The major export promotion measures adopted by the government can be grouped under two heads:
I. Foreign Trade Promotion:
(i) Duty Drawback Scheme: Goods meant for exports are not consumed domestically, these are not subjected to payment of various excise and customs duties. therefore, excise duties paid on such goods are refunded on production of proof of export of these goods. It is called duty drawback
(ii) Export Manufacturing under Bond Scheme: This facility entitles firms to produce goods without payment of excise and other duties
(iii) Exemption from Payment of Sales Taxes: Goods meant for export purposes are not subject to sales tax. Even for a long time, income derived from export operations had been exempted from payment of income tax
(iv) Advance License Scheme: It is a scheme under which an exporter is allowed duty free supply of domestic as well as imported inputs required for the manufacture of exports goods.
(v) Export Promotion Capital Goods Scheme (EPCG): The main objective of this scheme is to encourage the import of capital goods for export production. This scheme allows export firms to import capital goods at negligible or lower rates of customs duties subject to actual user condition and fulfillment of specified export obligation.
(vi) Scheme of recognizing Export Firms as Export House, Trading House and Superstar Trading House: Their objective is to promote established exporters and assist them in marketing their products in international markets. The government grants the status of Export House, Trading House, Star Trading House. etc.
(vii) Export of Services: In order to boost the export of services, various categories of services houses have been recognized.
(viii) Export Finance: Exporters require finance for the manufacture of goods. Therefore, two types of export finances are made available to the exporters by authorised banks.
(ix) Export Processing Zones (EPZ): These are industrial estates which firms enclaves from the Domestic Tariff Area. They aim at providing an internationally competitive duty free environment for export production at low cost. Recently these have been converted into Special Economic Zones.
(x) EOU: 100%Export Oriented Units. This scheme was started in 1981. It is complementary to the scheme of EPZ. These have been set up with a view to generating additional production capacity for exports by providing an appropriate policy framework, flexibility of operations and incentives.
II. Organizational Support
(a) Indian Institute of Foreign Trade (IIFT): Established in 1963 under the Societies Registration Act, the IIFT is an autonomous body responsible for the management of the country's foreign trade. It is also a deemed university that provides training in international trade, conducts research in areas of international business and disseminates data related to international trade.
(b) Export Inspection Council (EIC): The EIC was established by the Government of India under Section 3 of the Export Quality Control and Inspection Act, 1963, with the objective of promoting exports through quality control and pre-shipment inspections. According to this act, all goods that are meant for exports (except some commodities) must pass through the EIC for quality inspection.
(c) Indian Institute of Packaging (lIP): The IIP is a training and research institute established in 1966 by the joint efforts of the Ministry of Commerce of the Government of India, Indian Packaging Industry and Allied Industries. The institute caters to the packaging needs of domestic manufacturers and exporters.
(d) Indian Trade Promotion Organisation (ITPO): The ITPO was formed on January 1, 1992, under the Companies Act, 1956. Its main objective is to maintain close interactions among traders, industry and the Government. In order to fulfill this objective, the ITPO organizes trade fairs and exhibitions within and outside the country, thereby helping export firms to interact with international trade bodies.
(e) Department of Commerce: The Department of Commerce is the apex body in the Ministry of Commerce of the Government of India and is responsible for formulating policies related to foreign trade as well as evolving import and export policies for the country. It is responsible for all matters related to the country's external trade.
(f) Export Promotion Councils (EPCs): Registered under the Companies Act or the Societies Registration Act, EPCs are non-profit organizations that are responsible for promoting the exports of particular products. However, the product promoted by a particular EPC must fall under its jurisdiction.

Documents required for an international sale can vary significantly from transaction to transaction, depending on the destination and the product being shipped. At a minimum, there will be two documents: the invoice and the transport document. The buyer will usually provide the seller with a list of documents needed to get the goods into his country as expeditiously and inexpensively as possible. Some documentary requirements are not open to negotiation, as they are needed by the importer to clear customs at the port of destination.
