Meaning of Exports And Imports | What Is Exports And Imports
If you want to know what is the meaning of exports and imports and how it’s work.
You are on the right page!
With the help of this article, you can easily understand what are exports and imports and why it’s important for our economy.
Hello, friends welcome to another fresh article on “Indiancustoms.info”, Here in this article I explained the meaning of exports and imports.
What Are Exports and imports? 90% of people think it is a simple question and they already know its answer.
But after reading this article you will understand that your knowledge about export and import is incomplete and you will realize why import and export are important for each country.
I am also sure you will share this article with your friends.
This article completely changes your mentality about export and export and you will understand how does export-import works.
Now let’s take look what is the meaning of exports and imports.
Meaning of Exports And Imports.
Almost all of us know the meaning of exports in general terms ‘any goods moved out of the country is called exports’ and ‘any goods inward in the country is called import‘.
Some of you who studied academically about exports may say, ‘If any goods cross the border of a country is called exports’.
But we can’t consider it completely correct. We can also export or import services.
I know now you are confused but don’t worry, let me explain it in detail.
If any goods or services or software are sold out of the country it’s considered an export and when any goods or services or software buy from another country it’s considered an import.
Let’s understand export and import separately.
What Is Export?
As you all know what are the things considered as export, now it’s time to understand when it considers as export by Governments.
I know it sounds confusing, but don’t worry let me explain it briefly.
To understand this term in detail we consider Indian customs rules and regulations as an example.
In India, “as per section 2(18) of the Customs Act defines “export” as meaning, with its grammatical variations and cognate expressions, taking out of India to a place outside India”.
Let me explain it with an example:-
An exporter from New Delhi, India got an order of an FCL of Leather jacket from Califonia, USA.
The exporter accepts the order and after completion of customs clearance formalities hand over goods to Tuglakabad port and obtain a let export order.
The cargo is loaded onto a train and moved to Mumbai port, from Mumbai port cargo is loaded on Ship ‘On board’ the Vessel, and the Vessel carrying the said cargo sails from the land of Mumbai port.
It means cargo to cross the land border of India.
What do you think can we consider it as an Export? The answer is NO!
Because cargo crosses the landed border of India only but is still in India. To consider it as an export, it needs to move out of India.
According to section 2(27) of the Indian Customs Act, the territorial water area of India is considered as India.
Territorial water is up to 12 nautical miles (1 nautical mile = 1.852 kilometers) into the sea from the coast of India.
Once when the vessel carrying the said cargo cross 12 nautical miles into the sea from the coast of Mumbai port, we can call the said shipment “exported”.
I’m sure you will never know about these facts before reading this article, So please share this article with others to reach this knowledge to others.
What Is Import?
If you inward any goods or services or software into your country from another country it’s known as Import.
We can also say that ‘Bringing into India from a place inside the territorial waters of India which is 12 nautical miles into the sea from the coast of India’ is also known as Import.
How Do Export And Import Support The Economy?
I think most people do not aware of international trade, They don’t understand international trade is the most important income source for every country.
When any country exports goods to another country they receive foreign currency.
If any country receives foreign currency consistently, its economy will grow better and its currency will become more strong.
Export is one of the best sources to get inward foreign currency for any country.
I hope now you understand why export is important for every country and some exporters import raw materials and associates for manufacturing final products.
I hope you now understand what is the meaning of exports and imports and why it’s important for our economy. If anyone has any suggestions or queries please comment in the comment box.