EXIM Project - Exporting Direct Dyes and Preparation to USA

Exporting Direct Dyes and Preparations

To USASubmitted to

Dr. P. K. Chugan

In partial fulfillment of the requirements of the course

Export Import Management

On

04/09/2012

By

Pankil Dalal (102131)

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AcknowledgementThis Export-Import Management assignment has been a wonderful learning. I am very

thankful to have got this opportunity to work on a satisfying project. I have gained an in-

depth knowledge on the topic. Apart from this I have had a wonderful feel of by learning

export procedure in USA. I express my indebt ness to Dr. P.K. Chugan (Institute of

Management, Nirma University) for providing me an opportunity to work on this assignment.

Certificate

I certify that the assignment is my own work and contains no plagiarism. Text, diagrams or

any other material taken from other sources (including but not limited to books, journals and

web) have been acknowledged, referred and cited.

Thanking you

Yours sincerely

Pankil Dalal

102131

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Index

Sr. No. Particular Page No.

1 Country Analysis 4

2 Direct Dyes 11

3 Indian Chemical Industry 13

4 Swot analysis of the Indian

chemical industry

14

5 FTP Provision for the Chemical Industry

16

6 Exporting to USA 17

7 Secret tips about doing Business in USA

18

8 Taxes to be paid on import to USA

19

9 Importing to USA 21

10 Factors affecting International Trade flows

21

11 Annexure 23

12 Bibliography 27

Country Analysis

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The United States of America (commonly called the United States, the U.S.,

the USA, America, and the States) is a federal constitutional republic consisting of fifty

states and a federal district. The country is situated mostly in central North America, where

its forty-eight contiguous states and Washington, D.C., the capital district, lie between

the Pacific and Atlantic Oceans, bordered by Canada to the north and Mexico to the south.

The state of Alaska is in the northwest of the continent, with Canada to the east and Russia to

the west across the Bering Strait. The state of Hawaii is an archipelago in the mid-Pacific.

The country also possesses several territories in the Pacific and Caribbean. At 3.79 million

square miles (9.83 million km2) and with over 314 million people, the United States is

the third- or fourth-largest country by total area and the third-largest by both land area

and population. It is one of the world's most ethnically diverse and multicultural nations, the

product of large-scale immigration from many countries.

Real gross domestic product (GDP) increased in 43 states and the District of

Columbia in 2011, according to new statistics released today by the U.S. Bureau of Economic

Analysis (BEA) that breakdown GDP by state. Durable-goods manufacturing, professional,

scientific, and technical services, and information services were the leading contributors to

real U.S. economic growth. U.S. real GDP by state grew 1.5 percent in 2011 after a 3.1

percent increase in 2010. State personal income growth accelerated to 0.8 percent in the first

quarter of 2012, from 0.4 percent in the fourth quarter of 2011.

Real GDP is growing, but less rapidly than in any other postwar recovery. Thirty-six

months after the start of the economic recovery, GDP is only 6.7 percent higher than it was

when the recovery officially began. As of the second quarter of this year, real GDP is 1.7

percent above its pre-crisis peak, having first surpassed this peak in the fourth quarter of

2011.

Prices have continued to fall even after the recession officially ended. The continued

weakness of nominal home prices is a postwar anomaly. In the current recovery, the collapse

in home prices has severely damaged household balance sheets. As a result, consumers have

avoided taking on new debt.

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The result is weak consumer demand and a slow recovery. The relative weakness of

this recovery is obvious in the labor market. Job losses continued throughout the first eight

months of the recovery. Payrolls have increased for the past twenty-two consecutive months.

Because of the depth of the recent recession, one might expect stronger-than-average

improvement in industrial production. Despite the predicted snapback, the increase in

industrial production during this recovery has been fairly typical of postwar recoveries.

Capacity in manufacturing, mining, and electric and gas utilities usually grows

steadily from the start of a recovery; however, during the current recovery, investment was

initially so slow that capacity declined. Since the start of last year, this trend has reversed

itself and industrial capacity has been steadily rising.

The pace of growth in world trade has slowed in recent months as global economic

growth has decelerated.

The federal deficit was much larger at the start of this recovery than it was in any

other postwar recovery. Although the deficit as a percent of GDP has shrunk slightly, its

level creates significant challenges for policymakers and the economy.

Geography:

Area: 9,629,090 sq. km. (3,717,813 sq mi);

Cities: Capital--Washington (pop. 6.1 million). Other cities—New York (82.4 million), Los

Angeles (38.1 million), Chicago (27.07 million), Huston (21.4 million), Philadelphia (15.3

million), Phoenix (14.6 million), San Diego (13.2 million), Dallas (12.2 million).

Terrain: vast central plain, mountains in west, hills and low mountains in east; rugged

mountains and broad river valleys in Alaska; rugged, volcanic topography in Hawaii.

