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Leather
IMPORT & EXPORT
Submitted to
Sohel Kazi
BMS Degree
Names Roll NoArkar Matin 04Joshua D’souza 08Faria Idrisi 15Aakash Khadye 20Jim Sebastian 31
Nargis Merchant 34Bhagesh Nanaposhe 37Zeeshan sayyed 47Riyaz Sheikh 50Afsha Syed 59
Class:SYBMS Semester: 3 Div: A
Studying at:
Rizvi Education Society’s
Rizvi College of Arts Science &Commerce
Bandra (west), Mumbai-400050.
Academic Year: 2011-2012
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Declaration
I and my all group member student of SYBMS, Semester -4, Div A, academic years 2011-12
studying at Rizvi college of arts science, & commerce, hereby declare that the work done on
the project entitled leather product is true & original & any reference used in the project isduly acknowledged.
Date :
{Signature}
ACKNOWLEDGEMENT
This work is a synergistic product of many minds. We would like to thank few individuals
who help us immensely in completing this project successfully. They helped not only
providing information but also by boosting my confidence and giving us moral support.
The manufacture of different leather product owner who were our respondents, help in
conducting personal interview for their kind cooperation and patience.
My project guide, Mr.Sohel Kazi for being ever ready to give us the necessary guidance to go
about the project.
And last but not the least, our family and friends without whose invaluable support this would
not have been possible.
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ContentsIntroduction to leather and leather industry……………………………………………………………….4
Licenses:……………………………………………………………………………………… …........... 8
Availability of resources (raw material)………………………………………………………………………………………………………..9
Analysis and Research & Development of leather industry……………………………………………….15
Demand for leather in regional and internationalmarket…………………………………………………..17
Promotion:…………………………………………………………………………………………………………………………………
……………………20
Export procedures and Documentation:……………………………………………………………………. 21
Existing Companies in themarket............................................................................................................22
Growth…………………………………………………………………………………………………………………………………………………………….23
Insurance…………………………………………………………………………………………………………………………………………………………24
Swotanalysis………………………………………………………………………………………………………………………
…………………………..26
Swot analysis
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Introduction to leather and leather industry
A. Leather:
Leather is a durable and flexible material created via the tanning of putrescible animal rawhide
and skin, primarily cattle hide.
B. Leather Industry
The leather industry occupies a place of prominence in the Indian economy in view of its massive
potential for employment, growth and exports. There has been an increasing emphasis on its
planned development, aimed at optimum utilization of available raw materials for maximizing the
returns, particularly from exports. The exports of leather and leather products gained momentum
during the past two decades. There has been a phenomenal growth in exports from Rs.320 million
in the year 1965-66 to Rs.69558 million in 1996-97. Indian leather industry today has attained
well merited recognition in international markets besides occupying a prominent place among the
top seven foreign exchange earners of the country.The leather industry has undergone a dramatic transformation from a mere exporter of raw materials in
the sixties to that of value added finished products in the nineties. Policy initiatives taken by the
Government of India since 1973 have been instrumental to such a transformation. In the wake of
globalization of Indian economy supported with liberalized economic and trade policies since
1991, the industry is poised for further growth to achieve greater share in the global trade.
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Apart from a significant foreign exchange earner, leather industry has tremendous potential for
employment generation. Direct and indirect employment of the industry is around 2 million. The
skilled and semi-skilled workers constitute nearly 50% of the total work force.
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BUSINESS PLAN:
In practical, we have to follow following steps to start a business in India or anywhere. These steps are as
follows.
Chose a business name and business startup strategy.
Incorporate business and get license to start
Make suitable business plan
Financial arrangements
-Marketing and advertisement of business and products
Research and development and growth of business.
We will be starting business in partnership and above mention members will be our partner. The work
will be divided as per their specialized skill and interest in business. We will setup business as traders of
product. In order to know the market demand and growth, our first step will be R & D and market
research.
After our research completed, then we will decide the nature of product. And the research made by our
partners clearly shows that leather industry is one of the growing industries in India. This is the main
reason for choosing this business. This will help us in practical life too.
A. Description:The leather and leather products industry is one of India’s oldest manufacturing industries that
catered to the international market right from the middle of the nineteenth century. India is the
largest livestock holding country (21% large animals and 11% small animals). It is a source for
over 10% of the global leather requirement. Availability of raw material will help us in growth of
industry and also in manufacturing leather product. Our research shows that leather & leather
product exports forecasted and expected to increase due to various favorable policies and
subsidies from our government to promote leather & leather products in other countries.
