To enter export trade, the first thing one has to do is to decide about the product which one intends to trade.  One should have intimate knowledge about the product and sources of supply.  If one has varied sources of supply, one will have no problem in procurement and shipment.  But if one produces the product oneself at effective cost and exercise quality control, then one can become a successful exporter within a shortest possible time. One can also analyse which products are exported to which country.

After selection of product, one may open an office, give it a name, print letter heads, install phone and fix a sign board on your business premises.

The exporter cannot go to every country in the world to persuade people to buy his product. Even the largest international firms do not trade with the whole world and not every country can or will buy what a particular exporter may sell to them. In view of scarce resources and shortage of experienced  marketing personnel, the exporters should be selective and concentrate on markets which could yield the best results.  For this one has to examine.

It is easy to quote price at home.  For this one has just to calculate cost of production with packing and transportation charges and add profit.  But in case of export, quoting of price means many things.  For this one has to examine several things including the following:-

When prices are accepted then a contract is signed with the firm for supply of goods which becomes binding on both the buyer & seller.  Contract is a document which normally contains.

When the exporter is making an offer, he quotes the price of his product.  If the offer is accepted then a contract is signed between the buyer & the seller. The contract includes terms and conditions under which goods are delivered.

The buyer sitting in the overseas market is normally not interested to receive charge of goods at one's factory  site but he may be interested to get charge of goods on FOB basis which means free on Board at airport or seaport.  It means that charges of the consignment are fully paid up to that point and the rest of the freight is paid by the buyer. Terms of delivery are not only important for quoting price but it also makes clear as to who  is responsible for the goods if anything goes wrong.  The most frequently used terms of delivery are as under:-

The exporter should accept order which he can fulfil easily. He should have the necessary finances or access to finances for effecting shipment and the capacity to wait till the sale proceeds are received. In this connection, term of payment plays an important role as it should be timed to keep you solvent at the time of need.  For export pre-shipment and post-shipment credits are available from the Govt; on concessionaire rate.  The exporter can make use of it.

Packing should be sea, air and road worthy.  The container should be in a position to carry contents to the destination in perfect condition.  For reduction in cost most economical packing material be used. Pakistan Packing Institute can help you.

Light and costly items are normally sent by air or in self consignment where as heavy items are shipped by sea.  In each case the most economical mode should be used to reduce cost.

4th copy of shipping (through customs) bill to be used for rebates on bank/sales tax refund/textile quota.

BCA (Bank Credit Advice) to be received from commercial banks after foreign exchange is received. The BCA is considered proof for the purpose of rebates, refinance scheme etc