Chapter 7- Agri Export Procedure
Summary
Export is a very wide concept and lot of preparations is required by an exporter / farmer / agency before
starting an export business. It is presumed that some essential prerequisites are already in place.
Establishment of company / firm is one of the critical processes to complete. Thereafter, obtaining PAN,
opening bank account, applying for IEC etc, Registration cum membership certificate (RCMC) are also
some of the pre-requisites that need to be in place.
Further, it is required to identify and select market, the buyers in international market, product
selection, sampling , pricing and costing with negotiation with buyers is also very important.
On receiving an export order, it should be examined carefully in respect of items, specification, payment
conditions, packaging, delivery schedule, etc. and then the order should be confirmed. After
confirmation of the export order, immediate steps may be taken for procurement of the goods which
are proposed / marked / identified for export. In today’s competitive era, it is important to be strict
quality conscious about the export of goods. The export goods should be labelled, packaged and packed
strictly as per the buyer’s specific instructions. Good packaging delivers and presents the goods in top
condition and in attractive way. In addition, Exporter should procure Marine insurance policy covering
risks of loss or damage to the goods while goods are in transit. ECGC policy is also suggested to obtain
depending up on country of destination of Goods
The customs formalities are little bit complex one, so much in advance it should be completed so that
goods will be delivered to the buyer as per schedule.
Preparation of documents and submission of documents to bank for financing is also crucial task, so be
prepare for that and submit the documents on time and within the timeline stipulated. Exporters are
eligible to obtain pre-shipment and post-shipment finance from Commercial Banks at concessional
interest rates to complete the export transaction. Packing Credit advance in pre-shipment stage is
granted to new exporters against lodgment of L/C or confirmed order for 180 days to meet working
capital requirements for purchase of raw material/finished goods, labour expenses, packing,
transporting , etc.
Thank You