After this we will register our business with sales tax and get VAT TIN and CST TIN Nos. Which help us
to trade in Maharashtra or in our country. After we succeed in this stage, we will apply for import
and export license.
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B. COMPETITORS FINANCE:i. RED TAPE
jacketsdenims men’s footwear the brand has now diversified into Women’s footwear
i. BATABagsBeltsJacketsShoes
We are targeting some brands like woodland, red tape etc. initially we sell our product at regional level
then after few years we will go for export procedure. We decided to export leather in Europe
countries as they are in great need of leather as these countries are considered as cold. We also
found that financial assistance to the exporters are generally provided by Commercial Banks,
before shipment as well as after shipment of the said goods. The assistance provided before
shipment of goods is known as per-shipment finance and that provided after the shipment of
goods is known as post-shipment finance. Pre-shipment finance is given for working capital for
purchase of raw-material, processing, packing, transportation, ware-housing etc. of the goods
meant for export. Post-shipment finance is provided for bridging the gap between the shipment of
goods and realization of export proceeds. The later is done by the Banks by purchasing or
negotiating the export documents or by extending advance against export bills accepted on
collection basis. While doing so, the Banks adjust the pre-shipment advance, if any, already
granted to the exporter.
A. AVAILABILITY OF RAW MATERIAL :
There exists a large raw material base. This is on account of population of 194 million cattle, 70 million
buffaloes, and 95 million goats. According to the latest census, India ranks first among the major
livestock holding countries in the world. In respect of sheep with 48 million sheep’s, it claims the
sixth position. These four species provide the basic raw material for the leather industry.
The annual availability of 166 million pieces of hides and skins is the main strength of the
industry. This is expected to go up to 218 million pieces by the end of year 2000. Some of the
goat/calf/sheep skins available in India are regarded as specialty products commanding a good7
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market. Abundance of traditional skills in training, finishing and manufacturing downstream
products and relatively low wage rates are the two other factors of comparative advantage for
India. Easy availability of raw material and human force lead to growth in business and help us to
trade internationally.
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Licenses:An export license is a document issued by the appropriate licensing agency after which an exporter is
allowed to transport his product in a foreign market. The license is only issued after a careful review of
the facts surrounding the given export transaction. Export license depends on the nature of goods to be
transported as well as the destination port. So, being an exporter it is necessary to determine whether the
product or good to be exported requires an export license or not.
To determine whether a license is needed to export a particular commercial product or service, an
exporter must first classify the item by identifying what is called ITC (HS) Classifications. Export license
are only issued for the goods mentioned in the Schedule 2 of ITC (HS) Classifications of Export and
Import items. A proper application can be submitted to the Director General of Foreign Trade (DGFT).
The Export Licensing Committee under the Chairmanship of Export Commissioner considers such
applications on merits for issue of export licenses.
After getting license from government we will move towards registration with dock or custom to store
our goods or product before shipment procedure.
A. Customs Formalities:
Central Board of Excise and Customs (CBEC) is assigned a number of tasks, some of which are:
• Collection of customs duties on imports and exports as per basic customs laws (Customs Act
1962 and customs tariff Act 1975)• Enforcement of the various provisions of the Customs Act governing imports and exports of
cargo, baggage, postal articles and arrival & departure of vessels, air craft’s etc.• Discharge of various agency functions and enforcing various prohibitions and restrictions on
imports and exports under the Customs Act and other allied enactments;• Prevention of smuggling including introduction of narcotics drug trafficking; and International
passenger processing.
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Availability of resources (raw material)
Leather is a durable and flexible material created via the tanning of putrescible animal rawhide and skin,
primarily cattle hide. It can be produced through different manufacturing processes, ranging from cottage
industry to heavy industry.
The leather and the fur industries are differentiated by the manufacturing importance of the raw materials used to
make the wares. In the leather industry, the skin and rawhide are by-products of the meat industry, because the
meat has greater commercial value than the rawhide and skin. In the fur industry, the meat is a by-product, because
the skins and hides have greater commercial value. Moreover, in taxidermy, the raw materials usually are only the
animal’s head and back; hide and skin also are the raw materials for manufacturing, animal, glue and gelatin.
