Export Administration Lecture 1

Introduction to Export Administration

• Export Administration is the fusion of two words 'export' and 'administration', which deals with the day-to-day management of exporting goods and services from one country to another.

Course Overview

• The course is focused on the processes of internationalization and covers topics such as theories of internationalization, competitiveness of firms, non-traditional exports, trade and economic development, and institutional setting of exports.

Export Administration

• Export administration involves planning, organizing, coordinating, and controlling all activities related to exporting goods, technology, and services from one country to another.
• It involves managing export marketing activities efficiently and smoothly to ensure compliance with laws and regulations.
• Export administration is concerned with international marketing activities and operations.

Why the Need for Exports?

Benefits to the Exporting Country

• Exports enable the country to earn foreign exchange, which can be utilized in importing consumer goods, raw materials, and capital goods.
• Exports help develop international ties with importing countries through international trade, trade talks, and trade agreements.
• Exports help solve and improve the country's balance of payments position.
• Exports bring reputation and goodwill for a nation in international markets.

Benefits to the Exporting Firm/Organization/Industry

• Exports enable business units to export quality goods at higher prices and raise their profit margin.
• Exports help business firms spread their market risk and compensate for losses in the domestic market.
• Export administration enables a firm to improve its organizational efficiency.

Basic Terminologies in Export Administration

• Absolute Advantage: a situation where a country or company is more efficient at producing a good or service than another country or company.
• Bill of Lading: a document issued by the shipping company upon shipment of goods, serving as a contract between the shipper and the shipping company.
• Certificate of Inspection: a document certifying that merchandise was in good condition at the time of inspection.
• Certificate of Origin (COO): a document declaring that goods are manufactured in a specific country.
• Commercial Invoice: a statement of account sent by the seller to the buyer, prepared on the seller's letterhead.
• Comparative Advantage: a concept that holds that a country should specialize in producing goods and services it can produce relatively more efficiently than others.
• Consular Invoice: a certificate issued by the Trade Consulate stating that goods of particular value are being imported from a particular country.
• Customs Bonded Warehouse: a warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until removal for domestic consumption.
• Customs Entry Form: a form used for compiling statistics on the volume and value of exports.
• Demurrage: extra charges paid to a shipowner or carrier when a specified period for loading/unloading is exceeded.
• Export License: a license required for the export of raw materials, goods in short supply, or goods related to national security.
• Packing List: a document including details about the contents of a package.
• Letter of Credit (L/C): a document issued by the importer's bank stating its commitment to honor a draft or pay on presentation of specific documents by the exporter within a stated period.
• Shipping Bill: a multi-purpose document used as an application for export of goods, as a dock challan, and for claiming duty drawback and other export incentives.