Instamojo’s free payment links

Dinesh Anantharaj

Collecting online payments made so easy . Instamojo’s payment links help you collect payments from anyone, anytime, anyhwere with just a single click. And all this for absolutely free!

Go ahead and create your first payment link Here : https://bit.ly/2MfD5AS

 

Instamojo Technologies offers a hassle-free, affordable payment gateway across India that enables MSMEs to generate payment links, share the same with their customers via WhatsApp, SMS, e-mail or Facebook, and collect payments. For every successful transaction, the seller is charged 3Rs + 2 % of the transaction value and free for NEFT / RTGS / Bank Transfer.

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Different Types Of Shipping Modes

Dinesh Anantharaj

You might be ready with your eCommerce store and would have taken care of most aspects of your business. But, are you confused about what mode of shipping to choose to get your product delivered to the customer? If yes, you have come to the right place. Here we will discuss all the various modes of transporting cargo and other goods through land, sea or air.

All three modes of shipping take the cargo and deliver it to its destination. A business owner may choose any of the transport methods to deliver his product depending on various factors such as time consumed, types of goods to be shipped, budget, etc.

Let us discuss the different modes of shipping-

Shipping Through Air

In this mode of transport, aircraft are used to transport goods. Air transport is undoubtedly the fastest mode of transport. It is extremely useful, as it is the most convenient form of shipping, and does not have to compete with many natural barriers. This advantage ultimately makes it the most accessible to all regions regardless of any land obstruction. Airfreight service can deliver most items, except anything extremely heavyweight that may not fit inside the aircraft. This form of transport is also regarded as the best shipping mode for perishable goods. Shipping through the air is usually the most expensive compared to the other modes of transport.

Shipping Through Land

Land shipping is one of the oldest forms of transporting goods. This is the most useful when it comes to delivering goods within a country or across borders which are not very far. Trucks are typically used to transport goods via roads, as they have huge spaces to ship bulkier items such as construction material and even vehicles. This mode of shipping is comparatively cheaper than the others. However, it might take longer for the goods to reach the final destination. Another form of land transport is railways. There are two main options when it comes to shipping goods by rail.

  • If your business is located close to a railway station, you can directly load your goods onto the train and have it delivered to its destination. 
  • Intermodal Service:  This type of shipping service involves two different forms of freight, such as trucks and trains. The freight is first loaded into trailers, then trucked to the railway station where the freight is loaded onto the train. At the final destination, trailers are loaded back onto another truck and delivered.

Rail shipping has several advantages. It’s cost-effective and can carry larger goods across the country.

Shipping Through Sea

Shipping is done through the sea for various purposes such as military, recreational or commercial. It is the method used to transport comparatively larger quantities of products via cargo ships where goods are packed in containers and the containers are further loaded into a vessel. Almost everything can be shipped through the sea, however, it is not recommended to ship cargo through the sea when you want your product to be delivered fast.

Things To Keep In Mind When Choosing A Shipping Mode

There are many aspects you should keep in mind when selecting the most suitable form of freight to get your products delivered to the final destination. Choosing the right mode of transportation for your business can help you in reducing your shipping and logistics costs. Now that we know about the various modes of shipping, let us take a look at what are the factors you should consider while choosing your shipping mode-

Freight Cost

Budget should always be one of the most important factors to consider while shipping your goods, as prices can vary based on the type and amount of goods that need to be transported. In case you are transporting heavier items to a farther destination within the country, then shipping through rail will be the most economical. Sea transport is likely to be the cheapest mode of transport suitable for heavier items with no time constraint to reach the destination. Perishable items are best transported through air, although it is expensive. Importers and exporters, however, should always keep in mind that the “hidden costs” such as insurance charges will be added to their overall transportation cost.

Type Of Goods 

The type of items you are transporting to your buyer plays a very important role in which mode of transport you should opt for. While road and air transport cater mainly to the transportation of smaller items, rail and sea transport cater to heavier goods. The shipping mode for your business will also depend on how fragile, high-value or dangerous your product is. Land and air modes of transport are considered to be the best option when it comes to high-value and fragile products. 

Speed

The speed of freight service is another major factor you should consider while choosing the means of transport. The decision you make here can directly impact your end customer. Faster the freight service, sooner the product reaches your customer. Air transport is considered to be the fastest mode of transport, while water transport is the slowest. Nowadays, consumers choose who to buy from based on their overall customer experience. Having the lowest price or best product no longer guarantees you a sale. You need to provide them with a faster delivery service to ensure customer satisfaction, which will ultimately boost the growth of your business.

Safety

You sure want your products to be safe during the transit. But to ensure safety, you will need to choose the freight service carefully. Shipping via sea is the riskiest, as water transport is often exposed to the perils of the sea. Shipping through roads can be considered to be safer than railways, as the losses incurred will be less with road transport. The safest form of shipping mode is considered to be air transport. 

Conclusion

All three modes of shipping-land, air, and sea-play a major role in our economy. Each offers benefits that the other mode of transport might not offer. It is up to you to make a well-informed decision of choosing the right mode of shipping that will be beneficial for your business.