Climate: January-April was the warmest such period on record for the contiguous United

States, with an average temperature of 45.4°F, 5.4°F above the long-term average. Twenty-

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six states, all east of the Rockies, were record warm for the four-month period and an

additional 17 states had temperatures for the period among their ten warmest.

Borders: Canada, Mexico, Coastlines

People: Capital: Washington, D.C.

Largest city: New York City

Official language(s): None at federal level.

National language: English

Government: Federal presidential constitutional republic, Two-party system

President: Barack Obama

Legislature: Congress

Current constitution: June 21, 1788

Population: 2012 estimate: 314,303,000

GDP: 2011 estimate total: $15.094 trillion

Per capita: $48,386

Economy:

Unemployment : 8.2% (May 2012)

GDP growth : 1.9% (1Q 2012), 1.7% (2011)

CPI inflation : 1.7% (May 2011 – May 2012)

Poverty : 15.1% (2010)

Public debt : $15.78 trillion (June 25, 2012)

Household net worth: $58.5 trillion (4Q 2011)

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The United States has a capitalist mixed economy, which is fueled by abundant

natural resources, a well-developed infrastructure, and high productivity. According to the

International Monetary Fund, the U.S. GDP of $15.1 trillion constitutes 22% of the gross

world product at market exchange rates and over 19% of the gross world product at

purchasing power parity (PPP). Though larger than any other nations, its national GDP was

about 5% smaller at PPP in 2011 than the European Union's, whose population is around

62% higher. The country ranks ninth in the world in nominal GDP per capita and sixth in

GDP per capita at PPP. The U.S. dollar is the world's primary reserve currency.

The United States is the largest importer of goods and third largest exporter, though

exports per capita are relatively low. In 2010, the total U.S. trade deficit was $635 billion.

Canada, China, Mexico, Japan, and Germany are its top trading partners. In 2010, oil was the

largest import commodity, while transportation equipment was the country's largest export.

China is the largest foreign holder of U.S. public debt.

The New York Stock Exchange on Wall Street, the world's largest stock exchange.

In 2009, the private sector was estimated to constitute 86.4% of the economy, with

federal government activity accounting for 4.3% and state and local government activity

(including federal transfers) the remaining 9.3%. While its economy has reached a

postindustrial level of development and its service sector constitutes 67.8% of GDP, the

United States remains an industrial power. The leading business field by gross business

receipts is wholesale and retail trade; by net income it is manufacturing. Chemical products

are the leading manufacturing field.

The United States is the third largest producer of oil in the world, as well as its largest

importer. It is the world's number one producer of electrical and nuclear energy, as well as

liquid natural gas, sulfur, phosphates, and salt. While agriculture accounts for just less than

1% of GDP, the United States is the world's top producer of corn and soybeans. Coca-Cola

and McDonald's are the two most recognized brands in the world.

Foreign trade of the United States

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Trade policy

United States trade policy has varied widely through various American historical and

industrial periods. As a major developed nation, the U.S. has relied heavily on the import of

raw materials and the export of finished goods. Because of the significance for American

economy and industry, much weight has been placed on trade policy by elected officials and

business leaders.

The Constitution gives Congress express power over the imposition of tariffs and the

regulation of international trade. As a result, Congress can enact laws including those that:

establish tariff rates; implement trade agreements; provide remedies against unfairly traded

imports; control exports of sensitive technology; and extend tariff preferences to imports

from developing countries. Over time, and under carefully prescribed circumstances,

Congress has delegated some of its trade authority to the Executive Branch. Congress,

however, has, in some cases, kept tight reins on the use of this authority by requiring that

certain trade laws and programs be renewed; and by requiring the Executive Branch to issue

reports to Congress to monitor the implementation of the trade laws and programs.

Constitutional authority

The Congress shall have power to lay and collect Taxes, Duties, Imposts and Excises,

pay the Debts and provide for the common Defense and general Welfare of the United States;

but all Duties, Imposts and Excises shall be uniform throughout the United States.

US Export and Import Statistics - Foreign Trade

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Trade with the Asia-Pacific Region

In addition to bilateral free trade, the Obama administration has also made regional

free trade in the Pacific a growing priority. In late 2009, U.S. Trade Representative Ron Kirk

announced that the United States would continue negotiations initiated by the Bush

administration a year prior with Australia, Brunei, Chile, New Zealand, Peru, Singapore,

Vietnam, and Malaysia over a new Pacific-based multilateral trade deal known as the Trans-

Pacific Partnership.

The Obama administration highlighted its commitment to implementing TPP when it

hosted the annual Asia Pacific Economic Cooperation summit in Honolulu in November

2011. Obama said the nine TPP nations had "reached the broad outlines of an agreement"

(CNN). At the same time, TPP received a boost when Japan indicated it would join the trade

negotiations (NYT). The eleventh round of TPP negotiations is set to be held in Melbourne,

Australia, in March 2012.

