Tuesday, 17 November 2020

SERVICE INSTITUTIONS (IM 17 Nov 2020)

SERVICE INSTITUTIONS

Meaning

 

In India a large number of service institutions have been set up to facilitate the exporters in their task of promoting exports. These service institutions have been active in the area of developing resource personnel for exports, market research, export finance, export credit insurance, publicity, packaging, quality control, transport in the export field. Some of the pioneer institutes in the areas of service are the following:

 

1. INDIAN INSTITUTE OF FOREIGN TRADE (IIFT) In post-independence period, India switched over traditional items and diversified its export trade to almost every country of the world instead of only to Britain. Consequently, India experienced a dearth of trained and skilled personnel so essential for the development of export trade. Establishment

 

The Indian Institute of Foreign Trade (IIFT) was set up in 1963 as an autonomous body registered under the Societies Registration Act.

Functions

1. Trainings of personnel in export trade.

2. Research projects in furtherance of export.

3. Collection of documents and data on all aspects of export trade.

 

1. Training Functions

(i) Conducting training programmes. It conducts training programmes of high standard in the development of techniques, methods and procedures of international trade for executives and personnel employed in trade and industry, export house, export organisation, Government departments, trading corporations, and Indian embassies and consulates abroad. These programmes are organised for short term as well as long term duration.

 

(ii) Special training programmes. These are developed on the requests from various organisations to suit their needs.

(iii) Sponsoring candidates. The institute sponsors candidates from trade and industry, exports houses, Government departments, trading corporation etc. This is for the higher training abroad in the Export Management and Export Techniques for acquiring the first-hand knowledge of export techniques, methods and procedures adopted in advanced countries in export marketing.

2. Research and Surveys

(i) Marketing research and surveys. The institute plans, organises, sponsors and commissions marketing research and area surveys in foreign countries in accordance with the planned programme. The main objective of such research and surveys are:

(a) to ascertain the characteristics of foreign markets and consumer preferences,

(b) to assess the current and potential demand of Indian products in these markets, and (c) to determine the scope and the techniques to be adopted for and increased absorption of Indian products.

 

(ii) Commodity studies. The institute undertakes commodity studies within the country in order to identify new products, develop new uses of plans for their development, processing and export.

 

(iii) Research programmes. The institute undertakes and sponsors research programme of its own on various problems of international trade. It also undertakes research programmes into the problems referred to it by industry and trade and the Government.

 

(iv) Consultancy services. The institute provides consultancy service to firms in matters relating to export.

 

(v) Reference library. The institute has an excellent reference library with a wide range of publications and periodicals of international organisations like UNCTAD, GATT, UNO etc. and others on all aspects of international trade.

 

3. Collection and dissemination of information. The institute collects various types of data and information regarding foreign trade. It maintains all reports of surveys and research programmes. It disseminates information through its monthly journal 'Foreign Trade Bulletin' about new decisions and developments affecting foreign trade. It publishes a quartertly journal 'Foreign Trade Review containing reports on various production and market studies undertaken by it from time to time.

 

2. THE TRADE DEVELOPMENT AUTHORITY (TDA)

 

In pursuance of its Export Policy Resolution of 1970 for providing package assistance to medium and small-scale sector enterprises at micro-level after identifying the potential of their products and their requirements of assistance TDA was set up by the Government of India in 1971.

 

Functions in Export

1. Growth. It identifies the short-term and long-term prospects of growth of selected products in the selected markets. For this purpose, it identifies technically competent and commercially viable units especially in medium and small-scale sector.

 

2. Expansion. It assists in the expansion of export-oriented facilities in the selected products and areas.

 

3. Product Development. It assists in product development/ adoption and helps in raising the technological level of the selected industrial exports.

 

4. Information. It collects and processes all relevant information concerning trade, production and commercial activities and after a careful rescarch and analysis of relevant factors to build up export with minimum resources, chooses the units, products and markets for their proper development.

 

5. Contacts. It arranges contacts between selected Indian exporters and foreign buyers of standing and repute and facilitate conclusion of contracts with the objective of long-term exports.

