Trade fairs are a great way to unlock huge potential to generate new business and expand business to new/emerging markets. Participating at a trade fair where you would be meeting exhibitors from many countries, is in itself a huge opportunity.
Let’s prepare thoroughly and make the most of this opportunity! We can help you prepare for this opportunity by taking you through some of the most important aspects of EXPORT PRICING which can be helpful in winning the deal –
# Identifying correct HSN codes for your machineries
Applying incorrect HSN codes would lead to availing wrong set of benefits and even application of incorrect customs duty rates by the importing country. Hence, it is important to identify correct HSN codes for export items and avail correct set of benefits which can help in lowering export prices or increasing profit margins.
# Reducing the landed cost of imports for buyer countries
Without squeezing your margins, you can reduce the landed cost of imports to buyer’s country in following multiple ways:
# Increasing market share of your product applying knowledge of customs duty
Knowing and comparing buyer (importer) country’s customs duty rates if imported from India vs. from other competitor countries can help in understanding the landed cost to the buyer country.
For instance, if your customer is located in Germany looking to buy your product which even China has to offer, then it may be always important to know about customs duty rate if that product is imported from China.
Following illustration may actually help you to understand that on comparing customs duty applicable on imports from competitor countries, India has straightway extra margin of around 4.5% than Chinese exporter.
|HSN CODE 40111000 – Tyres||Exporting country –
|Exporting country –
|Customs tariff rate on import by Germany||0%||4.5%|
Marketing strategies can be derived basis comparing free / trade preferential trade agreements of India and other competitor countries.
# Export benefits on your services
Export incentives are available even on export of services from India to overseas countries. The benefits available are in the range of 3-7% of the net foreign exchange earned. In our experience, incentives on services exports are mostly not availed by exporter. For instance, engineering services, etc.
# Other export promotion schemes
In addition to above, there are other schemes for promotion of products to international markets.
Assistance is available in the form of lease rental charges for Opening of showrooms/warehouses/marketing offices/display of products at international departmental stores etc.
# Our recommendations:
To sum-up, it is highly recommended to look at overall aspects of benefits available in the form of concessional customs duty rate, export incentives, lease rental assistance etc. to win the deal in highly competitive international markets.
To know further about EXIM related matters, feel free to get in touch with us through e-mail id – email@example.com or at +91 (79) 4890 7720 / (+91) 94280 79020.