However, Asia's economic powerhouse, China, has not figured in the TPP

negotiations, fueling speculation on both sides of the Pacific that the United States is trying to

limit China's economic influence in the region. Writing in support of this policy on

ForeignAffairs.com, Bernard K. Gordon of the University of New Hampshire argues, "A

Trans-Pacific Partnership composed of Japan, the United States, Australia, and the group's

smaller economies represents a healthier alternative." The Financial Times' David Pilling

says TPP is a logical U.S. economic response to booming trade within Asia and between the

continent and other emerging markets. "The TPP is an attempt to regain the initiative by

opening up Asia-Pacific markets more fully to U.S. business," he writes.

A Future U.S. Trade Agenda

A September 2011 CFR Task Force Report on U.S. trade and investment policy calls

on the United States to develop an active, "pro-America" trade policy that seeks out untapped

foreign markets--while boosting the U.S. economy and job creation--and better uses trade as

a diplomatic and development tool. The report notes that trade as a percentage of U.S. GDP--

25 percent--is the lowest of any developed economy other than Japan. "It's also clear that

we're falling behind on trade, while other countries are pushing ahead," former Democratic

Senate majority leader Tom Daschle, a chair of the report, told CFR last year.

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The Obama administration has a wide-ranging trade agenda for 2012. In addition to

implementing last year's ratified FTAs and continuing TPP negotiations, the administration is

focused on opening up trade with Russia, which was admitted to the WTO in December.

At the periphery of the U.S. trade agenda sits the European Union. While the United

States and the EU are each other's largest trading partners--with trade flows of about $3.6

billion per day--the transatlantic partners have never negotiated a free trade agreement.

However, at the January 2012 World Economic Forum in Davos, both British Prime Minister

David Cameron and German Chancellor Angela Merkel called for developing an EU-U.S.

free trade deal, with Merkel noting, "the potential of our cooperation has not yet been tapped"

(AP). U.S. Trade Representative Ron Kirk responded that the United States was considering

an FTA (WSJ) with the EU as one of a number of potential options.

In the past, EU and U.S. leaders have resisted forging a bilateral FTA to avoid

undermining the Doha negotiations. But at Davos, Cameron and other leaders expressed

pessimism about the future of Doha. "We have to be frank about it. It didn't work," Cameron

said of last year's European push for renewed Doha talks.

Direct Dyes

During the last decade, the worldwide dyestuff

industry has been characterized by significant oversupply,

resulting in severe pressure on prices. As a result, most dyestuffs

producers have suffered significant financial losses and

major restructuring has taken place, especially in the United States, Western Europe and East

Asia, including Japan, the Republic of Korea, and Taiwan.

Currently, the major dye sourcing country is China, followed by India, Western

Europe (mainly Germany and Switzerland) and Taiwan. Major export markets include

Turkey, Brazil, Japan, Indonesia, the United States, the Republic of Korea, Mexico, and

Thailand. China has the largest trade surplus, followed distantly by India and Western

Europe. Since 2002/2003, both Turkey and Brazil have gradually increased their dependency

on imported dyes, as the dye consuming industries have expanded in these countries.

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The following pie chart shows world consumption of synthetic dyes:

During 2006–2010, consumption of dyes decreased in North and Central America,

Western Europe, and Japan, while it increased in South America, Central and Eastern Europe,

the Middle East, Africa, and Asia (with the exception of Japan). Japan was hit hard during the

2008/2009 economic recession. Other Asian countries were not hit as hard.

Consumption of dyestuffs is governed predominantly by several factors. The primary

long-term factor is demand for textiles, leather and colored paper. Consumption of textiles,

the largest end-use market for dyestuffs, in turn depends directly on population growth and

private (consumer) spending levels. The most important short-term factor is fashion, which

dictates the types of colors used. The quantity of dyestuffs consumed per textile volume is

considerably higher when bright or dark colors are desired than when only light colors are in

demand. Hence, the colors used for textiles have an impact on the total consumption of

dyestuffs. A lesser but still potentially important factor is the substitutability of organic

pigments for dyes, particularly in the textile printing segment but also in other segments such

as plastics and inks. On the other hand, specialty dyestuffs may also substitute for pigments

in selected markets; an example is the dyeing of modified polypropylene fibers, which are

normally pigmented.

Asia will continue to be the largest and fastest growing market for textile dyes, as

textiles remain a high-volume traded commodity produced in this region.

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In recent years, new legislation has affected dyestuff producers' product portfolios.

For instance, the European Commission banned many azo dyes in 2002 and navy blue (a

chromate-based azo dye, one of the most widely used dyes in the leather industry) in 2004.

