7/16/24, 9:49 AM How to Export 7/16/24, 9:49 AM How to Export

Subscribe now Subscribe now

required by an exporter before
A- starting an export business. To
A start export business, the
A+
Home About Trade Agreements Top 25 Countries Foreign Buyers Resources What's New Contact Us Help
following steps may be followed:
Lan

For Exporter

Frequently Asked Questions

1) Establishing an
Search ITC-HS Code & Tariff Organisation
Upcoming Events

HOW TO EXPORT
To start the export business, first
Latest News

Important Links

INTRODUCTION Export a sole Proprietary concern/

Benefits Partnership firm/Company has
India’s Foreign Trade i.e. Exports to be set up as per procedure
and Imports are regulated by with an attractive name and
Foreign Trade Policy notified by logo.
Central government in exercise of
powers conferred by section 5 of 2) Opening a Bank Account
foreign trade (Development and
A current account with a Bank
Regulation) Act 1992. Presently
authorized to deal in Foreign
Foreign Trade Policy 2015-20 is
Exchange should be opened.
effective from 1st April, 2015. As
per FTD & R act, export is defined 3) Obtaining Permanent
as an act of taking out of India any Account Number (PAN)
goods by land, sea or air and with
It is necessary for every exporter
proper transaction of money. The
and importer to obtain a PAN
FTP 2015-20 has been extended
from the Income Tax
till 30th September, 2021.
Department. (To apply PAN
STARTING EXPORTS Card Click here)

Export in itself is a very wide 4) Obtaining Importer-

concept and lot of preparations is Exporter Code (IEC) Number
[Link] S b ib 1/17 [Link] S b ib 2/17
7/16/24, 9:49 AM How to Export 7/16/24, 9:49 AM How to Export

Subscribe now Subscribe now

As per the Foreign Trade FIEO/Commodity Boards/
Policy, it is mandatory to Authorities.
obtain IEC for export/import
from India. Para 2.05 of the 6) Selection of product
FTP, 2015-20 lays down the
All items are freely exportable
procedure to be followed for
except few items appearing in
obtaining an IEC, which is PAN
prohibited/ restricted list.
based.
After studying the trends of
An application for IEC is filed export of different products
online at [Link] as from India proper selection of
per ANF 2A, online payment of the product(s) to be exported
application fee of Rs. 500/- may be made.
through net Banking or
credit/debit card is made 7) Selection of Markets
along with requisite
documents as mentioned in An overseas market should be
the application form. (For selected after research covering
more information Click here) market size, competition, quality
requirements, payment terms
5) Registration cum etc. Exporters can also evaluate
membership certificate (RCMC) the markets based on the export
benefits available for few
For availing authorization to
countries under the FTP. Export
import/ export or any other
promotion agencies, Indian
benefit or concession under FTP Missions abroad, colleagues,
2015-20, as also to avail the
friends, and relatives might be
services/ guidance, exporters
helpful in gathering information.
are required to obtain RCMC
granted by the concerned 8) Finding Buyers
Export Promotion Councils/

[Link] S b ib 3/17 [Link] S b ib 4/17

7/16/24, 9:49 AM How to Export 7/16/24, 9:49 AM How to Export

Subscribe now Subscribe now

Participation in trade fairs, buyer expenses from sampling to
seller meets, exhibitions, B2B realization of export proceeds
portals, web browsing are an on the basis of terms of sale i.e.
effective tool to find buyers. Free on Board (FOB), Cost,
EPC’s, Indian Missions abroad, Insurance & Freight (CIF), Cost
overseas chambers of & Freight(C&F), etc. Goal of
commerce can also be helpful. establishing export costing
Creating multilingual Website should be to sell maximum
with product catalogue, price, quantity at competitive price
payment terms and other with maximum profit margin.
related information would also Preparing an export costing
help. sheet for every export product is
advisable.
9) Sampling
11) Negotiation with Buyers
Providing customized samples
as per the demands of Foreign After determining the buyer’s
buyers help in getting export interest in the product, future
orders. As per FTP 2015-2020, prospects and continuity in
exports of bonafide trade and business, demand for giving
technical samples of freely reasonable allowance/discount
exportable items shall be in price may be considered.
allowed without any limit.
12) Covering Risks through
10) Pricing/Costing ECGC