 

6. Services. As soon as the contract is concluded, the TDA arranges for a package of services falling within or outside the jurisdiction of the Government, including arrangement of raw materials and balancing equipment, piloting through production control system financing credits, marketing and merchandising and other aids.

 

7. Sub-contracting. T.D.A. makes special endeavour to attract international subcontracting of engineering and other components from India and promotion of joint ventures in the country in conjunction with the Indian Investment Centre.

 

8. Extension in Items and Scope. Initially, the TDA confined its activities to 18 product groups, comprising about 150 items for intensive export development and also for rendering its package assistance to them. Now, it has taken a number of new items and formally concentrated its activities in some selected countries such as Japan, USA and the European countries. Now it has extended its activities to Canada, Australia, New Zealand, ASEAN, Hong Kong, South Korea, Saudi Arabia, Iran, Iraq and Kuwait.

 

Mode of Working

1. It undertakes the responsibility either directly or through some export promotion organisations, as may be appropriate to each product area. Ordinarily it extends the package of services to exporters only through export agencies.

 

2. It provides a full range of services free of charge to overseas buyers, including informing and advising them of product availability, price structure, quality control delivery schedule, reliable sources of supply and other necessary information.

 

3. It has organised many buyer-seller meets which received good response from the visitors.

 

4. In its promotional efforts, the TDA has organised a number of study tours and participated in foreign trade fairs and exhibitions. It also has invited many delegations to India.

 

5. The TDA plans, organises, co-ordinates and assist market researching and analysis. It disseminates market intelligence and trade information through a weekly ‘Trade Intelligence Bulletin' containing information regarding developments in international field.

 

The TDA work, through (i) Information Divison (ii) Research and Analysis Division, and (iii) Merchandising Division. It has set up its overseas offices at Frankfurt, Monrovia, New York, Stockholm and Tokyo.

 

3. THE FEDERATION OF INDIAN EXPORT ORGANISATION (FIE)

 

With its registered office at Delhi the FIE was set up by the Government in 1965. A non-profit servicing organisation registered under the Societies Registration Act FIE represents about 50,000 exporters. It is an apex body that co-ordinates and supplements the activities of various export promotion agencies and exporting interests. It provides a common and coordinating platform for the various export promotion organisations including Commodity boards and Export Promotion Councils and the service institutions and organisations. It deals with the common problems of India's exports or of those commodities for which there is no specific Board or Council. It is a federation of all export organisations and interests including Commodity Board, Export Promotion Councils, the Export Credit and Guarantee Corporation, the Reserve Bank of India, the Industrial Development Bank of India, the Institute of Foreign Trade, the Trade Development Authority, Chamber of Commerce, Trade Associations, Banks, Consultancy Services, Government Recognised Export Houses and leading individual interests.

 

Objectives and Activities

 

1. To increase the foreign exchange earning through diversification and increase in India's exports of goods and services.

 

2. To coordinate the export promotion activities of its constituents to avoid duplication.

 

3. To convene meetings, conferences, seminars and work-shops to provide an opportunity to all sectors of export community and export promotion institutions to view, discuss and wherever necessary to formulate recommendations to Government and other authorities, or problems relating to export trade.

 

4. To sponsor study teams, to send trade delegations abroad and to invite trade delegations from abroad. It also arranges 'round table' conferences of exporters with trade missions and other business interests on a visit to India.

 

5. To sponsor and undertake commodity and market surveys and select and disseminate commercial intelligence.

 

6. To undertake publicity abroad by projecting Indian goods and services in different world languages through various media, including films, exhibitions, advertisements and publications. It also participates in and organises trade fairs and exhibitions.

 

7. To open regional offices, trade and design centres and showrooms and to appoint representatives, agents and correspondents in India or abroad.

 

8. To prepare, print and publish papers, periodicals or reports of research and surveys, seminars, workshop etc.

 

9. To provide common services for these benefits of exporters and export organisations and to act generally as the forums of export promotion and to provide facilities for the settlement of disputes arising in the course of foreign trade.

 

10. To maintain overseas liaison with international and U.N. agencies like ITC, GATT, UNCTAD, ESCAP, UNIDO etc. and to initiate projects with the support of some of these agencies.