A. Forms Of leather
Several tanning processes transform hides and skins into leather:
1. Vegetable-tanned leather is tanned using tannin and other ingredients found in vegetable
matter, tree bark, and other such sources. It is supple and brown in color, with the exact shade
depending on the mix of chemicals and the color of the skin. It is the only form of leather
suitable for use in leather carving or stamping.
2. Chrome-tanned leather, invented in 1858, is tanned using chromium sulfate and other salts of chromium. It is more supple and pliable than vegetable-tanned leather, and does not discolor
or lose shape as drastically in water as vegetable-tanned. It is also known as wet-blue for its
color derived from the chromium. More esoteric colors are possible using chrome tanning.
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3. Aldehyde-tanned leather is tanned using glutaraldehyde or oxazolidine compounds. This is the
leather that most tanners refer to as wet-white leather due to its pale cream or white color. It is
the main type of "chrome-free" leather, often seen in shoes for infants, and automobiles.
4. Synthetic-tanned leather is tanned using aromatic polymers such as the Novolac or Neradol
types. This leather is white in color and was invented when vegetable tannins were in short
supply during the Second World War.
5. Alum-tawed leather is transformed using aluminium salts mixed with a variety of binders and
protein sources, such as flour and egg yolk.
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6. Rawhide is made by scraping the skin thin, soaking it in lime, and then stretching it while it
dries. Like alum-tawing, rawhide is not technically "leather", but is usually lumped in with the
other forms. Rawhide is stiffer and more brittle than other forms of leather, and is primarily
found in uses such as drum heads where it does not need to flex significantly; it is also cut up
into cords for use in lacing or stitching, or for making many varieties of dog chews.
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A. Types of leather
In general, leather is sold in four forms:
1. Full-grain leather refers to the upper section of a hide that previously contained theepidermis and hair, but were removed from the hide/skin. Full-grain refers to hides that have
not been sanded, buffed, or snuffed (as opposed to top-grain or corrected leather) in order to
remove imperfections (or natural marks) on the surface of the hide. The grain remains in its
natural state allowing the best fiber strength and durability. The natural grain also has natural
breathability, resulting in less moisture from prolonged contact. Rather than wearing out, it
will develop a natural patina over time, with some cracking and splitting. The finest leather
furniture and footwear are made from full-grain leather. For these reasons, only the best raw
hide is used to create full-grain leather. One way to test if leather is full-grain is to lightly
scratch its surface with your nail. If it leaves a lighter-colored streak, it's full-grain. Full-
grain leathers are typically available in two finish types: aniline and semi-aniline.
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2. Top-grain leather is a misnomer: it gives the false impression that it is "top" quality. In fact,
full-grain is the highest quality. Top-grain leather is the second-highest quality. Its surface
has been sanded and refinished. As a result, it has a colder, plastic feel, less breathability,
and will not develop a natural patina. However, it does have 2 advantages over full-grain
leather: it is typically less expensive, and has greater resistance to stains.
3. Corrected-grain leather is any leather that has had an artificial grain applied to its surface.
The hides used to create corrected leather are of inferior quality that does not meet the high
standards for use in creating vegetable-tanned or aniline leather. The imperfections are
corrected and an artificial grain applied. Most corrected-grain leather is used to make
pigmented leather as the solid pigment helps hide the corrections or imperfections. Corrected
grain leathers can mainly be bought as two finish types: semi-aniline and pigmented.
4. Split leather is leather created from the fibrous part of the hide left once the top-grain of therawhide has been separated from the hide. During the splitting operation, the grain and drop
split are separated. The drop split can be further split (thickness allowing) into a middle split
and a flesh split. In very thick hides, the middle split can be separated into multiple layers
until the thickness prevents further splitting. Split leather then has an artificial layer applied
to the surface of the split and is embossed with a leather grain (Bycast leather). Splits are
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also used to create suede. The strongest suede’s are usually made from grain splits (that have
the grain completely removed) or from the flesh split that has been shaved to the correct
thickness. Suede is "fuzzy" on both sides. Manufacturers use a variety of techniques to make
suede from full-grain. For example, in one operation, leather finish is applied to one side of
the suede, which is then pressed through rollers; these flatten and even out one side of the
material, giving it the smooth appearance of full-grain. Latigo is one of the trade names for
this product. Reversed suede is grained leather that has been designed into the leather article
with the grain facing away from the visible surface. It is not a true form of suede. The
International Union of Leather Technologists and Chemist Societies have a glossary of
leather terms that can be found at IULTCS.