International market involves various types of trade documents that need to be produced while making transactions. Each trade document is different from other and present the various aspects of the trade like description, quality, number, transportation medium, indemnity, inspection and so on. So, it becomes important for the importers and exporters to make sure that their documents support the guidelines as per international trade transactions. A small mistake could prove costly for any of the parties.
For example, a Trade Document about the Bill of Lading is a proof that goods have been shipped on board, while Inspection Certificate, certifies that the goods have been inspected and meet quality standards. So, depending on these necessary documents, a seller can assure a buyer that he has fulfilled his responsibility whilst the buyer is assured of his request being carried out by the seller.
The following is a list of documents often used in international trade:
1. Air Waybill;
2. Bill of Lading;
3. Certificate of Origin;
4. Draft (or Bill of Exchange);
5. Insurance Policy (or Certificate);
6. Packing List/Specification;
7. Inspection Certificate.
1. Air Waybills: Air Waybills make sure that goods have been received for shipment by air. A typical air waybill sample consists of three originals and nine copies. The first original is for the carrier and is signed by a export agent; the second original, the consignee's copy, is signed by an export agent; the third original is signed by the carrier and is handed to the export agent as a receipt for the goods.
2. Bill of Lading (BIL): Bill of Lading is a document given by the shipping agency for the goods shipped for transportation form one destination to another and is signed by the representatives of the carrying vessel. Bill of lading is issued in the set of two, three or more. The number in the set will be indicated on each bill of lading and all must be accounted for. This is done due to the safety reasons which ensure that the document never comes into the hands of an unauthorised person. Only one original is sufficient to take possession of goods at port of discharge so, a bank which finances a trade transaction will need to control the complete set. The Bill of Lading must be signed by the shipping company or its agent, and must show how many signed originals were issued. To be acceptable to the buyer, the BIL should:
1. Carry an "On Board" notation to showing the actual date of shipment, (Sometimes however, the "on board" wording is in small print at the bottom of the BIL, in which cases there is no need for a dated "on board" notation to be shown separately with date and signature.)
2. Be "clean" have no notation by the shipping company to the effect that goods! packaging are damaged.
3. Certificate of Origin: "TheCertificate of Origin is required by the custom authority of the importing country for the purpose of imposing import duty. It is usually issued by the Chambers of Commerce and contains information like seal of the chamber, details of the good to be transported and so on.
The certificate must provide that the information required by the credit and be consistent with all other document. It would normally include :
1. The name of the company and address as exporter.
2. The name of the importer.
3. Package numbers, shipping marks and description of goods to agree with that on other documents.
4. Any weight or measurements must agree with those shown on other documents.
5. It should be signed and stamped by the Chambers of Commerce.
4. Bill of Exchange: Bill of Exchange is a special type of written document under which an exporter ask importer a certain amount of money in future and the importer also agrees to pay the importer that amount of money on or before the future date. This document has special importance in wholesale trade where large amount of money is involved.
On the basis of the due date there are two types of Bill of Exchange:
Bill of Exchange after Date: In this case the due date is counted from the date of drawing and is also called bill after date.
Bill of Exchange after Sight: In this case the due date is counted from the date of acceptance of the bill and is also called bill of exchange after sight
5. Insurance Certificate: Also known as Insurance Policy,it certifies that goods transported have been insured under an open policy and is not actionable with little details about the risk covered. It is necessary that the date on which the insurance becomes effective is same or earlier than the date of issuance of the transport documents. Also, if submitted under a LC, the insured amount must be in the same currency as the credit and usually for the bill amount plus 10 per cent.
The requirements for completion of an insurance policy are as follows:
(a) The name of the party in favor of which the documents has been issued.
(b) The name of the vessel or flight details.
(c) The place from where insurance is to commerce typically the sellers warehouse or the port of loading and the place where insurance cases usually the buyer's warehouse or the port of destination.