Product pricing is crucial in International trade involves

getting buyers’ attention and payment risks due to buyer/
promoting sales in view of Country insolvency. These risks
international competition. The can be covered by an
price should be worked out appropriate Policy from Export
taking into consideration all Credit Guarantee Corporation
[Link] S b ib 5/17 [Link] S b ib 6/17
7/16/24, 9:49 AM How to Export 7/16/24, 9:49 AM How to Export

Subscribe now Subscribe now

Ltd (ECGC). Where the buyer is order has been obtained with
placing order without making much efforts and competition so
advance payment or opening the procurement should also be
letter of Credit, it is advisable to strictly as per buyer’s
procure credit limit on the requirement.
foreign buyer from ECGC to
protect against risk of non- iii. Quality Control
payment.(To know more about
In today’s competitive era, it is
ECGC Click here)
important to be strict quality
Processing an Export Order conscious about the export
goods. Some products like food
i. Confirmation of order and agriculture, fishery, certain
chemicals, etc. are subject to
On receiving an export order, it compulsory pre-shipment
should be examined carefully in inspection. Foreign buyers may
respect of items, specification, also lay down their own
payment conditions, packaging, standards/specifications and
delivery schedule, etc. and then insist upon inspection by their
the order should be confirmed. own nominated agencies.
Accordingly, the exporter may Maintaining high quality is
enter into a formal contract with necessary to sustain in export
the overseas buyer. business.
ii. Procurement of Goods iv. Finance
After confirmation of the export Exporters are eligible to obtain
order, immediate steps may be pre-shipment and post-
taken for shipment finance from
procurement/manufacture of Commercial Banks at
the goods meant for export. It concessional interest rates to
should be remembered that the complete the export transaction.
[Link] S b ib 7/17 [Link] S b ib 8/17
7/16/24, 9:49 AM How to Export 7/16/24, 9:49 AM How to Export

Subscribe now Subscribe now

Packing Credit advance in pre- overdue Banks will charge
shipment stage is granted to commercial lending rate of
new exporters against lodgment interest.
of L/C or confirmed order for
180 days to meet working v. Labeling, Packaging,
Packing and Marking
capital requirements for
purchase of raw The export goods should be
material/finished goods, labour labeled, packaged and packed
expenses, packing, transporting, strictly as per the buyer’s
etc. Normally Banks give 75% specific instructions. Good
to 90% advances of the value of packaging delivers and presents
the order keeping the balance the goods in top condition and
as margin. Banks adjust the in attractive way. Similarly, good
packing credit advance from the packing helps easy handling,
proceeds of export bills maximum loading, reducing
negotiated, purchased or shipping costs and to ensuring
discounted. safety and standard of the
cargo. Marking such as address,
Post Shipment finance is given
package number, port and place
to exporters normally upto 90%
of destination, weight, handling
of the Invoice value for normal
instructions, etc. provides
transit period and in cases of
identification and information of
usance export bills upto
cargo packed.
notional due date. The
maximum period for post- vi. Insurance
shipment advances is 180 days
from the date of shipment. Marine insurance policy covers
Advances granted by Banks are risks of loss or damage to the
adjusted by realization of the goods during the while the
sale proceeds of the export bills. goods are in transit. Generally in
In case export bill becomes CIF contract the exporters
[Link] S b ib 9/17 [Link] S b ib 10/17
7/16/24, 9:49 AM How to Export 7/16/24, 9:49 AM How to Export

