A STUDY ON PRE-SHIPMENT TRADE AND DOCUMENTATION

AND PROCEDURES IN MASILAMANI TEXTILE PVT LTD

C.Roja1, K.G.Selvan2
1
Final year MBA, School of Business, PRIST University, Vallam, Thanjavur.
2
Professor, School of Business, PRIST University, Vallam, Thanjavur.

ABSTRACT Approaching Foreign Buyers

Export documentation plays a vital role in In order to secure an export order, a new exporter
international marketing as it facilitates the can make use of one or more of the techniques,
smooth flow of goods and payments thereof such as, advertising in international media, sales
across national frontiers. A number of promotion, public relation, personal selling,
documents accompany every shipment. These publicity and participation in trade fairs and
documents must be properly and correctly exhibitions.
filled. Export documentation is however, Inquiry and Offer
complex as the number of documents to be An inquiry is a request from a prospective
filled-in is large, so also is the number of importer about description of goods, their
concerned authorities to whom the relevant standard or grade, size, weight or quantity, terms
documents are to be submitted. Incorrect of payments, etc. On getting an inquiry, the
documents a may lead to non-delivery of exporter must process it App immediately by
goods to the importer you may get the correct making an offer in the form of a proforma
documents after some time but in the invoice.
meantime storage charge may have to be paid. Confirmation of Order
Advisable to take the help of shipping and Once the negotiations are completed and the
forwarding agents who will obtain and fill out terms and conditions are finalised, the exporter
the documents correctly as well as arrange for sends three copies of proforma pre invoice to the
transportation. But every exporter should importer for the confirmation of order. The
have adequate knowledge about export importer signs these copies and sends back two
documents and procedures. Export copies to the exporter.
documentation plays a vital role in Opening Letter of Credit
international marketing as it facilitates the The documentary credit or letter of credit is the
smooth flow of goods and payments thereof most appropriate and secured method of payment
across national frontiers. A number of adopted to settle international transactions. On
documents accompany every shipment. finalization of the export contract, the importer
opens a letter of credit in favor of the exporter, if
1. INTRODUCTION agreed upon in the contract.
Exporters should seriously consider
having the freight forwarder handle the 2. REVIEW OF LITERATURE
formidable amount of documentation that A Study on Leather Goods industry in
exporting requires; freight forwarders are Tamilnadu with special reference to exports.
specialists in this process. The following S.M.Mohamed Nasardeen – 2007. The study has
documents are commonly used in exporting; been made to understand the present status of
which of them are actually used in each case Indian leather goods industry. It has also
depends on the requirements of both our evaluated the functioning and export
government and the government of the importing performance. The study has considered the
country Pre-shipment stage consists of the export marketing practices adopted by leather
following steps: goods units. It has analyzed the prospects of
 
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leather goods units and suggested measures for Sampling Framework
the improvement of their export performance. The population is finite and
A study on the problems and prospects “Simple random sampling method” will be
for 100% EOU's in MEPZ-SEZ, Chennai. A. adopted for selecting samples from the finite one.
Thilakamary - 2006. The study has focused its Total population 1500, my sample size is 100.
attention on kinds of material and labour Primary and Secondary Sources
problems of exporting units in MPEZ-SEZ, Researchers need to consider the sources on
problems faced by the units in raising finance, which to base and confirm their research and
major marketing problems and evaluated their findings. They have a choice between primary
performance. data and secondary sources and the use of both,
ECGC services to exporters - A study which is termed triangulation, or dual
with reference to Coimbatore region. A. methodology.
Muthuswamy - 2005. The study has evaluated Primary data is the data collected by the
the business and financial performance of ECGC researcher themselves, i.e.
(Export Credit Guarantee Corporation), 1. interview
utilization of export finance and related problems 2. observation
faced by exporters. It has also suggested that 3. action research
Reserve Bank of India to consider favourably the 4. case studies
application for relaxation of pre-shipment credit 5. life histories
period suggesting simplification in export 6. questionnaires
procedures. The study has expressed that ECGC 7. ethnographic research
to take steps for promotion of export business 8. longitudinal studies
through conducting awareness programmes and Secondary data sources are data that already
seminars through effective advertisement in exists
business journals, magazines web etc. 1. Previous research
A study of the export processing zones in 2. Official statistics
India, T.S.Padmanabhan, 2000. The study has 3. Mass media products
examined the facilities and privileges extended 4. Diaries
to export processing zone taking into account 5. Letters
their contribution towards foreign trade and 6. Government reports
earrings. The study has also considered the 7. Web information
measures of Central Government to improve the 8. Historical data and information
performance of export processing zone and also 3.3. Data collection
suggested measures for their improvement. Data collection done through interactions
with customers
3. EXECUTION OF RESEARCH Research Instrument
DESIGN A questionnaire is
3.1. RESEARCH METHODOLOGY a research instrument consisting of a series
Research methodology is the systematic, of questions (or other types of prompts) for the
theoretical analysis of the procedures applied to purpose of gathering information from
a field of study (Kothari, respondents. The questionnaire was invented by
2004). Methodology involves procedures of the Statistical Society of London in 1838.
describing, explaining and predicting Although questionnaires are often designed
phenomena so as to solve a problem; it is the for statistical analysis of the responses, this is not
'how'; the process, or techniques of conducting always the case. Questionnaires have advantages
research over some other types of surveys in that they are
3.2. Research Design cheap, do not require as much effort from the
Research design adopted for this research questioner as verbal or telephone surveys, and
is “Descriptive Research “. It includes surveys often have standardized answers that make it
and fact-finding enquiries of different kinds. The simple to compile data. However, such
major purpose of descriptive research is standardized answers may frustrate users.
description of the state of affairs as it exists at Questionnaires are also sharply limited by the
present. fact that respondents must be able to read the