(d) Insurance value that is specified in the credit.
(e) Marks and numbers to agree with those on other documents.
(f) The description of the goods, which must be consistent with that in the credit and on the invoice.
(g) The name and address of the claims settling agent together with the place where claims are payable.
(h) Countersigned where necessary.
(i) Date of issue to be no later than the date of transport documents unless cover is shown to be effective prior to that date.
6. Packing List: Also known as packing specification, it contains details about the packing materials used in the shipping of goods. It also includes details like measurement and weight of goods.
The Packing List must:
(i) have a description of the goods ("A")consistent with the other documents.
(ii) have details of shipping marks ("B") and numbers consistent with other documents.
7. Inspection Certificate: Certificate of Inspection is a document prepared on the request of seller when he wants the consignment to be checked by a third party at the port of shipment before the goods are sealed for final transportation.

Following institutions help in promoting exports or facilitating foreign trade
1. Department of Commerce: It is under Ministry of Commerce, Government of India. It is the apex institution responsible for the country's external trade and all matters connected with it. It formulates policies for foreign trade. It also formulates export and import policy of the country.
2. Export Promotion Council (EPC): These are non-profit organizations which are registered with either Companies Act or Societies Registration Act. They aim at promoting and developing the country's exports of particular products falling under their jurisdiction.
3. Commodity Boards: Commodity boards are the boards established by Indian Government for development of production of traditional commodities and their products. There are 7 boards at present.
4. Export Inspection Council (EIC): It was established under Export Quality Control and Inspection Act, 1963which aims at sound development of export trade using quality control and pre-shipment inspection.
5. Indian Trade Promotion Organization (ITPO): It was set up on 1January, 1992 under the Companies Act, 1956 by the Ministry of Commerce. It is a service organization and maintains regular and close interaction with trade, industry and Government. It has five regional offices in Mumbai, Bangalore, Kolkata, Kanpur and Chennai and four international offices in USA, Germany, Japan and UAE.
6. Indian Institute of Foreign Trade (11FT):It was set up in 1963as an autonomous body registered under the Societies Registration Act with the prime objective of professionalising the country's foreign trade management.
7. Indian Institute of Packaging (lIP): It was set up in 1966.It is a training cum research institute pertaining to packaging and testing. It caters to packaging needs with regard to both the domestic and export market. Its headquarters are in Mumbai and it has three regional offices in Kolkata, Delhi and Chennai.
8. State Trading Organizations: It was established in May, 1956. Its main aim is to stimulate trade primarily export trade among different trading partners of the world. Under it more organizations were set up later like Metals and Minerals Trading Corporation (MMTC)and Handloom and Handicrafts Export Corporation (HHEC).

Export procedure: Imports and Exports (control) Act, 1947 regulates exports of goods from India. The Central Government announces rules, policies, procedures and incentives for exports from time to time. The procedure of export of goods from India is guided by these rules and regulations of the Government of India. But, in general, an export transaction has to pass through the following stages:
(i) Receiving enquiries and sending quotations: The exporter receives order from importer and sends quotations for goods.
(ii) Receiving of Order or Indent: The order is received for export of goods containing instructions regarding goods, price, quality, quantity etc.
(iii) Credit enquiry or obtaining Letter of Credit: The credit worthiness of the importer is verified.
(iv) Obtaining Export License and Quota: The exporter of goods gets a license under Import and Export Control Act for sending the goods.
(v) Compliance with Foreign Exchange Regulations: The exporter gives an undertaking to comply with foreign exchange regulations and deposit the exchange with Reserve Bank of India on receipt of price.
(vi) Fixing the Exchange Rate: The exchange rate is fixed on which the price is to be received.
(vii) Obtaining the Shipping Order: The exporter takes steps in regard to packing and marketing of goods. Packing is done as per the instructions of the indent.
