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INTERNATIONAL BUSINESS 265 develop exports of different categoriesquality products are exported from the of products. We shall discuss about country. One such step is compulsory export promotion councils in a later inspection of certain products by a section. But it may be mentioned here competent agency as designated by that it is necessary for the exporter tthe government. The government has become a member of the appropriate passed Export Quality Control and export promotion council and obtain Inspection Act, 1963 for this purpose. a Registration cum Membership and has authorised some agencies Certificate (RCMC) for availing benefitto act as inspection agencies. If the available to export firms from the product to be exported comes under Government. such a category, the exporter needs to Registration with the ECGC contact the Export Inspection Agency is necessary in order to protect (EIA) or the other designated agency overseas payments from political and for obtaining inspection certificate. commercial risks. Such a registration The pre-shipment inspection report also helps the export firm in getting is required to be submitted along financial assistance from commercial with other export documents at the time of exports. Such an inspection banks and other financial institutions. (v) Obtaining pre-shipment finance: is not compulsory in case the goods Once a confirmed order and also a are being exported by star trading letter of credit have been received, houses, trading houses, export houses, the exporter approaches his banker industrial units setup in export for obtaining pre-shipment finance processing zones/special economic to undertake export production. Pre- zones (EPZs/SEZs) and 100 per cent shipment finance is the finance that export oriented units (EOUs). We shall the exporter needs for procuring raw discuss about these special types of materials and other components, export firms in a later section. processing and packing of goods and (viii)  Excise clearance: As per the transportation of goods to the port of Central Excise Tariff Act, excise shipment. duty is payable on the materials (vi)  Production or procurement used in manufacturing goods. The of goods: Having obtained the pre- exporter, therefore, has to apply to shipment finance from the bank, the the concerned Excise Commissioner exporter proceeds to get the goods in the region with an invoice. If the ready as per the specifications of the Excise Commissioner is satisfied, importer. Either the firm itself goes ihe may issue the excise clearance. for producing the goods or else it buysBut in many cases the government from the market. exempts payment of excise duty or (vii) Pre-shipment inspection: The later on refunds it if the goods so Government of India has initiated manufactured are meant for exports. many steps to ensure that only good The idea underlying such exemption Reprint 2026-27