Subscribe now Subscribe now

arrange the insurance whereas exporter need to apply different
for C&F and FOB contract the forms of shipping bill/ bill of
buyers obtain insurance policy. export for export of duty free
goods, export of dutiable goods
vii. Delivery and export under drawback etc.
It is important feature of export Under EDI System, declarations
and the exporter must adhere in prescribed format are to be
the delivery schedule. Planning filed through the Service
should be there to let nothing Centers of Customs. A checklist
stand in the way of fast and is generated for verification of
efficient delivery. data by the exporter/CHA. After
viii. Customs Procedures verification, the data is
submitted to the System by the
It is necessary to obtain PAN Service Center operator and the
based Business Identification System generates a Shipping Bill
Number (BIN) from the Customs Number, which is endorsed on
prior to filing of shipping bill for the printed checklist and
clearance of export good and returned to the exporter/CHA. In
open a current account in the most of the cases, a Shipping
designated bank for crediting of Bill is processed by the system
any drawback amount and the on the basis of declarations
same has to be registered on made by the exporters without
the system. any human intervention. Where
the Appraiser Dock (export)
In case of Non-EDI, the shipping orders for samples to be drawn
bills or bills of export are and tested, the Customs Officer
required to be filled in the may proceed to draw two
format as prescribed in the samples from the consignment
Shipping Bill and Bill of Export and enter the particulars thereof
(Form) regulations, 1991. An
[Link] S b ib 11/17 [Link] S b ib 12/17
7/16/24, 9:49 AM How to Export 7/16/24, 9:49 AM How to Export

Subscribe now Subscribe now

along with details of the testing In both the cases, after the
agency in the ICES/E system. permission for amendments has
been granted, the Assistant
Any correction/amendments in Commissioner / Deputy
the check list generated after Commissioner (Export) may
filing of declaration can be approve the amendments on
made at the service center, if the the system on behalf of the
documents have not yet been Additional /Joint Commissioner.
submitted in the system and the Where the print out of the
shipping bill number has not Shipping Bill has already been
been generated. In situations, generated, the exporter may
where corrections are required first surrender all copies of the
to be made after the generation shipping bill to the Dock
of the shipping bill number or Appraiser for cancellation before
after the goods have been amendment is approved on the
brought into the Export Dock, system.
amendments is carried out in
the following manners. ix. Customs House Agents

1. The goods have not yet been Exporters may avail services of
allowed "let export" Customs House Agents licensed
amendments may be by the Commissioner of
permitted by the Assistant Customs. They are professionals
Commissioner (Exports). and facilitate work connected
with clearance of cargo from
2. Where the "Let Export" order Customs.
has already been given,
amendments may be x. Documentation
permitted only by the
Additional/Joint FTP 2015-2020 describe the
Commissioner, Custom House, following mandatory documents
in charge of export section. for import and export.
[Link] S b ib 13/17 [Link] S b ib 14/17
7/16/24, 9:49 AM How to Export 7/16/24, 9:49 AM How to Export

Subscribe now Subscribe now

· Bill of Lading/ Airway bill - Invoice

· Commercial invoice cum - Packing List

packing list
- Airway Bill/Bill of Lading
· shipping bill/ bill of export/
bill of entry (for imports) - Declaration under Foreign
(Other documents like certificate Exchange
of origin, inspection certificate
etc may be required as per the - Certificate of Origin/GSP
case.)
- Inspection Certificate,
xi. Submission of documents wherever necessary
to Bank
- Any other document as
After shipment, it is obligatory
required in the L/C or by the
to present the documents to the
Bank within 21 days for onward buyer or statutorily.
dispatch to the foreign Bank for
xii. Realization of Export
arranging payment. Documents
Proceeds
should be drawn under
Collection/Purchase/Negotiation As per FTP 2015-2020, all export
under L/C as the case may be, contracts and invoices shall be
along with the following denominated either in freely
documents convertible currency of Indian
rupees, but export proceeds
- Bill of Exchange
should be realized in freely
convertible currency except for
- Letter of Credit (if shipment is
export to Iran.
under L/C)

[Link] S b ib 15/17 [Link] S b ib 16/17

7/16/24, 9:49 AM How to Export

Subscribe now
Export proceeds should be
realized in 9 months.

Copyright © 2014 - Indian Trade Portal

Disclaimer 0025992698

[Link] 17/17