Orchid ExportOrchid ExportPresented By:

Shahzada M Afwan 062 636 030

Shamima Akhter 051 535 030

OrchidOrchid

The orchid is a flower of magnificence that brings a universal message of love, beauty, wisdom, thoughtfulness, luxury & strength. It is originated from Greece.

Industry AnalysisIndustry Analysis Bangladeshi orchid has the most potential market in

foreign country. Bangladesh is a tiny stakeholder in this international

business in flowers. There is a good domestic market in the country. Orchids found in all over the country. The flowers are marketed at Dhaka and other cities

where there is a sustainable and growing demand for them.

The main business of orchid is in Dhaka city's Shahbagh intersection. All types of orchids are bought here from different parts of Dhaka and its adjoining areas both for retail and wholesale.

Trade StatisticsTrade Statistics

The amounts of Orchids have increased in terms of weight with the amount of money. In the period 2001-2002 the total amount of Orchids exported abroad was 679 kg and it has increased to 1107 kg in the period of 2003-2004 and the export of orchids has been increasing day by day.

Foreign CompetitorsForeign Competitors

Country Name Exported amount in different year (measure in kg)

Holland 6 thousand (2002), 7.5 thousand(2004)

Belgium 4.5 thousand ( 2003) 5 thousand (2005)

Germany 3 thousand (1999)

Local CompetitorsLocal Competitors

Micro Orchid plant* Situated in Savar.* Exports more than two thousand kg

per year.

Osculate InternationalOsculate InternationalSmall orchid exporting company. Intends to create both local and global

demand for orchid products. It will not only plant various type of Orchids

however it will formulate and provide guidelines and monitor the orchid operation activities regularly to ensure the proper ways of cultivation and rapid growth.

Brief History of Saudi Brief History of Saudi ArabiaArabia

Capital City: RiyadhCurrency: Saudi riyalLanguages: Arabic

Religions: Muslim 100%Location: Middle East

Area: 2.15 million sq kmPeople: 28.69 million

Economy of Saudi Economy of Saudi ArabiaArabia

GDP: 592.30 billion US$GDP(growth rate): 0.10%

GDP(per capita): $23,991.00 Inflation Rate: 5.10%

Budget:Revenues: 134.70 billion US$

Expenditures: 146.70 billion US$

Exports and Imports of Saudi Exports and Imports of Saudi ArabiaArabiaExports: $189.70 billion US$

Exports – partners: US 17.1%, Japan 15.2%, South Korea 10.1%, China 9.3%, India 7%, Singapore 4.4%

Imports: $82.29 billion US$

Imports – partners: US 12.2%, China 10.5%, Japan 7.7%, Germany 7.4%, South Korea 5.1%, Italy 4.8%, India 4.2%, UK 4.1%

Business Process of Osculate Business Process of Osculate InternationalInternationalPrimary intention to become an

exporter, it will not specialize on cultivation and harvest.

Research and Research and UnderstandingUnderstanding At its very start, Company will make researches and

assess the viability of finding Orchid cultivation around the country, practicality for cultivation and simultaneously make efforts to find importers.

Information regarding export may be found by consulting Freight Forwarders and Clearing Agents, Embassies and Consulates of the respective countries of where to export, Chambers of Commerce, National Trade Associations etc.

A similar effort must be made to search for farms which would provide the company for the exporting items. Osculate International has not any firm for cultivating little plant. They will collect it from their nearby Orchid nursery firm.

Challenges in terms of Challenges in terms of CostsCosts Cost to Produce

Cultivating Orchids can be done by taking little care because way of doing cultivation. As a result of all that, it can be expected that the supply of Orchids would not be much affected and thus a constant low cost might be possible.

Cost of moving Orchids

Company Osculate International will provide all the costs till the overseas Air port point

Export ProceduresExport Procedures No stoppage of export shipment Procedures by person in charge of transport

Any new airline, shipping line, and steamer agent should be registered in Customs Systems for electronic processing of shipping bills etc.

Loading with permission

Export goods can be loaded only after Shipping Bill or Bill of Export, duly passed by Customs Officer is handed over by Exporter to the person-in-charge of transport.

Export Report

An Export Report in prescribed form should be submitted before departure. The steps are:

1. Obtain BIN

2. Open account with designated bank for credit of duty drawback claims

3. Register licenses / advance license / DEPB etc.

Shipping Bill to be submitted by Shipping Bill to be submitted by Exporter:Exporter:Shipping Bill and Bill of Export Regulations prescribe

form of shipping bills. There are five forms: Shipping Bill for export of goods under claim for duty

drawback. Shipping Bill for export of dutiable goods. Shipping bill for export of duty free goods. Shipping bill for export of duty free goods ex-bond. Shipping Bill for export under DEPB scheme.

Elimination of formalities at the time Elimination of formalities at the time of Export:of Export:

If the goods are cleared by manufacturer for export, the goods are accompanied by ARE-1. This form should be submitted to customs authorities.

Duty drawback formalities:Duty drawback formalities:

If the exporter intends to claim duty drawback on his exports, he has to follow prescribed procedures and submit necessary papers. He has to make endorsement of shipping bill that claim for duty drawback is being made.

Other documents required for Other documents required for export:export:Exporter also has to prepare other documents like- Four copies of Commercial Invoice Four copies of Packing List Certificate of Origin or pre-shipment inspection where

required Insurance policy Letter of Credit Declaration of Value Excise ARE-1/ARE-2 form as applicable GR / SDF form prescribed by RBI in duplicate Letter showing BIN Number.

Check in customs: Check in customs: Document submitted is processed by customs authorities, and following are checked ◦ Value and classification of goods under drawback

schedule in case of drawback shipping bills.◦ Export duty if applicable.◦ Advance License shipping bills are checked to

ensure that description in invoice and final product specified in Advance License matches.

◦ Exportability of goods under export policy and other laws

Other proceduresOther proceduresExamination of goods before export.Let Export Order by Customs

Authorities.Transport to leave on written order.

Preparation for Foreign Preparation for Foreign ShipmentShipmentEngineering ConsiderationsProduction ConsiderationsPacking TechniquesTransportation

Selling ProcessSelling ProcessExporting country

◦ Saudi Arabia is the primary target for exportation of fresh Orchids.

International Trading Companies◦ Since the targeted country’s internal business distribution

is largely regulated by the International trading companies it will be a good approach to link to the importers through these companies.

Import Agents◦ Import agents may be asked for their assistance in order

to find out potential importers.

Government InitiativesGovernment InitiativesDuty free import of capital machineryFiscal IncentivesLimit for export credit Income Tax rebateFast customs clearance Reduced rate of AIT

RecommendationRecommendation The company should ensure that, they always serve

the quality orchid flowers to their foreign buyers as well as to the local market.

Distribution channel should be effective in a proper way.

For orchid booming company need a different branch in different fertile places where should have proper infrastructure.

For orchid green house could be the better way to optimize the temperature.

Protect orchid from insects by using pesticide in a proper limit.

Hygienic factor should be maintained.

Thank YouThank You