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IEC Code (Import Export Code)

Dinesh Anantharaj

 

What is IEC code?

IEC code stands for Import Export Code. It is a ten digit license code required by companies or individuals to begin an import-export business in India. It is also necessary for availing benefits under schemes like MEIS and SEIS.

The DGFT (Director General of Foreign Trade), Department of Commerce, Government of India provides applicants with this code after a thorough analysis of their application.

 

How To Apply For IEC code?

There are specific regulations laid down by the government of India that need to be followed and furnishing the correct documents is one of them. Here is a brief run through of documents required along with the IEC application.

First, download the IEC application form online from the DGFT website. The application form should be ANF 2A. You can also fill out the form online now.

You will require the following list of documents alongside the form:

  • Current Bank Account Details
  • Self-attested copy of the PAN (permanent account number ) card
  • Banker’s Certificate
  • Two copies of the passport size photograph of the applicant that is duly attested by the banker of the applicant
  • Covering letter on the letterhead of the applicant’s company to request for the issue of new IEC certification

These documents will help to justify your identity as an individual or a private limited company to get the IEC code without much hassle.

Next, submit the form and above-listed documents with an application fee of Rs. 250 /-.

When applying online, upload the scanned copies of all documents and make an electronic(online) payment for the application fee to DGFT.

Whereas, in the offline application, submit a demand draft of Rs. 250/-, payable to the Regional Office of DGFT. Following which, send the certificate and receipt of the demand draft along with copies of documents in person to the nearest DGFT office.

Also, attach a self-addressed envelope along with Rs.25/- postal stamp for delivery of the IEC certificate through registered post or challan/DD of Rs.100/- for speed post. The physical application should reach the DGFT office within 15 days of the online submission of the form.

 

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Export Incentive Schemes & Benefits in India

Dinesh Anantharaj

India’s economy is one of the fastest growing economies in the world. As a part of economic reforms, the government has formulated many economic policies which have led to the country’s gradual economic development. Under the changes, there has been an initiative to improve the condition of exports to other countries. With this regard, the government has taken up a few actions to benefit businesses in the export trade. The primary objective of these benefits is to simplify the whole export process and make it more flexible. On a broader scale, these reforms have been a blend of both social democratic and liberalization policies.

Since the initiation of the liberalization plan in the 1990s, the economic reforms have emphasized the open market economic policies. Foreign investments have come in various sectors, and there has been good growth in the standard of living, per capita income and Gross Domestic Product. Moreover, there has been a greater emphasis on flexible business and doing away with excessive red-tapism and government regulations.

Some of the different types of export incentive schemes and benefits that the government has initiated are:

Advance Authorization Scheme

As part of this scheme, businesses are allowed to import input in the country without having to pay duty payment, if this input is for the production of an export item. Moreover, the licensing authority has fixed the value of the additional export products to not below than 15%. The scheme has the validity period of 12 months for imports and 18 months for carrying out the Export Obligation (EO) from the date of issue typically.

Advance Authorization for Annual Requirement

Exporters who have a previous export performance for at least two financial years can avail the Advance Authorization for Annual requirement scheme or more benefits.

Export Duty Drawback for Customs, Central Excise, and Service Tax

Under these schemes, the duty or tax paid for inputs against the exported products is refunded to the exporters. This refund is carried out in the form of Duty Drawback. In case the duty drawback scheme is not mentioned in the export schedule, exporters can approach the tax authorities for getting a brand rate under the duty drawback scheme.

Service Tax Rebate

In the case of specified output services for export goods, the government provides rebates on service tax to exporters.

Duty-Free Import Authorization

This is another benefit the government has introduced by combining the DEEC (Advance License) and DFRC to help exporters get free imports on certain products.

Zero duty EPCG (Export Promotion Capital Goods) Scheme

In this scheme, which applies to exporters of electronic products, import of capital goods for production, pre-production, and post-production is allowed at zero percent customs duty if the export value is at least six times the duty saved on capital goods imported. The exporter needs to verify this value(Export Obligation) within six years of issuing date.

Post Export EPCG Duty Credit Scrip Scheme

Under this export scheme, exporters who aren’t sure about paying the export obligation can obtain an EPCG license and pay the duties to the customs officials. Once they fulfill the export obligation, they can claim a refund of the taxes paid.

Towns of Export Excellence (TEE)

Towns that produce and export goods above a particular value in the identified sectors would be known as towns of export status. Towns will be given this status based on their performance and potential in exports to help them reach new markets.

Market Access Initiative (MAI) Scheme

An effort to provide financial guidance to eligible agencies for undertaking direct and indirect marketing activities like market research, capacity building, branding, and compliances in importing markets.

Marketing Development Assistance (MDA) Scheme

This scheme aims to promote export activities abroad, assist export promotion councils to develop their products and other initiatives to carry out marketing activities abroad.

Merchandise Exports from India Scheme (MEIS)

This scheme applies to the export of certain goods to specific markets. Rewards for exports under MEIS will be payable as a percentage of realized FOB value.

Thanks to all these schemes, exports have increased by a right margin, and there is a favorable atmosphere among the business community. The government is also upcoming with many other benefits to strengthen the export sector of the country further.

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