Restrictions on azo dyes have impacted major dye and textile exporting countries such as

India. China and India, which together account for some 66% of global dye production, are

sensitive to such regulations. The ban on vat and azo dyes in some countries has paved the

way for reactive and disperse dyes in India. REACH (an EU regulation of chemicals), which

was enacted in 2007, also affects consumption of synthetic dyes. In China, several dye and

textile factories have been closed by the government for being either too polluting or too

energy intensive. Both Chinese and Indian textile dyes and chemicals suppliers are faced with

the challenge of reducing pollution and optimizing the use of resources.

The dyestuff industry clearly faces numerous challenges in this decade, but ample

opportunities will also present themselves for the most agile and innovative producers. For

example, the paper and specialty dyes markets are likely to show growth opportunities.

Manufacturing of paper chemicals is increasingly becoming concentrated in Asia's emerging

markets, where the future growth in the paper industry will originate.

Indian Chemical Industry

Chemical industry is an integral component of the Indian economy, which contributes

around 7 % of the Indian GDP. It touches our lives in several different ways. Whether it is

thermoplastic furniture we use, or a synthetic garment we wear, or a drug we take – we are

inextricably associated to it. The industry is integral to the development of agricultural and

industrial development in India and has key linkages with various other downstream, such as

automotive, consumer durables, engineering, food processing and more.

Growing at an average rate of 12.5%, the Indian chemical industry offers a wide

spectrum of opportunities for the investors both from India and the world. The significant

market potential, coupled with the existing pool of human resources, and the comprehensive

variety of resources in the country make it s profitable destination in the new millennium. In

the world production of chemicals, Indian industry stands at 12th position.

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Major segments of Indian chemical industry include

The Indian dye industry is valued at around US$ 3 billion, with exports of about US$

1 billion. The per capita consumption is very low (50 gms) as compared to average global

consumption (400gms). The industry is highly fragmented with 50 players in organized

sector and 900 in unorganized sector. (400 gms). The industry has undergone tremendous

over the years, starting as an intermediate manufacturing industry to full-fledged industry

with huge export potential. At present, India's share of the dye output globally stands at 5%,

with a manufacturing capacity of 1, 50,000 tons per annum.

SWOT ANALYSIS OF THE INDIAN CHEMICAL

INDUSTRY

STRENGTHS

Diversified Manufacturing Base

Vibrant downstream industries in different segments

Competitive core industries

Capability to produce world-class end products

Strong presence in the export market in sub-segments

Large domestic market

Major raw material component sources within the country

Good R&D base

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WEAKNESSES

Infrastructure

Cost Advantages

Scale of production

Technology

Multiplicity of taxes

Labour Laws

OPPORTUNITIES

Challenge to compete globally by concentrating on weaknesses

Markets in the developed countries

A large number of products going off patent.

Advantages in certain categories can be used for boosting exports.

Close to middle-east- cheaper and abundant source for petrochemicals feedstock.

Stringent environmental laws in the western countries

Climatic conditions in India

Competencies to utilize renewable resources

Competency to emerge as a global player in the area of Specialty chemicals.

THREATS

Imports of chemicals, intermediates and end products

Tariff levels for chemicals

Greater competition due to

Chinese products

Bilateral/multilateral trade agreements

The labor laws, power supply and infrastructure facilities

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FTP Provision for the Chemical Industry

Exports and Imports shall be free, except where regulated by FTP or any other law

enforce.

The procedure for facilitating foreign direct investment has been simplified. Most of the

chemical items fall under the RBI’s automatic approval route for FDI/NRI investment

upto100 per cent.

Expansion of FMS: - Focus Market Scheme (FMS) has been expanded by adding 26 new

markets, out of which 16 are in Latin America and 10 in Asia-Oceania. Incentive under

the scheme has been enhanced from 2.5% to 3%.

Expansion of FPS: - Incentive under the scheme has been enhanced from 1.25% to 2%.

Duty free import of specialized inputs /chemicals and flavoring oils is allowed to the

extent of 1% of FOB value of preceding financial year’s export.

Free imports of samples by exporters- Number of free samples allowed is increased

from15 to 50 as per para 49 of Highlights of Foreign Trade Policy announced on 27-8-

2009. It seems the change will be effective after relevant customs notification is suitably

modified.

Customs Duty

1. The peak rate of Customs Duty on most Chemicals is 7.5%

2. On basic raw materials like sulphur, rock phosphate, natural borates is 5%

3. On most building blocks & feedstock the duty is 5% (ethylene, propylene, benzene,

toluene, xylene)

Excise Duty-On almost all chemicals the excise duty is 16%

EPCG scheme Zero duty EPCG scheme - A "zero duty" EOCG scheme has been

introduced in FTP 2009-14 for a limited period i.e. up to 31-3-2011.The scheme is

available for exporters of engineering and electronic products, basic chemicals and

pharmaceuticals, apparels and textiles, plastics, handicrafts, chemicals and allied products

and leather and leather products, except those excluded in HBP Vol. 1.

