In simple terms, export management is the application of managerial process to the functional area of exports. It is a form of management which is required to bring about coordination and integration of all those involved in an export business. It is thus, concerned with securing export orders and achieving their successful completion in time as per the requirement specified by the foreign buyers.
The main objectives of export management (i) secure export orders and (ii) to ensure timely shipment of goods as per prescribed norms of quality and other specifications including terms and conditions agreed to between the export and the importer.
Nature of Export Management
The nature of export management can be rightly understood in the context of functional area of export and the managerial process involved in export management.
Classification of Export
The export can be classified into the following categories.
- Merchandise Exports
- Services Exports
- Project Exports
- Deemed Exports
Merchandise exports refer to the export of physical goods, for example, readymade garments, engineering goods, furniture, works of art etc.
Services exports refers to the export of goods that don’t exist in physical form, that is, professional, technical or general services. Examples of the exports would include export of computer softwares, architectural, entertainment or technical consultancy services etc.
Project export refers to establishment of a project by a business firm in another country. The term ‘Project’ as been defined as ‘non-routine, non-repetitive and one-off undertaking, normally with discrete time, financial and technical performance goals.’ It is viewed as scientifically evolved work plan devised to achieve a specific objective within a specific period of time.
‘Deemed Exports’ refer to those “transactions in which the goods are made in India, by the recipient of the goods.” The essential condition is that such goods are manufactured in India. This category of export has been introduced by the Export Import Policy of the Government of India. Some of the examples of goods regarded as ‘’Deemed Exports”, as given in Export-Import Policy (2002-07) are;
- Supply of goods against duty free licenses
- Supply of goods to projects financed by multilateral or bilateral agencies/Funds notified by the Department of Economic Affairs, Ministry of Finance, Government of India.
- Supply of goods to the power, oil and gas including refineries and so on.