A. Manufacturing Process:
The leather manufacturing process is divided into three fundamental sub-processes: preparatory
stages, tanning, and crusting. All true leathers will undergo these sub-processes. A further sub-
process, surface coating can be added into the leather process sequence, but not all leathers
receive surface treatment. Since many types of leather exist, it is difficult to create a list of
operations that all leathers must undergo. The preparatory stages are when the hide/skin is
prepared for tanning. Preparatory stages may include: preservation, soaking, fleshing, reliming.
Tanning stage is the process which converts the protein of the raw hide or skin into a stable
material which will not putrefy and is suitable for a wide variety of end applications. Crusting is
the process by which the hide/skin is thinned, retanned, and lubricated. Often a coloring operation
is included in the crusting sub process. The chemicals added during crusting must be fixed in
place. For some leathers, a surface coating is applied.
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Analysis and Research & Development of leather industry
A. Analysis
The global trade in leather and leather products has been increasing over the years from mere US$
4 billion in 1972 to US$ 70 billion in 1997. Although the exports of Indian leather and leather
products have grown manifold during the past decades, our country's share in global trade is
around 3% among world imports of leather products. Whereas India's share in world imports of
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leather footwear is 1%. Major exporting countries of leather footwear are China (14% share),
Portugal (6% share), Brazil (5% share) and Indonesia (4% share).
India's share in world imports of leather garments is 6%. Major exporting countries of leather
garments are China (36% share), Germany (9% share), Italy (7% share), Turkey (5% share) and
Pakistan (4% share) India's share in world imports of leather goods is 7%. Major exporting
countries are China (22% share), Italy (22 % share), France (7% share) and Greece (5% share),India's share in world imports of harness and saddlery is 8%. Major exporting countries of harness
& saddlery are Germany (14 % share), U.K. (14 % share), China (12% share).
Overall, India is facing fierce competition in international market from countries like China,
Vietnam, Thailand, Indonesia, etc., which are emerging as major manufacturing countries.
East European countries like Poland, Romania, Czech and Slovak Republics have re-emerged as
major production centers particularly for footwear sector. These countries pose major challenge to
Indian exporters as they enjoy geographical advantage.
B. Research and Development
Leather in modern culture
Due to its excellent resistance to abrasion and wind, leather found a use in rugged occupations.
The enduring image of a cowboy in leather chaps gave way to the leather-jacketed and leather-
helmeted aviator. When motorcycles were invented, some riders took to wearing heavy leather
jackets to protect from road rash and wind blast; some also wear chaps or full leather pants to
protect the lower body. Many sports still use leather to help in playing the game or protecting players; its flexibility allows it to be formed and flexed.
The term leathering is sometimes used in the sense of a physical punishment (such as a severe
spanking) applied with a leather whip, martinet, etc. Leather fetishism is the name popularly used
to describe a fetishistic attraction to people wearing leather, or in certain cases, to the garments
themselves. Many rock groups (particularly heavy metal and punk groups in the 1980s) are well-
known for wearing leather clothing. Leather clothing, particularly jackets, almost come as
standard in the heavy metal and Punk subculture. Extreme metal bands (especially black metal
bands) and Goth rock groups have extensive leather clothing, i.e. leather pants, accessories, etc.
Many cars and trucks come with optional or standard 'leather' seating. This can range from cheap
vinyl imitation leather, found on some low cost vehicles, to real -Nappa leather, found on luxury
car brands like Mercedes-Benz, BMW, and Audi. Leather biodegrades slowly, and takes 25–40
years to decompose.
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In religiously diverse countries, leather vendors are typically careful to clarify the kinds of leather
used in their products. For example, leather shoes will bear a label identifying the animal from
which the leather was taken. In this way, a Muslim would not accidentally purchase pigskin
leather, and a Hindu could avoid cow leather.
Such taboos increase the demand for religiously neutral leathers like ostrich and deer .Judaism
forbids the comfort of wearing shoes made with leather on Yom Kippur, Tisha B'Av, and duringmourning.