Manufacture under Bond-Under the Manufacture under Bond Scheme, all factories

registered to produce their goods for export are exempted from import duty and other

taxes on inputs used to manufacture such goods. Against this the manufacturer is allowed

to import goods without paying any customs duty. The production is made under the

supervision of customs or excise authority.

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Duty exemption and remission schemes

The Government has been taking various steps for augmenting the export.

Some of the important measures taken by the Government are as follows:-

1. Extension of the Duty Entitlement Pass Book (DEPB) Scheme up to December

31,2009;

2. Providing pre and post-shipment credit assistance in rupees as well as in dollars;

3. Reduction in import duties of raw materials; and

4. Reduction in interest rates on export finance; etc

Exporting to USA

Product: Direct Dyes & Preparations based thereon

ITC (HS) Code: 320414

Status: Freely Tradable

Exporting Procedure:

To start with any export, one has to obtain Import-Export Code Number issued the

office of the Director General of Foreign Trade. In all foreign trade as well as foreign

exchange documentation you have to mention IE code number.

RBI Code for duty draw-back from the Indian government. If the same is not being

posses by company they will not get duty draw back.

To export any dyes we need to have chemexl registration.

For manufacturer of dyes company should have excise license, sales and vat

registration done.

Company need to have clearance certificate / NOC from the pollution board of the

state.

To export the goods company need to fill ARE-1 for excise department. This includes

packing list and invoice of the importing party in USA.

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Company appointed C&F agent will go to customs department and give NOC.

After clearance from the customs C&F will take the goods to shipping company and

company will take the marine insurance for their goods.

Shipping company will generate the BL and it will be hand over to the company by

C&F agent.

Company went to bank for the processing of the BL documents. If company do direct

dealing with the party then the bank procedure will not be in the process.

Secret tips about doing Business in USA

Most industries in the U.S. have very clear, defined rules of conduct. It’s crucial to know

how things work (even if you plan to break the rules). For example when selling to big

retail chains, buyers decide by March what will be on their shelves the following year. If

you approach them in April, you will not be considered. In other countries, these rules are

not so rigid.

American system of business is so rigid, bending the rules and/or cutting corners are not

recommended. Also, while it is a very rigid system, it is extremely pro-business and

accommodating. Even if a law or regulation doesn’t make sense, it’s usually easier to

work with these rules than try to go around them. Most Americans don’t question the

rules or authority, while it’s much more common for foreign nationals to want to work

outside the system if they think they know a better way.

Doing business in America is easier than in other countries. Almost any business service

imaginable already exists. It’s remarkably easy for startups to leverage this pro-business

climate and appear like a mature, big business from day one.

American employees subscribe to a “think inside the box” mentality – to do your job and

not beyond that. This ethic has contributed greatly to the U.S.’ success. By ensuring that

each employee does what they need to do – nothing more, nothing less – if the master

plan was designed well, then everything will work as planned and scale correctly. By

contrast, Europeans – especially those working for small companies – tend to work

beyond what’s required, because the work needs to get done. For many Americans, this

“someone had to do it” concept is incomprehensible.

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American ‘consumers’ more than live up to that title. Foreign nationals doing business in

the U.S. are often surprised by American consumers’ willingness to spend future income

they haven’t yet earned, while saving little if nothing for the future.

While the power of celebrity is felt around the world, in the U.S. it has unique and direct

business implications. Companies able to score an important celebrity endorsement (e.g.,

appear on The Oprah Winfrey Show during its peak), could see their business change

overnight. Outside the U.S., celebrity followings are not as passionate, markets are

smaller and populations don’t have as intense a ‘consumer mentality.’

Very often, business ventures get only one shot to succeed. “I don’t have,” and, “We

can’t do that,” are unacceptable phrases in American business. Companies must deliver

what’s been promised; if a major deadline or target is missed just once, sometimes that’s

all it takes for major collaborators and partners to look elsewhere.

America is all about the money. It’s not as if there are no other values, but money is the

biggest value, and everything revolves around it.

Taxes to be paid on import to USA

U.S. Customs and Border Protection (CBP) collect on goods being imported into the United

States. CBP collects federal taxes and fees on behalf of other federal agencies and under the

Consolidated Omnibus Budget Reconciliation Act (COBRA).

Import Duty

State Tax

Federal Excise Tax

User Fees

o Merchandise Processing Fee (MPF)

o Harbor Maintenance Fee (HMF)

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Import Duty

Importer has to pay the import duty while importing the goods to the USA. For some

of the dyes there is import duty is not levied by the government of the USA. Also there are

trade unions with other country so importer in the USA has to pay the duty.