 

11. To estabilsh rapport and to maintain sustained dialogue with overseas chambers of commerce, trade associations and the concerned Government departments.

 

12. To sponsor special projects related to the export promotion of India's consultancy services.

 

13. To execute projects and responsibilities entrusted to it by the Government of India from time to time and to serve as a forum for two-way transmission of views and information between Government departments and the exporting community.

 

14. To pay special attention to the development and needs of the export houses and consultancy firms which play major roles in substantially increasing exports.

 

4. THE EXPORT INSPECTION COUNCIL (EIC)

With the objective of exporting Indian goods of good quality and for lending confidence in overseas buyers in respect of the quality of Indian goods, the Government of India passed the Export (Quality control and Inspection) Act, 1963 under which were notified products subject to compulsory quality control or inspection or both before shipment. At present 850 items representing about 80 per cent of export commodities are on the list of compulsory preshipment inspection.

 

 

 

Functions and Objectives

The Export Inspection Council was set up by the Government of India for the ahead functions :

1. It counsels the trade and industry and holds detailed discussions with them and other export promotion organisations.

 

2. It studies buyer's needs before formulating standards for a preshipment inspection of export products.

 

3. It has come out with various schemes of quality control and preshipment inspection such as declaring certain manufacturing organisations, which have their own quality control system as export worthy. It has also decided to have a new scheme of self-certification according to which the organisations issue their own certificates of quality which are accepted subject to certain rules and regulations to be formulated by the council.

 

4. It is charged with the responsibility of establishing laboratories and test houses throughout the country for the provision of inspection facilities in regard to notified commodities.

 

5. It recommends the Government of India (i) the commodities to be notified under the Act, (ii) the type of quality control or inspection, and (iii) the inspection agencies to be recognised for quality control.

 

EIC has set up five inspection agencies, one each at Delhi Mumbai, Kolkata, Mumbai and Cochin, under which the quality inspection officials operate in various parts of the country.

 

5. THE EXPORT CREDIT GUARANTEE CORPORATION (ECGC)

Under the administrative control of the Ministry of Commerce, The Export Credit Guarantee Corporation was established in 1964 with head office in Mumbai. It aims at minimising risk element in export business and to facilitate the flow of finance from the banks to exporters. It has started many special schemes to facilitate the exporters. It is wholly owned by the Government of India and works on no-profit no-loss basis. The corporation provides following types of covers to suit the varying needs of the exporters.

Covers to Exporters

(i) Standard policies to cover the risk of trading of exporters with overseas as buyers as credit items.

(ii) Financial guarantees to banks for the export credit, they advanced to exporters.

(iii) Special policies to cover special risk.

 

6. THE INDIAN INSTITUTE OF PACKAGING (IIP)

 

Two main objectives of good package are : (i) to ensure safe transit of goods, and (ii) eye-appeal. Unfortunately, Indian packaging does not meet the international standards nor does it provide safety to goods packed as desired. Considering these deficiencies, the Government of India in collaboration with the industry set up the Institute of Packagi (IIP) in 1966 with its head office at Mumbai.

 

Objectives

1. To stimulate consciousness among the exporters of the need good packaging so as to provide the safety in the transit of goods.

 

2. To undertake rescarch on raw materials to be used for i packaging industry

 

3. To have full information about the new development in the fiel of packaging and to keep India in step with international developments

 

4. To organise training programme for the personnel of packaging on packing technology. 5. To organise consultancy services for the industry.

 

 

7. INDIAN COUNCIL OF ARBITRATION (ICA)

In order to solve the dispute between importer and export amicably the Government of India set up the Indian Council Arbitration in 1965 as the apex arbitration body which is a non-pro organisation.

 

Objectives of the Council

 

(i) To promote and encourage amicable settlement of foreign trade disputes with a view to generating goodwill between the buyer and the seller.

(ii) To arrange arbitration of disputes in international trade through its constituent members;

(iii) To prepare and maintain a panel of arbitrators;

(iv) To propagate and popularize the idea of commercial arbitration in relation to foreign trade;

(v) To collaborate with international organisations and arbitral bodies in matters concerning international commercial arbitration.