 
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questions and respond to them. Thus, for dollar (or any other foreign currency) appreciate
some demographic groups conducting a survey your business
by questionnaire may not be concrete. 4. DATA ANALYSIS AND
RESEARCH TOOLS INTERPRETATION
This part of study is mainly focused on The term analysis refers to the
verifying main objectives of study. Researcher computation of certain measures along with
used Chi square, simple percentage and searching for patterns of relationship that exist
graphs as statistical tool for analysis of data. among data groups. The data after collection has
HYPOTHESIS to be processed and analyzed in accordance with
HO: There is no significance relationship the outline laid down in research plan or research
between Age and Does the rising rupee value design. This is essential for a scientific study and
against dollar (or any other foreign currency) for ensuring that we have all relevant data for
appreciate your business making comparisons and analysis. Technically
H1: There is a significance relationship between processing of data implies editing, coding,
Age and Does the rising rupee value against classification and tabulation of collected data so
that they are available for analysis.

Table 4.1 Gender wise distribution of respondance

Gender Frequency Percent Valid Percent Cumulative Percent

Male 77 77.0 77.0 77.0

Valid female 23 23.0 23.0 100.0
Total 100 100.0 100.0

INTERPRETATION
In the above table 77% respondents are male and 23% respondents are female. According to
the analysis most of the employees are male.

 
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Table 4.2 Age wise distribution of respondance

Age Frequency Percent Valid Percent Cumulative

Percent

19 to 29 years 5 5.0 5.0 5.0

Valid
30 to 39 years 74 74.0 74.0 79.0
40 above 21 21.0 21.0 100.0
Total 100 100.0 100.0

INTERPRETATION
In the above table 5 % respondents are belongs to 19 to 29 years of age, 74% respondents are
belongs to 30 to 39 years of age, 21% respondents are belongs to above 40 years of age. According
to the analysis most of the employees are between 30 to 39 years of age

Degrees of freedom 5. CONCLUSION

= c-1 x r-1 It is concluded that size of the
= 3-1 x 3-1 organization significantly influence the
=2x2 marketing behaviour of exporters. And
=4 experience of the organization affect the
Calculated value 1.3839 marketing behaviour within certain size stages
Table value 9.49 beyond that it has insignificant influence. Further
HYPOTHESIS the size and experience of the organization play
HO: There is no significance relationship a significant role in classifying the exporters into
between Age and Does the rising rupee value three different stages, viz., medium-sized
against dollar (or any other foreign currency) exporters, experienced small exporters and less
appreciate your business experienced small exporters. Medium-sized
H1: There is a significance relationship between exporters who are more experienced, export to
Age and Does the rising rupee value against more number of countries and visit foreign
dollar (or any other foreign currency) appreciate countries frequently. Further this group of
your business exporters perceive marketing variables as more
important, less problematic and better
competitive advantage. With regard to marketing
orientation, this group of exporters collect more
 
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information, plan their activities better, improve
the products considerably, charge different
prices for different buyers in the same market
and also different market, use advertising,
participate in fair inside and outside of the
country and conduct the overseas business
through overseas branch office as well as foreign
dealers/distributors.

REFERENCES:
 Chandra Pankaj, (1999), Strategy for
Global Competitiveness of Indian Textile
Industry,
 Apte, P.G., "International Financial
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Publishing Company Limited, New Delhi,
2006.
 Bhatia, H.C., "International Economics",
Vikas Publishing House Pvt. Ltd, New
Delhi, Second Edition Reprint, 2007.
 Chand, Ramesh and Tiwari, S.C, "Growth
and Instability of Indian Export and Import
of Agricultural Commodities, Indian
Journal of Agricultural Economics
 Cherunilam, Francis, "International
Business Text and Cases'", Prentic-Hall of
India Pvt.Ltd., New Delhi, Fourth edition,
2007.
 Datt, Rudder and Sundharam, K.P.M.,
"Indian Economy", S. Chand and Company
Ltd, New Delhi, Revised Sixty First
Edition, 2010.

 
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