State Tax

To enter the goods in the particular state importer has to pay additional state tax to

the government of the particular state.

Federal Excise Tax

Additional tax is required depends on the commodity being imported. For example,

imports of alcoholic beverages and tobacco products are subject to Federal Excise Tax. The

Internal Revenue Service establishes the amount of this tax and CBP collects it on their

behalf.

User Fees

The user fee and amount collected by CBP depends on the type of entry and mode of

transportation used to bring the goods into the United States. For instance, formal and

informal entries are subject to a Merchandise Processing Fee (MPF).

The MPF for formal entries is an ad valorem fee of 0.3464 percent. The maximum

amount of the fee shall not exceed $485 and shall not be less than $25. The fee is based on

the value of the merchandise being imported, not including duty, freight, and insurance

charges. MPF for informal entries (i.e. goods imported via mail etc.) is a set fee and ranges

from $5.00 to $9.00 per shipment.

If the mode of transportation is via ship a Harbor Maintenance Fee (HMF) is collected

by CBP. HMF is .125 percent of the value of the commercial cargo shipped through

identified ports. HMF is not collected on cargo imported or transported via air or mailed.

However, goods that are shipped are subject to both MPF and HMF.

The US does not have a VAT tax. Many jurisdictions have a sales tax, but that would

not be applicable to you unless you have offices in US.

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Importing to USA

When the customer of USA imports the material they have to surrender their original B/L

to custom.

Direct dyes falls under Chapter heading 3204.14.50)

Custom will ask to deposit duty @ 11% on CIF Value declare in Invoice 2% additional

duty on this + clearing charges + container cleaning charges+ (this will collect by

shipping line)

Local fright importer has to pay from port to his warehouse.

US importer has to pay vat to his state when he sells these goods to his customer.

Factors affecting International Trade flows

International trade deals with the difference between the import and export of the

country, which shows total economy of the country in terms of GDP. Every country has its

different economy which depends upon its import and export. There are several factors that

affect international trade that include exchange rates, tariffs and prosperity abroad. Internet

is the main media of the international trade as it facts as a bridge between several countries

for every kind of interaction. Still exchange rate affects international trades which may

increase or decrease with every time period. Every country gets affected by these three

factors. If any country would like to export or import any product from another country so

firstly it looks towards the exchange rate which depends upon the stock exchange value of

the international market.

Importance:

Several small and large scale organizations in the world follows business to business

approach or B2B approach as to make efficient international trade. Due to increase and

decrease of the market value of the currency, the international trade gets affected. With this

international trade the Economy also gets affected resulting GDP. Sometimes, only country’s

recession also affects another country, which is the resultant of improper or more utilization

of the overall revenue of the country. Several processes of import and export include custom

clearance, excise duty and other financial charges that affect the international trade. Several

factors that affect international market are widely considered throughout the world. Each and

every country does international trade as per the value of currency in each country. The

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payment process of international process these days is done by internet payment services.

There are several banks also which provides the international money transfer.

Significance:

Every year the customization in international trade helps in making smooth

international trade. It is assumed that the B2B process resolves several complexities of

international trade such as billing process, custom clearance. This also helps in reducing the

overall cost of international trade. Several other factors that affect international market are the

increase in industrialization. For a single product in the market there are several industries

which price value makes the difference between the companies.

These factors are used to evaluate the growth as well as performance of the organization in

terms of international trade. Mainly international trade is getting affected these days with the

competitive industries and currency values. The increase and decrease in currency values

affects the production of the industry as well hence the annual turnover. The international

trade parameters are customized every year by international trade systems. There are several

industries in the international market whose market presence is excellent due to their

excellent international trade from the past. The main aim of any industry behind its

production is the satisfaction level and some unique value in its production as to make the

production attractive by the consumer. The main important thing what it remains these days

is the client relationship between the organizations. In food, clothes and electronics the

competition in industries has increased so far and each and every industry increase its export

these days as to increase the production and make a high profile in international market.

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AnnexureRupees Wise Data 11-12

Department of Commerce

Export Import Data BankExport :: Commodity-wise 8 digit level

* ITC HS Code of the Commodity is either dropped or re-allocated from April 2011

Commodity: 320414 DIRECT DYES & PREPARATIONS BASED THEREON

Values in Rs. Lacs

S.No. HSCode Commodity 2010-2011 %Share2011-

2012(Apr-Sep)