Demand for leather in regional and international market
A. Leather industry International demand
The country’s tanneries and leather and leather goods makers are putting on war paint to battle for
more orders in the international markets
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The latest data published on the website of Export Promotion Bureau (EPB) shows that the
country’s leather export earnings rose 29.94 per cent to US $149.46 million, in the last seven
months of the fiscal 2010-11, as against $115.02 million in the corresponding period of the
previous year. The EPB’s data revealed that leather goods exports, during the period between July
2010 and January 2011, were to the tune of $149.46 million, which is 8.46 per cent lower than the
target of $163.28 million.
An analysis of the EPB data showed that the country’s leather product export earnings were forging
ahead due to growing international demand for Bangladeshi leather products, mainly for quality
and cheaper prices. But in terms of export earnings leather products lag far behind finished
leather.
According to the statistical data of EPB, the country earned $31.40 million through exports of
leather products during the July 2010-January 2011 period; the earning was 62.11 per more than
the targeted figure of $19.37 million.
During the last seven months of the current fiscal, exporters of leather products registered 145.70
per cent earnings growth over that in the corresponding period of the previous year.
B. Leather industry regional demand
Recently, the Indian leather industry experienced a boom. It stood to gain a bigger share of the
global market, with leading brands from US and Europe either importing or planning to source
leather and leather products from India . If one is to believe reports by the Department of Industrial
Policy and Promotion of various industries, the leather industry has been developing rapidly. India
has around 3% share in the global trade of leather in comparison to China’s 20%. In order to
promote the rapid advancement of this industry, the Government of India has been constantly
making efforts to show improvements. Leather industry is the 10th largest sector in the Indian
manufacturing sector, providing employment to 2.5 million people and weaker
sections/minorities, of which about 30 % are women. Also, due to its considerable export revenue,
prospects and expansion, this sector holds a prominent place in the Indian Economy. It is also the
largest manufacturing sector and its products are considered amongst the top ten export earners of the country.
Leather garments and other leather goods in India are among the major production and thus have a
lot of demand even overseas. India has colossal natural resources of raw hides & skins due to
which the export of leather products has undergone a structural transformation resulting in
increased exports of various leather products .
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Promotion:
We will go for web designing and billboards. Our marketing strategy will be getting orders more as we
can and the will concentrate on dispatch the orders on time. We will try to maximize our productivity by
giving our best in selected business.
In India there is a council for leather export and products. The Council for Leather Exports (popularly
known as CLE) set up in July 1984, is an autonomous non-profit company registered under the Indian
Companies Act, 1956 entrusted with export promotion activities and development of the Indian leather
industry. CLE's activities are multiple and directed towards assisting its members in extending their
global reach thereby increasing their exports. We will try to register with above institution as soon as we
can.
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Export procedures and Documentation:
Setting up an export business requires basic documentation such as a Permanent Account Number (PANcard), Importer Exporter Code (IEC) from DGFT office and opening a bank account. Other key factors
include knowledge of trading systems, FTP and Industrial Policy, access to market information (for
which internet is a good source), ensuring product quality and compliance with export procedures &
documentation. The Ministry of Commerce, through the Director General of Foreign Trade (DGFT),
controls the Foreign Trade Policy (FTP), while the Ministry of Finance, through the Reserve Bank of
India (RBI) and the Indian Customs, controls the physical movement of goods and services and the
transactions of foreign exchange (both inflow & outflow) from the country. Receipts of proceeds of
exports by way of foreign exchange and payment for imports to foreign suppliers by way of foreignexchange are to be routed through normal banking channels only.
A. Documentation:
The entire documentation in export trade can be basically divided into two categories:
• Export Documents• Pre-shipment Documents• Post-shipment Documents
The standard pre-shipment documents include:
• Customs Invoice• Packing List• G R Form (original and duplicate)• ARE-1 Form (original and duplicate)• Copy Of Export order • Letter Of Credit
The standard pre-shipment documents include:
• Custom attested invoice• Custom attested packing list
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Existing Companies in the market
1. Tata International Ltd.
2. Florind Shoes Ltd.
3. Punihani International
4. Farida Shoes Ltd.
5. Mirza Tanners Ltd.
6. T. Abdul Wahid & Company
7. Hindustan Lever Ltd.8. Super House Leather Ltd.
9. RSL Industries Ltd.
10. Presidency Kid Leather Ltd.
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Growth
Whilst IT spends growth is expected to hardly change in September 2011 compared with August for all
manufacturers, the top growing manufacturing sectors will see advancement. The highest spend increases
are projected for Petrochemicals followed by Leather Products manufacture.
