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What Business Characteristics are Essential for a Successful Exim Business?

Business is not an easy task. Export Business or Import Business both are having a good amount of profit if they are done in a proper way under proper guidance. It is very challenging for a businessman who is involved in the Export-Import Business. There are many characteristics or skills which are essential for the Export-Import Business. These characteristics include finance as well as technology. The Export-Import Businessman must also have communication as well as interpersonal skills for developing their business and making it better than the rest.

Essential Characteristics for Exim Business

Right characteristics or skills is very much essential for any business and the same is the case for Export-Import Business. There are some essential characteristics that are required to make an Export-Import Business a successful one and they are as follows-

Accountability and Adaptability

Taking responsibility for the work is known as accountability and adaptability means the willingness of a person to change their thing with the change of circumstances. Accountability helps in building trust with the people you are interacting with internally with team members or externally with vendors or clients. A person who is adaptable in the Export-Import Business can easily face challenges.

Understanding of Budgets and Finance

The key to financial success is the one who is involved in the business must be financially savvy. This is very much essential for the person involved in the iExport-Import Business. The person involved in this business must have a good understanding of the accounting system. Moreover, they must also contribute to the process of budgeting.

Budgets in simple words are known to be the plan for spending that will help the business in setting goals as well as priorities for the financial year. Some of the major responsibilities include determining the budget, drafting the reports of expenditure, and to also ensure that the team is sticking to the budgets that have been approved.  

These financial skills are very much needed for the person involved in a small Export-Import Business. This is because they operate on a very small budget and their business can be hurt easily if there is any kind of deviation in the approved budgets.

Skills in Networking

Establishing interaction with many vendors or customers, such as transport service providers, freight forwarders and government agent representatives like customs officers is very essential. They must maintain a good relationship. Social media platforms can help in establishing connections. This will help in creating a business profile that will help in interacting with customers. This is also considered to be an effective way to build a proper network with government agencies, and stakeholders to attend various conferences organized by these bodies.

Knowledge of technology

Technology is something that is growing day by day and people are using basic technologies like using laptops, smartphones web-based applications, desktops, and cloud technology. Small businesses can leverage capital in an efficient manner with the help of technology. Moreover, they can also play a major role in increasing customer service, minimizing the cost with the help of automating routine tasks, accessing the global market, and taking documentation online. This is the main reason why organizations are becoming more competitive and efficient.

Because of the pandemic, there have been many disruptions in business worldwide and so there is an embrace of technology or even speeding up the transformation digitally so that they can survive. There are some technology tools that the Export-Import Businessman should know and they are-

  • Project management tool- These tools play a major role in scheduling and planning the jobs to be done with hassle-free documentation and evaluation by establishing collaboration with colleagues.
  • Inventory management software- This software plays an important role by helping the business to plan production, track stocks, plan procurement, and sales, and also prevents excess stocks and stock-outs. This helps in increasing productivity, improves cash flow, increases efficiency, and hence leads to saving costs.

Ability to handle stress

There are many times when a businessman involved in Export-Import Business will have to make certain decisions in a stressful condition. For example, there may be times when the cargo can be damaged or shipment is delayed. This is a very stressful condition and at that time you need to answer your customers about how you will proceed.. taking calm and measured decision is very important and is considered to be a valuable skill.

International Trade Compliance Requirements

Import Business and Export Business is governed by complex rules between different countries. Trade compliance is known to be the process of understanding and conforming to export and import laws including the regulation of a country. It also includes any kind of trade agreement that has been signed.

There are many companies where Export-Import Manager plays a vital role in trade compliance. The main role of the Export-Import Manager is that they will be ensuring that all the employees are well acquainted with the laws and regulations regarding import and export in various countries. If there is a failure then it will result in inspection, audit, and also penalties. This will in turn damage the relationship with your customers and will hurt your business in the future.

Ability in receiving feedback

Receiving feedback from customers is very important. The person must be able to take positive as well as negative feedback from customers and then act accordingly to take their business to a different level. If a customer is kept at the center then it will enhance the reputation of your business and will help in the long run.

Communication Skills

The main work is to deal with different stakeholders like government representatives, customers, and many more. Clear communication is very essential in this field to avoid any kind of misunderstandings. It is important that the people you are dealing with will understand clearly what you are saying and you will also understand what they have to say.