%Share

1 32041411 DIRECT YELLOW 12 (CHRYSOPHENINE G)-AZO

515.83 0.0005 196.07 0.0003

2 32041419 OTHER DIRECT YELLOW -AZO 3,511.66 0.0031 2,254.18 0.0032

3 32041421 DIRECT RED (CONGO RED) AZO 835.48 0.0007 543.03 0.0008

4 32041429 OTHERS DIRECT RED (AZO) 859.6 0.0008 481.11 0.0007

5 32041431 DIRECT BLUE 1(SKY BLUE FF) AZO

81.43 0.0001 5.55 0

6 32041439 OTHERS DIRECT BLUE (AZO) 2,153.35 0.0019 1,083.17 0.0016

7 32041440 DIRECT ORANGES (AZO) 277.14 0.0002 125.3 0.0002

8 32041450 DIRECT GREEN (AZO) 68.64 0.0001 46.06 0.0001

9 32041460 DIRECT BROWN (AZO) 220.19 0.0002 23.9 0

10 32041470 DIRECT BLACK (AZO) 4,362.43 0.0038 2,097.99 0.003

11 32041481 DIRECT (NON AZO) YELLOWS 1,807.38 0.0016 776.89 0.0011

12 32041482 DIRECT (NON AZO) ORANGES 269.9 0.0002 79.17 0.0001

13 32041483 DIRECT (NON AZO) REDS 1,623.82 0.0014 564.13 0.0008

14 32041484 DIRECT (NON AZO) VIOLETS 218.49 0.0002 116.08 0.0002

15 32041485 DIRECT (NON AZO) BLUES 2,029.06 0.0018 920.48 0.0013

16 32041486 DIRECT (NON AZO) GREENS 269.67 0.0002 34.46 0

17 32041487 DIRECT (NON AZO) BROWNS 216.66 0.0002 137.65 0.0002

18 32041488 DIRECT (NON AZO) BLACKS 4,307.66 0.0038 2,104.47 0.003

19 32041489 OTHER DIRECT NON AZO DYES 159.68 0.0001 113.42 0.0002

20 32041490 OTHER DIRECT DYES& PREP. BASED THEREON

300.91 0.0003 181.94 0.0003

Total 320414 DIRECT DYES & PREPARATIONS BASED THEREON

24,088.98 0.0211 11,885.05 0.0171

Page 23 of 27

India's Total Export 11,42,64,897.18 6,96,94,161.36

S.No. HSCode Commodity 2010-20112011-

2012(Apr-Sep)

%Growth

939 320414 DIRECT DYES & PREPARATIONS BASED THEREON

4,529.11 2,068.21

S.No. HSCode Commodity 2010-20112011-

2012(Apr-Sep)

%Growth

1043 320414 DIRECT DYES & PREPARATIONS BASED THEREON

7,096.39 3,238.07

Volume Wise Data 11-12

Department of CommerceExport Import Data Bank

Export :: Commodity-wise 8 digit levelQuantity in Thousands



S.No. HSCode Commodity Unit2010-2011

2011-2012(Apr-Sep)


KGS 150 40.85

2 32041419 OTHER DIRECT YELLOW -AZO KGS 4,421.39 2,705.54

3 32041421 DIRECT RED (CONGO RED) AZO KGS 427.15 259.99

4 32041429 OTHERS DIRECT RED (AZO) KGS 266.87 168.16

5 32041431 DIRECT BLUE 1(SKY BLUE FF) AZO KGS 23.6 4.25

6 32041439 OTHERS DIRECT BLUE (AZO) KGS 1,088.91 470.46

7 32041440 DIRECT ORANGES (AZO) KGS 207.93 103.34

8 32041450 DIRECT GREEN (AZO) KGS 21.5 18.25

9 32041460 DIRECT BROWN (AZO) KGS 104.6 8.06

10 32041470 DIRECT BLACK (AZO) KGS 2,458.19 1,063.15

11 32041481 DIRECT (NON AZO) YELLOWS KGS 1,392.27 559.74

12 32041482 DIRECT (NON AZO) ORANGES KGS 114.54 36.93

13 32041483 DIRECT (NON AZO) REDS KGS 632.69 205.26

14 32041484 DIRECT (NON AZO) VIOLETS KGS 99.1 40.53

15 32041485 DIRECT (NON AZO) BLUES KGS 821.67 316.72

16 32041486 DIRECT (NON AZO) GREENS KGS 92.5 6.97

17 32041487 DIRECT (NON AZO) BROWNS KGS 118.47 58.49

18 32041488 DIRECT (NON AZO) BLACKS KGS 2,531.75 1,188.14

19 32041489 OTHER DIRECT NON AZO DYES KGS 131.01 84.83


KGS 137.35 76.79

Page 24 of 27

Volume Wise Data 10-11


Export :: Commodity-wise 8 digit levelQuantity in Thousands



S.No. HSCode Commodity Unit2009-2010

2010-2011

%Growth


KGS 161.88 150 -7.34

2 32041419 OTHER DIRECT YELLOW -AZO

KGS 3,584.90 4,421.39 23.33

3 32041421 DIRECT RED (CONGO RED) AZO

KGS 125.8 427.15 239.55

4 32041429 OTHERS DIRECT RED (AZO) KGS 119.98 266.87 122.42


KGS 13.78 23.6 71.24

6 32041439 OTHERS DIRECT BLUE (AZO)