 

Functions

1. Training. The Arbitration Council conducts training programm on commercial arbitration.

 

2. Meetings. It conducts regular meetings of representatives from export councils, public sector undertakings chambers of commerce an trade associations and discuss various problems of settlement of dispute and conduct of arbitration,

3. Information. It brings out a number of informative brochures

 

8. TRADE FAIR AUTHORITY OF INDIA (IFAI)

On March 1, 1977 the Trade Fair Authority of India came int existence under Section 25 of the Companies Act, 1956 by merging the three following organisations :

 

(i) The Directorate of Exhibitions and Commercial Publicity.

(ii) The Indian Council of Trade Fairs and Exhibitions,

 

(iii) The Trade Fair Organisation.

 

Objectives

 

(i) To participate in, organise and promote industrial trade fairs and exhibitions abroad and in India to propagate the Indian manufactures and other products;

(ii) To set up the shops and showrooms in India and abroad;

(iii) To undertake trading activities in commodities connected with or relating to such fairs and exhibitions; and

(iv) To develop India's exports and make efforts to diversify and expand India's exports.

 

The TFAI regularly publishes three journals, namely, Udyog Vyapar Patrika (Hindi monthly), Indian Export Bulletin, (English weekly), and Economic and Commercial News (English weekly). These journals provide informations relating to India's economic, business possibilities of India products abroad, Government's trade policies and facilities offered to Indian exports.

 

Functions

The Authority is the sole agency to co-ordinate all fairs and exhibitions in India and outside from July 1981.

 

9. DEPARTMENT OF COMMERCIAL INTELLIGENCE AND STATISTICS

Situated in Kolkata the Department of Commercial Intelligence and Statistics is responsible for commercial intelligence and collection, compilation and publication of statistics of trades, tariff and shipping.

 

Functions

(i) Collection and supply of commercial information to the government and the trade.

(ii) Publication of Directory of Exporters of Indian products and manufactures.

(iii) Publication of the weekly ‘Indian Trade Journal' and 'Monthly Statistics of Foreign Trade of India' and also the reports of economic conditions in foreign countries compiled by the trade representatives of the government in foreign countries from time to time. (iv) Trade introduction and accepting mediation in trade disputes between Indian and foreign firms with a view to bringing about amicable settlement.

(v) Maintenance of commercial library in Kolkata for public use

 

10. DIRECTORATE GENERAL OF SHIPPING (DGS)

 

With its headquarter at Mumbai, Directorate General of Shipping came into being in September 1949 to deal with all matters relating to merchant shipping.

 

Functions

(i) Solving problems that affect merchant shipping, i.e. navigation, administration of merchant shipping etc.

(ii) Development of Indian shipping,

(iii) Regulation of ocean freight rates in overseas trade.

 

11. FREIGHT INVESTIGATION BUREAU (FIB)

 

The Freight Investigation Bureau was set up in 1959 under the Directorate General of Shipping in order to fix and adjust freight rates and to provide spot assistance. It has five branch offices at Kolkata, Cochin, Kandla, Chennai and Vishakhapatnam.

 

Functions

(i) To consider various representations received from shippers/ shippers’ councils relating to high/anomalous/discriminatory freight rates and to secure necessary adjustments.

(ii) To critically examine the proposals of Conference Lines on periodic increase in freight rates and to provide guidance to Shipper's Council to have a dialogue with the conference on such proposals;

(iii) To provide spot assistance to shippers all over the country in procuring timely and adequate shipping space;

(iv) To collect, maintain and examine freight rates of Conferences/ Shipping Lines and to analyse the impact of changes in freight rates;

(v) To investigate into complaints regarding lack of shipping facilities,

(vi) To serve as liaison organisation between shippers and shipping companies to solve shipping and freight problems through mutual consultation.

 

12. ALL INDIA SHIPPER'S COUNCIL

Shippers in all parts of India have been organised in five regional shippers’ associations viz. Eastern, Western, Southern, Northern and South-Western by the Freight Investigation Bureau. All India Shippers' Council, New Delhi is an apex body on all India basis. The Council had periodic consultation with all parties concerned on matters of common interest such as freight structure, conference practices, conference lines, availability of shipping space, port facilities, port charges etc. for export import cargo. It also deals with air cargo problems.


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