Orchid Export

Presented By:

Shahzada M Afwan 062 636 030

Shamima Akhter 051 535 030

Orchid

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 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 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 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 Competitors

Micro Orchid plant

* Situated in Savar.
* Exports more than two thousand kg per year.
Osculate International
 Small 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 Arabia
Capital City: Riyadh
Currency: Saudi riyal
Languages: Arabic
Religions: Muslim 100%
Location: Middle East
Area: 2.15 million sq km
People: 28.69 million
Economy of Saudi Arabia
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 Arabia
Exports: $189.70 billion US$
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 International
Primary intention to become an exporter,
it will not specialize on cultivation and
harvest.
Research and Understanding
 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 Costs
 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 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 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 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:

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 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:
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 procedures
Examination of goods before export.
Let Export Order by Customs Authorities.
Transport to leave on written order.
Preparation for Foreign Shipment
Engineering Considerations
Production Considerations
Packing Techniques
Transportation
Selling Process
 Exporting 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 Initiatives
 Duty free import of capital machinery
 Fiscal Incentives
 Limit for export credit
 Income Tax rebate
 Fast customs clearance
 Reduced rate of AIT
Recommendation
 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 You