(viii) Preparation of Invoice and Consular Invoice: After completing other formalities the exporter prepares the invoice. The invoice contains details such as name of ship, destination, packing marks, etc.
(ix) Obtaining Customs Permit: Some customs formalities are observed before goods leave the country. Custom authorities clear the goods after getting export duties
(x) Paying Dock Dues: Dock dues are paid to dock authorities.
(xi) Shipping of Goods: Before the goods are actually loaded custom officials verify the goods and their quantity.
(xii) Mate's Receipt: A receipt for the goods is issued by captain of the ship or his assistant acknowledging the receipt of goods.
(xiii) Bill of Lading: It is a memorandum signed by master of ship acknowledging the receipt of exporter's goods.
(xiv) Effecting Insurance: An insurance policy is obtained to safeguard the goods against the peril of the seas.
(xv) Certificate of Origin: Some importing countries require a certificate of origin for goods. This certificate is issued by the designate authorities of the country.
(xvi) Securing Payment: The exporter will secure payment for the exports.
(xvii) Obtaining Various Export Incentives: The exporter may be allowed some incentives by the government and these are received after completing the process of export.

Features of the WTO (World Trade Organisation):
(a) It governs trade in goods, services and intellectual property rights among the member countries.
(b) It is a body created by an international treaty with the approval of the governments and legislatures of the member states.
(c) The decisions of the WTO are made by the governments of the member nations on the basis of consensus.
Structure of the WTO
On January 1, 1995, the General Agreement on Tariffs and Trade (GATT) was transformed into the WTO to facilitate international trade among the member countries. The WTO was made much more powerful than GATT, by removing tariff and nontariff barriers between the member nations. It is a permanent body created by an international treaty and represents the implementation of the original proposal of the ITO.
Objectives of the WTO
(a) Reducing tariff and other non-trade barriers imposed by different nations;
(b) Ensuring sustainable development by optimally using the world resources;
(c) Developing a more integrated, feasible and stable trading system
Functions of the WTO
(a) Providing an environment to the member countries such that they can put forward their grievances before the WTO without any hesitation;
(b) Resolving trade disputes among member nations;
(c) Eliminating discriminations in trade relations by laying down a commonly accepted code of conduct;
(d) Creating better understanding between member countries by consulting with the IMF, the World Bank and other affiliates.

The IMF, or the International Monetary Fund, came into existence in 1945 with the objective of establishing a healthy and orderly monetary system. It aimed at facilitating a system of international payments and taking care of the adjustments in exchange rates among national currencies. It is one of the three international institutions-the other two being the World Bank and the International Trade Organization-that were created for facilitating and monitoring the economic development of the world.
Objectives of the IMF
(a) To aid the balanced growth of international trade and market, thereby promoting the growth of employment and income;
(b) To promote international monetary cooperation among the member countries;
(c) To facilitate the orderly exchange of goods between the member countries;
(d) To facilitate international payments with respect to the exchange transactions between the member countries
Functions of the IMF
(a) Providing short-term credit to member countries;
(b) Maintaining stability in the exchange rate of the member countries;
(c) Fixing and altering the value of a country's currency whenever required, to facilitate the adjustment of exchange rate of member countries;
(d) Collecting the currencies of member countries so as to allow them to borrow the currency of other nations;
(e) Lending foreign currency to member nations and facilitating international payments with respect to the exchange transactions between member countries.

The World Bank is an International Financial Institution that was established in 1944 at the Bretton Woods Conference
The following are some of the main objectives behind the setting up of the World Bank
(a) To facilitate the task of reconstruction of the war-affected European countries.
(b) To focus on the development of underdeveloped nations of the world.
(c) To encourage investments in infrastructure development, agriculture, health and industry;
(d) To eradicate poverty, increase the income of the poor and provide technological support
The following are some of the affiliates of the World Bank:
(a) MIGA: MIGA, or the Multinational Investment Guarantee Agency, was established in April 1988 with the objective of encouraging foreign direct investments in the less developed nations ofthe world. It also aims at insuring investors against political and non-commercial risks and providing advisory services.