KGS 519.8 1,088.91 109.49

7 32041440 DIRECT ORANGES (AZO) KGS 48.76 207.93 326.48

8 32041450 DIRECT GREEN (AZO) KGS 29.75 21.5 -27.75

9 32041460 DIRECT BROWN (AZO) KGS 48.41 104.6 116.08

10 32041470 DIRECT BLACK (AZO) KGS 2,025.47 2,458.19 21.36

11 32041481 DIRECT (NON AZO) YELLOWS

KGS 802.06 1,392.27 73.59

12 32041482 DIRECT (NON AZO) ORANGES

KGS 61.34 114.54 86.74

13 32041483 DIRECT (NON AZO) REDS KGS 410.79 632.69 54.02

14 32041484 DIRECT (NON AZO) VIOLETS

KGS 90.87 99.1 9.06

15 32041485 DIRECT (NON AZO) BLUES KGS 603.9 821.67 36.06

16 32041486 DIRECT (NON AZO) GREENS KGS 34.27 92.5 169.89

17 32041487 DIRECT (NON AZO) BROWNS

KGS 48.29 118.47 145.34

18 32041488 DIRECT (NON AZO) BLACKS KGS 2,968.52 2,531.75 -14.71

19 32041489 OTHER DIRECT NON AZO DYES

KGS 62.21 131.01 110.6


KGS 60.85 137.35 125.71

Rupees Wise Data 10-11


Page 25 of 27

Export :: Commodity-wise 8 digit levelValues in Rs. Lacs



S. No. HS Code Commodity 2009-2010%Sha

re2010-2011

%Share

%Growth


418.28 0.0005 515.83 0.0005 23.32

2 32041419 OTHER DIRECT YELLOW -AZO

3,298.55 0.0039 3,511.66 0.0031 6.46

3 32041421 DIRECT RED (CONGO RED) AZO

271.51 0.0003 835.48 0.0007 207.71

4 32041429 OTHERS DIRECT RED (AZO)

281.6 0.0003 859.6 0.0008 205.26


27.71 0 81.43 0.0001 193.83

6 32041439 OTHERS DIRECT BLUE (AZO)

1,123.11 0.0013 2,153.35 0.0019 91.73

7 32041440 DIRECT ORANGES (AZO) 104.97 0.0001 277.14 0.0002 164.03

8 32041450 DIRECT GREEN (AZO) 60.62 0.0001 68.64 0.0001 13.22

9 32041460 DIRECT BROWN (AZO) 80.14 0.0001 220.19 0.0002 174.76

10 32041470 DIRECT BLACK (AZO) 3,558.75 0.0042 4,362.43 0.0038 22.58

11 32041481 DIRECT (NON AZO) YELLOWS

1,071.56 0.0013 1,807.38 0.0016 68.67

12 32041482 DIRECT (NON AZO) ORANGES

147.58 0.0002 269.9 0.0002 82.89

13 32041483 DIRECT (NON AZO) REDS 1,060.34 0.0013 1,623.82 0.0014 53.14

14 32041484 DIRECT (NON AZO) VIOLETS

296.54 0.0004 218.49 0.0002 -26.32

15 32041485 DIRECT (NON AZO) BLUES 1,506.77 0.0018 2,029.06 0.0018 34.66

16 32041486 DIRECT (NON AZO) GREENS

151.91 0.0002 269.67 0.0002 77.52

17 32041487 DIRECT (NON AZO) BROWNS

81.87 0.0001 216.66 0.0002 164.63

18 32041488 DIRECT (NON AZO) BLACKS

4,623.96 0.0055 4,307.66 0.0038 -6.84

19 32041489 OTHER DIRECT NON AZO DYES

105.59 0.0001 159.68 0.0001 51.22


132.96 0.0002 300.91 0.0003 126.31

Total 320414 DIRECT DYES & PREPARATIONS BASED THEREON

18,404.34 0.0218 24,088.98 0.0211 30.89

India's Total Export8,45,53,364.3

8 11,42,64,8

97.18 35.14

Bibliography

Page 26 of 27

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Americans

http://www.cfr.org/trade/us-trade-policy/p17859

http://www.census.gov/foreign-trade/statistics/graphs/TopPartners.html#exports

http://www.ihs.com/products/chemical/planning/ceh/dyes.aspx

http://dgft.gov.in/

Page 27 of 27

EXIM Project - Exporting Direct Dyes and Preparation to USA

Documents

economic recovery

postwar recovery

percent of gdp

slow recovery

current recovery

real gdp

percent increase

fortyeight states