking orders.
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Q 6.
What are preparatory steps to be taken before approaching buyer?
Ans
Itis important to take following actions before approaching buyer:
  • To constitute a company for exports, open a bank account, obtain Importer Exporter Code no. from DGFT (Please click here) for online form and get registered with the concerned Export Promotion Organisation.
  • Prepare publish and print a small catalogue on the company and its business line, giving details of products to be exported.
  • Print promotional material on the product such as product profile, giving full details of specifications also quality aspects.
  • Export prices to be fixed for each product both Freight On Board [FOB] and Cost Insurance Freight [CIF] .
Information on your competitors should be obtained sothat you are not caught unaware.
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Q 7.
How to finally select an agent or buyer?
Ans
While selecting a buyer care should betaken on the following aspects:
  • Buyer has to be reputed and his credentials can be verified from Export Credit Guarantee Corporation of India Ltd. (Please click here)
  • Buyer should be prepared to do business on safe terms of payment viz. preferably letter of credit, advance payment, D/P etc.
  • Buyer net work in his country should be got verified.
  • Once the above information have been checked then a decision can be taken on Buyer/Agent to be approached for business.
Incaseof selection of agent, query should be made from the Agents Association in thecountry of import about the reputation of agent and also from the IndianEmbassy or Embassy of the country concerned. Agent can also be asked to givereferences of the companies represented by him, products represented by him,country represented by him and the name main buyers etc. Itis necessary to know the expertise and business turnover of agent in theproduct which is being exported so as to form an idea about working capacity ofthe agent.
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Q 8.
What should be the Terms of payment?
Ans
Normally export order should be bookedon the basis of letter of credit. However, other terms of business can also beconsidered depending on the confidence of the exporter in the Buying Company.
Documentsagainst Acceptance [ D/A] The exports ofhandicrafts on D/A term are permitted only if the following conditions aresatisfied:-
  • Exportis covered either by Bank Guarantee or ECGC Guarantee.
Or
  • Suchexport is to own subsidiaries / own Trading Companies / Own office-cum-warehouses.
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Q 9.
How to complete / undertake export documentation?
Ans
It is necessary to take assistance of a reputedconsultant to undertake export documentation. Beginner can also undertake services of a cargo agent / freightforwarder / custom agents etc. for preparation and completion of documentation.A regular exporter is advised to have his own experienced staff in this work.
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Q 10.
How to solicit export order?
Ans
The export order can be solicitedthrough any of the following methods:
  • DirectMail :
After obtaining complete list ofbuyers, a communication can be sent to buyers with details of productssoliciting export order.
  • Personalvisit :
A personal visit can also be undertakento the buyer alongwith full preparation about the sample of products to beexported, export prices, delivery schedule, printed literature etc. (This is an expensive method)
  • Advertisementin Business Magazine/ Magazine of Chambers and Trade Associations:
A beginner can advertise its productsdetails in the relevant business magazines and In-House magazines of Chambersand Trade Associations for soliciting export orders. Advertisement in business magazines will bean expensive venture whereas advertisement in In-House magazines of Chambersand Trade Associations may be better
  • ThroughBuying agents:
Important buyers/buying houses andtheir agents located in Indiacan be approached for soliciting business.
  • Participationin Trade Fairs:
Participation in trade fairs isanother important and effective method of reaching prospective buyers. This method also educates the beginner on theproducts sold in the market. These Trade Fairs are held overseas and also in India. List ofsome of the prominent events organized, participating by EPCH is at (Please click here).
  • OnlinePromotion: Listing of products profiles an important trade portal.
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Q 11.
How to select a fair for participation?
Ans
Selection of trade fair can be done afterobtaining full details of trade fairs being held in various countries. Care should be taken to select fair in suchcountries where there is potential for exports or else the fair in which buyersfrom all over the world visit for sourcing. There are fairs which are held in important business centres whichattract buyers from all over the world. Details of such fairs can be obtained from the EPC concerned or from thewebsite ( www.eventseye.com )
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Q 12.
How to participate in Trade Fair?
Ans
Preparation for participation in tradefair should be done in a very comprehensive manner after selection of the rightfair in the right country. Preparationsshould include preparation of appropriate samples for display at the fair,preparation of publicity material/brochure of the company and other importantselling points etc. Knowledge about thecountry in which trade fair is taking place should also be collected particularlyabout the business system, competition being faced, price structure likelydemand pattern, tariff structure etc. so that one is fully ready to answer allkinds of questions. Detailed guidance about properpreparation for participation in trade fair can be obtained fromthe EPC concerned.
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Q 13.
How to get the names and address of business magazines?
Ans
Details of business magazines in various countriescan be obtained from EPCs concerned, Indian Embassies overseas and foreignembassies in India. One of the easy ways getting details ofbusiness magazine is through Ulrich Directory of Magazines. This may also be available on the internet.
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Q 14.
What are the major assistance /schemes for Handicrafts exporters?
Ans
The following are the major assistance / schemes forhandicrafts exporters:
  • Merchandise Exports from India Scheme (MEIS): In order to givethrust to the manufacturing and exports of Focus Products (Handicrafts items)(Please click here) an incentive of 3% or 5% duty credit scrip facility is available tohandicrafts exporters.
  • Duty drawback scheme for exporters: The objective of the scheme is to refund the incidence of custom duty, excise duty (additional custom duty), and service tax etc. on export products. The list of handicrafts items on which duty draw back is available is at (Please click here)
  • Market Access Initative (MAI): The assistance in terms of Reimbursement of Space charges subject to conditions is provided to exporters for participation in International shows.
  • Duty Free import provision of Consumables / Embellishments: In order to enhance the quality of handicrafts products the member exporters of handicrafts are allowed duty free import of consumables / embellishments and tools to the tune of 5% of their export performance during the preceding financial year. (Please click here).
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Q 15.
What are the incentives / facilities provided by the State Govt.
Ans
You can also avail the Market DevelopmentAssistance from State Govt. of Uttar Pradesh & Rajasthan. For moreinformation you can contact their Directorate of Industries in their respectivestates.
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Q 16.
How can an exporter avail the design developmentfacilities?
Ans
To provide design development inputs to the interestedexporters, the Council has set up a separate organization namely NationalCentre for Product & Design Development [NCDPD] which provides design inputto the members. For more information youmay kindly visit their website ( www.ncdpd.in )
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Q 17.
How to participate in the Training Programmers / Seminars/ Symposiums / Open House Meets organized by EPCH?
Ans
EPCH regularly organizes the Training Programes/ Seminars / Symposiums /Open House Meets on important issues pertaining thesector and members are invited through invitational circular wherein a responseform is attached which the interested exporters are required to fill andforward it to EPCH for the confirmation of his / her participation. Further, members may submit theirExpression of Interest in the prescribed format available at the following weblink (Please click here) which you may kindly fill and indicate your preference regarding thedifferent kind of programme that may be organized by your Council in future.
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These are basic generated FAQ's and are only of illustrative nature. However, specific cases/queries shall be dealt as per specific guidelines of the Council/concerned organization issued from time to time.

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