(b) IFC: The IFC, or the International Finance Corporation, was formed in 1956 as a separate legal entity to provide finance to the private sector in developing nations. Although the IFC is an affiliate of the World Bank, it has its own funding, besides functions that are managed independently.
(c) IDA: The IDA, or the International Development Association, was established in 1960with the affiliation to the World Bank. The basic objective ofthe association is to provide loans and grants on a soft-loan basis to the less developed member countries-it aims at providing loans at concessional rates to the member countries whose per capita income is very low. It is because of this objective that the IDA is also known as the World Bank's soft-loan window

The following are some of the schemes and incentives adopted by the government to promote exports
(a) Duty Drawback Scheme: Under the duty drawback scheme, exporters are either exempted from payment of excise duties or are refunded a certain percentage of the excise duty paid earlier. In case where inputs are used for export production, the custom duties paid on import of raw material and machines are refunded.
(b) Export Manufacturing under the Bond Scheme: This bond scheme enables exporters to undertake production of goods meant for exports without paying excise or other duties. In order to avail themselves of this scheme, exporters must sign an undertaking that the goods produced are meant only for exports and not for domestic consumption.
(c) Exemptions from Payment of Sales Tax: The goods that are meant for imports are not subjected to sales tax. The income earned by exporters (only those who run 100 per cent export-oriented units or units in export processing zones and special economic zones) from the export of goods is exempted from payment of income tax.
(d) Advance License Scheme: Advance License Scheme allows exporters to use inputs (those that are domestically produced or imported) without the payment of any duties. In addition, the scheme exempts exporters from paying custom duties in cases where the imported inputs are used for manufacturing goods meant for exports.
(e) Export Promotion Capital Goods (EPCG) Scheme: The EPCG Scheme promotes the import of goods for the production of export goods. Under the scheme, exporters are allowed to import goods at concessional rates of custom duties. However, to avail themselves of this scheme, exporters must fulfill certain export obligations stated under the scheme.
(f) Scheme of Recognizing Export House, Trading House and Superstar Trading House: This scheme aims at facilitating well-established trading houses to market their products globally. Under the scheme, selected exporting firms are given the status of export house, trading house and star trading house by the government. This status is given on the basis of the past export performances of export firms.

The following documents are required for an export transaction:
(a) Export Invoice: It is a seller's bill which contains information about the quantity of goods, total value of goods, number and marks of packaging, name of the ship, etc.
(b) Packing List: It includes information related to the goods that are packed, such as the number of items packed in one package, details of goods contained in one package, etc.
(c) Certificate of Origin: Certificate of Origin specifies the country in which the goods being exported were produced. It allows the importer to claim tariff concessions and other exemptions.
(d) Certificate of Inspection: Certificate of Inspection is proof that the goods being exported are of good quality. The exporter contacts the Export Inspection Agency (EIA) or another designated agency and obtains the certificate of inspection after getting the goods inspected.
(e) Mate's Receipt: It is a receipt issued by the captain or commanding officer of a ship to an exporter as evidence that the exporter's cargo has been loaded on the ship. It contains information about the name of the vessel, berth, date of shipment, condition of the cargo when the goods were loaded, description of packages of the cargo, number of packages, marks on the packages, etc.
(f) Shipping Bill: It contains information regarding the specifications of the goods for export, such as the name of the vessel, port at which the goods are to be discharged, country of final destination and exporter's name and address. This document forms an essential part of an export transaction as it is on the basis of this document that customs grants clearance to the export.
(g) Bill of Lading: Bill of lading is an essential document required for an export transaction. It is issued by the shipping company concerned as a token of acceptance that the goods have been put on board in its vessel. A bill of lading is an undertaking signed by the shipping company to transfer the goods to the port of destination. Bills of Lading are freely transferable.