A. Cow and Buffalo Leather
We are the manufacturers and exporters of Cow and Buffalo leather used in various leather
products. With our wide experience and efficient manufacturing, we have achieved remarkablegrowth in both domestic and global markets. Cow Leather Indian origin cow skin is one of the top
grades of raw materials available around the world. Our cow leather is available in various
finishes and colors. Finished Cow Leather Our finished cow leather is available in soft, nappa,
natural milled, wrink .
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Insurance
Export credit insurance protects you from the consequences of the payment risks, both political and
commercial. It enables you to expand your overseas business without fear of loss. Further, it creates a
favorable climate for you under which you can hope to get timely and liberal credit facilities from the
banks at home.
You can obtain Export Credit Insurance from the Export Credit and Guarantee Corporation of India
Limited. In order to provide you Export Credit Insurance, the following covers are issued by the ECGC:
Standard policies to protect you against the risk of not p 7 3 receiving payment while trading with
overseas buyers on short-term credit.
Specific policies designed to protect you against the risk of not receiving payment in respect of:
• exports on deferred payment terms
• services rendered to foreign parties
• construction work, including turnkey projects undertaken abroad
The policies are either:
Whole Turnover Policies in the form of 'Open Cover' in respect of shipments made during 24 months
period. You have to obtain credit limit on each one of your buyers to enable ECGC to approve a limit on
the basis of credit worthiness of the buyer. These policies are basically similar to whole turnover policies
but only apply to specific contracts.
Specific Policies for exports of capital goods on medium or long-term credit, turnkey projects, civil
construction works and technical services. These policies are basically similar to whole turnover policies
but only apply to specific contracts.
Financial guarantees issued to banks against risk involved in providing credit or guarantee facilities to
you, and Special schemes viz. transfer guarantee issued to protect banks which add confirmation to letters
of credit, Insurance cover for Buyers' Credit, Lines of Credit, Joint Ventures and Overseas Investment
Insurance, and Exchange Fluctuation Risk Insurance. The other guarantees which banks can offer to you
through ECGC schemes are :--- Bid Bonds,--- Advance Payments Guarantee,--- Bank guarantee for due25
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performance of the contract by the exporter,---Bank guarantee for payment of retention money,--- Bank
guarantee for loans in foreign currencies. Details of these schemes can be obtained from your own banker
or local office of the Export Credit and Guarantee Corporation of India Ltd.
The Shipments (Comprehensive Risks) Policy is the one ideally suited to cover risks in respect of goods
exported on short-term credit. Shipments to associates or to agents and those against letter of credit can
be covered for only political risks by suitable endorsements to the shipments (comprehensive risks)Policy. Premium is charged on such shipments at lower rates.
For obtaining a policy you should apply to the nearest office of the ECGC in the prescribed Form no.121
(obtainable from ECGC) along with the following documents:
• Bank Certificate about the financial position
• Application form for fixing the credit limit
• Name/address of foreign buyer fixing sub-limits
After examining the proposal, ECGC would send the exporter an offer letter stating the terms of its cover
and premium rates. The policy will be issued after the exporter conveys his consent to the premium rate
and pays a non-refundable policy fee of Rs. 100 for policies with maximum liability limit p 7 3 up to Rs.
5 lakhs; Rs. 200 between Rs. 5 lakhs and Rs. 20 lakhs and Rs. 100 for each additional Rs. 10 lakhs or part
thereof subject to a ceiling of Rs. 2500.As commercial risks are not covered in the absence of a credit
limit, you are advised to apply to ECGC for approval of credit limit on buyer in the prescribed Form
No:144 (obtainable from ECGC) before making shipment. Credit limit is the limit up to which claim can
be paid under the policy for losses on account of commercial risks. If no application for credit limit on a
buyer has been made, ECGC accepts liability for commercial risks up to a maximum of Rs. 5, 00,000 for
D.P. /C.A.D. transactions and Rs. 2, 00,000 for D.A. transactions provided that at least three shipments
have been effected to the buyer during the preceding two years on similar terms, at least one of them was
not less than the discretionary limit availed of by the exporter and the buyer had made payment on the
due dates
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