When an exporter deals with the foreign buyers, he should always be prepared in order to provide samples of his products. Promotional measures are always beneficial for a healthy start. It thus depends on him in order to provide his products samples whether they are free of cost or on a minimum charge.
If the product is of high value, then he can fix a charge for the sample which is grounded in his communication with the foreign buyers. Samples with the label ‘SAMPLE NOT FOR SALE’ are thus exported without any limit. It is thus necessary in order to maintain a high-quality sample because then only he can meet his client’s expectation regarding the quality of the product.
One thing which must be assured that there are some set of samples which must be preserved with the exporter. If a legal dispute arises in future regarding specification of the said sample, then he can claim on the quality of the said disputed product with his preserved copy of sample.
The raw materials that are used in samples must be subsequently used in the respective product after receiving orders. Secrecy of the product is also an essential element. The exporter is required to confirm the details of importer before sending the samples. There is thus a risk of copying original product and the exporter must always read about the Government policies for exporting of samples.
Export Promotion Councils (EPC) targets at promoting Indian exports of each group of products. Some of them are:-
- Apparel Export Promotion Council :– an exporter who is dealing in garments must get registration with the council in order to send free samples to his clients.
- Woollen Export Promotion Council:– registration is necessary in order to export woollen garments.
- Electronics and Computer Software Export Promotion Council:– registration is necessary for the purpose of exporting all kinds of computer software products.
- Exporting of samples through courier or airmail is categorized under following limits:–
• Value up to Rs. 10,000/- a simple declaration is to be made by the exporter that his sample does not include foreign exchange and its value is less than Rs. 10,000/-
• Value up to Rs. 25,000/- obtain a value certificate from your bank. An exporter should also submit a commercial invoice authenticating that the sample does not include foreign exchange and its value is less than Rs. 25,000/-
• Value more than Rs. 25000/- obtain a GR/PP waiver from the Reserve Bank of India.