(h) Airway Bill: It is issued by an airline as a token of acceptance that the goods for export have been put on board its aircraft.
(i) Marine Insurance Policy: Marine Insurance Policy is an insurance contract under which the insurance company concerned, in return for a premium, agrees to pay an exporter a specified amount in case of loss of goods or damage caused during transport by sea.
(j) Cart Ticket: Also known as a cart chit or a gate pass is prepared by an exporter and includes information about the exporter's cargo.
(k) Letter of Credit: Letter of Credit is issued by the bank of an importer guaranteeing to honour a draft of a specified amount drawn on it by the exporter. A letter of credit enables the exporter to assess the creditworthiness of the importer and is the most appropriate and secure method of payment for settling international transactions.
(l) Bill of Exchange: Bill of Exchange indicates the amount that an importer must pay to the bearer of the bill. On receiving a bill of exchange, the importer instructs its bank to transfer the amount to the exporter's bank account.
(m) Bank Certificate of Payment: Bank Certificate of Payment indicates that the necessary documents, along with the bill of exchange, have been presented to the importer, and that payment from the importer has been received in accordance with the exchange control regulations.

Rekha Garments will have to adopt the following procedures given below to execute the export order
(a) As the exporter, it should first assess the credit worthiness of the importer. Swift Imports, through an enquiry. It should then ask for a letter of credit from the importer's bank, guaranteeing to honour a draft of a specified amount. drawn on it by the exporter.
(b) Once Rekha Garments is assured that it will be paid for the goods, it will need to register itself and secure an Importer Exporter Code number in order to obtain an export license.
(c) After obtaining the license, it should acquire pre-shipment finance from a bank in order to purchase raw materials to undertake production and packaging
(d) With the finance made available, Rekha Garments can procure the raw materials and other inputs required and start the production process
(e) After the goods are produced, Rekha Garments must get them inspected before exporting them. For this inspection, it must contact the Export Inspection Agency (EIA) or another designated agency and obtain a certificate of inspection.
(f) The exporter then needs to secure excise clearance, for which it must submit an invoice to the regional excise commissioner. The excise commissioner then examines the invoice and, if satisfied, issues the excise clearance to the exporter.
(g) Once the excise clearance is received, Rekha Garments needs a certificate of origin, which specifies the country in which the goods are being produced. It allows the importer to claim tariff concessions and other exemptions, if any.
(h) The next step is for the exporter to submit an application to a shipping company for booking shipping space in a vessel. In the application, it must provide details such as the type of goods to be shipped and the port of destination. After the application is received, the shipping company will issue a shipping order to the captain of its ship to inform him or her that the specified goods will be received on board after the customs clearance.
(i) The goods are then properly packed and labelled with all the necessary information such as the importer's name, port of destination, and gross and net weight of the goods.
(j) Once the goods are ready for export, Rekha Garments must insure the goods against perils of the sea or any related damage.
(k) It must then secure customs clearance before loading the goods on the ship. For getting customs clearance, the exporter must submit the necessary documents to the customs appraiser at Customs House.
(l) After customs clearance, a mate's receipt will be issued by the captain or commanding officer of the ship to the exporter as evidence that the cargo has been loaded on the ship.
(m) Later, a bill of lading will have to be obtained from the shipping company as a token of acceptance that the goods have been put on board in its vessel.
(n) After the goods are shipped, an invoice will have to be prepared by the exporter, which will include the quantity of goods sent and the amount to be paid by the importer.
(o) The exporter then needs to send a set of documents to the banker, which is to be handed over to the importer on acceptance of a bill of exchange. After receiving the bill of exchange, the importer, Swift Imports, will instruct its bank to transfer money to the exporter's bank account.
(p) Last, the exporter would be required to collect a bank certificate of payment, which will state that the necessary documents, along with the bill of exchange, have been presented to the importer for payment, and that the payment has been received in accordance with the exchange control regulations.