There are 12characteristics that lead to success in the marketplace for Export-Import Business and they are-

  • Curiosity
  • Adaptability
  • Confidence
  • Flexibility
  • Streamlining
  • Intelligence
  • Objectivity
  • Perseverance
  • Leadership
  • Wanderlust
  • Tact
  • Resilience

Conclusion

These lists of characteristics are very essential for Import Business as well as Export Business. Before proceeding with the Export-Import Business, it is important to acquire such skills in order to have a bright future for your business. This will help in building a reputed organization.

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What is use of the import export code?

In the world of foreign trade, Import Export Business is known to be one of the most common and hot terms. This sector helps you by allowing your business to grow in a rapid manner. Moreover, this will also help in increasing global reach. The economic infrastructure of a country is also dependent on this business as it helps in increasing a country’s economy by increasing the GDP. Gross Domestic Product (GDP) is an indicator of a country’s overall economic health and export import business plays a vital role in contributing to it. To engage in this business, one needs to obtain an Export Import Code (EIC) from the Directorate General of Foreign Trade (DGFT). EIC is a 10-digit code issued by DGFT that authorizes businesses to import or export goods. This code is required for all shipments above Rs. 25,000 in value.

Some important criteria are there which are very much mandatory for the business of import and export. One of them is the IEC code which is the Import Export Code registration. It is known to be one of the most important requirements for a person or any other type of business that deals with the import and export business. The Director-General of Foreign Trade is responsible for issuing the Import-Export code for industries and commerce.

What do you mean by Import Export Code?

One of the best options for new people is the IEC or the Import Export Code. This is known to be one of the first steps of registration for the people who are engaged in the import and export of products and services. The Director-General of Foreign Trade issues the IEC code which is having a unique code of 10 digits. This is known to be one of the most necessary documents for the Import-Export business.

A person can easily grow up the level of their business with the help of this IEC code. A business entity can use the IEC code once it has been issued and it is known to be the Import Export License. There is no need for the importer and exporter to renew or fill the issue. The IEC code is required by the importer who imports goods to its country and also to the exporter who exports its good from their country to another country. IEC is also required by the bank when there is a need for sending money abroad.

Uses of Import Export Code

Import Export Product Codes are essential for the person who are in this business as mentioned earlier. Ships carrying cargo play a major role in transferring the cargo or goods from one place to other and helps in importing and exporting goods. In order to unlock the corridors of the International economic and trade market IEC plays a major role. There is various use of this code as this is required by both importers as well as exporters. It is very important for an importer to clear the shipment from customs and here comes the role of the Import Export Code for the importers. Now for the exporters when they are responsible for exporting their items to other countries this code is asked by the customs. The major uses for this IEC Code are as follows-

  • Expansion of business is known to be the first and foremost use for this Import and Export Code as this IEC plays a major role in assisting a businessman to take their services as well as product to the global market.
  • A company can easily avail of various benefits with the help of this Import Export Code from customs, DGFT (Director General of Foreign Trade), and export promotion council depending on the registration of IEC.
  • Now for the exporters who get their payments by means of foreign currency and the transferring of money is taken place through the bank account of the exporter in a direct manner this IEC code is used.

There is also an Import Export HS code which is being followed by 200 countries all around the world. In order to execute the international trade agency the most systematic method that can be used is the IEC HS code. This code is having a unique code of 6 digits which is given for any particular item that is to be imported or exported.

Documents that are important for Import Export Code

Before knowing about the uses of the Import Export Code it is very much essential to know about the documents that are required for receiving the license for Import Export Code. They are as follows-

  • Pan Card copy for individual or Company.
  • Rent of agreement of the premises or electric bill copy.
  • Aadhaar card or Passport copy or Voter’s ID for an individual.
  • An envelope that is self-addressed for registered mail delivery of the certificate of Import Export Code.
  • Copies of cancel cheque of current bank account for firms, companies, or individuals.

There are also various benefits that can be avail by the use of this Import Export Code and they are the expansion of business, no requirement for renewal, no return filing, simple processing,  etc.

Conclusion

However, it is very essential to keep in mind that there are some places where the Import Export Code is not mandatory. According to the latest circular that has been issued by the Government, it is not mandatory for any traders who are having their registration under GST. So pan card of the user is used in this case as IEC code. This is also not essential for goods of personal purposes. The above points will surely help in guiding the Import Export Code and knowing about their uses as well as the things essential to receive this IEC.

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