Legal Environment for International Business

The major laws applicable to export-import transactions are: 1. Foreign Exchange Regulation Act Exporters get the price in foreign currency and importers have to pay the price in foreign currency. This required conversion of one currency into another. Section 18 of Foreign Exchange Regulation Act provides that for all cash exports the foreign exchange proceeds must bought back to India within a period of 180 days. The exporter therefore cannot enter into a contract with an importer under which he extends credit for more than 180 days. Similarly under the provision of FERA, an exporter cannot pay more than 12.5% to his agent in foreign countries for the services rendered by him unless he has obtained prior permission to the RBI to that effect. Most of the foreign exchange regulations have been liberalized ,therefore the FERA has been replaced by Foreign Exchange Management Act

2. Customs Act ,1962

The customs department of the Central Government is entrusted with the task of carrying out physical and documentary checks of all the articles crossing Indian Borders. All export consignments are to be checked by the customs authorities located near the port to ascertain whether the goods shipped are those declared in the documents and that there is over or under invoicing.

3.Pre-Shipment Inspection & Quality Control Act 1963

This Act provides that the GOI has provided that items of goods cannot be exported unless a designed agency certifies the quality of the product as per the standards prescribed. This has been provided in order to protect the countrys image in the international market. It is necessary to obtain the inspection certificate from the concerned authorities appointed by the government.

4. Foreign Trade Development And Regulation Act,1992.

This Act is the replacement for the Export import Act,1947. This Act provides that the Central Government is empowered to suspend or cancel a code No. granted to an exporter if the exporter has made exports or imports in grave negligence of the trade relations of Indian with any foreign country. Export policy Resolution of 1970 is the first comprehensive document covering all aspects of export policy of India. The global environment has changed considerably and many changes took place in the Indian economic situation. The first policy for a period of three years was announced for 1985-88 and thereafter from 1992-97 a new EXIM Policy is going on for 2002-07. The new policy is export oriented as well as employment oriented. The strategies mentioned in the new Foreign Trade Policy are impressive,like unshackling of controls, creating an atmosphere of trust and transparency, simplification of procedures and lowering transaction costs.

5. International Commericial Practices

The two important documents like Uniform Customs Practice for Documentary Credit(UCP)1993 and INCO Terms,1990 prepared by the international Chamber of Commerce,Paris are widely used in international business.

Trade terms published by the International Chamber of Commerce (ICC) that are commonly used in both international and domestic trade contracts. Incoterms, short for "International Commercial Terms," are used to make international trade easier by helping traders in different countries understand one another. Incoterms were first developed in 1936 and are updated from time to time, in order to conform to current trade practices. Because of these updates, contracts should specify which version of Incoterms they are using (e.g., Incoterms 2010).

INTRODUCTION
Packaging

is a process of covering, wrapping of goods into a package. Packaging involves desinging & producing the wrapper for a product.

Packaging

is next to grading and branding

is essential for Offering goods in safe, and secured position to consumer

Packaging

TYPES OF PACKAGING
CONSUMER PACKAGING INDUSTRIAL PACKAGING

-Designed for consumer

convenience & appeal, marketing consideration & display

- industrial packaging is focuses on the handling convenience & protection during transportation

The main emphaises Is on marketing

- the main emphaises is on logistics

FUNCTIONS OF PACKAGING
PRIMARY FUNCTION
Presentation

convenience

Protection

Economy

Preservatio n

Primary functions..
PRESENTATION:

presentation of product should be attractive & eye catching

 PROTECTION

- protection increases life cycle of a product

PRESERVATION

- It preserves original colours, Quality, favour etc

ECONOMY -

Packaging of a prodcut should be economy

CONVENIENCE

- packaging should be light to handle

SECONDARY FUNCTION
Containme nt

Handling

Identifica tion

Labeling

Suitabilit y

Secondary function

Containment: - premeasured , preweight and then placed in box

Identification : - packaging helps to indentify the products easily

Labeling : -it helps to promote the sale of goods

Handling:

- when package is light in weight it facilitate easy handling of cargo

Suitability:

- packaging should be match with the product

Factors for package design in international market

Physical

characteristics Language, colour and size Economy Container Convenience

The special factors to be considered in exportpackaging decisions:1.

2.
3. 4. 5. 6.

Regulation in the foreign countries. Buyers specification Socio-culture factors Retailing characteristics Enviromental factors Disposability

Indian institute of packaging

The

Indian institute of packaging was setup in Mumbai on 14th may 1966 institute of packaging is a registered body under the societies registration Act

Indian

Laboratories

are in Delhi , Chennai &

Kolkata

LABELING AND MARKING

The label is printed matters that appears on the package

Marking means putting some identification mark on the package during transportation and wharehousing