International Trade and Import–Export Management

International trade is the exchange of goods and services across national borders. It enables countries to access resources,
technologies, and markets beyond domestic limitations.

Importance of Import–Export in Agri-Business

 Boosts farmers’ income & GDP.

 Diversifies market risk — reduces dependency on local prices

 Creates rural employment and foreign exchange earnings

Key Organizations in Indian Trade Ecosystem

Organization Full Form Role Website

DGFT Directorate General of Foreign Issues IEC, regulates foreign trade policy, [Link]
Trade monitoring and evaluation, trade data
compilation, promotion of SEZs, capacity
building.

APEDA Agricultural & Processed Food Market development, ensures quality control, [Link]
Products Export Development provides financial assistance and technical
Authority support, training and capacity building.

MPEDA Marine Products Export Supports seafood export & processing [Link]
Development Authority

FIEO Federation of Indian Export Apex body representing Indian exporters [Link]
Organisations

EXIM Bank Export-Import Bank of India Provides export credit & financial support [Link]

ECGC Export Credit Guarantee Provides risk insurance to exporters [Link]

Corporation

ICEGATE Indian Customs EDI Gateway Online portal for customs filing & shipment [Link]
tracking

Basic Process of Exporting Goods (Step-by-Step)

Obtain IEC  Registration with Export Promotion council  Market identification & buyer finalization  Pre-shipment
inspection  Documentation & customs clearance  Shipment & logistics  Payment realization  Claim export
incentives.

Step 1: Obtaining IEC (Import Export Code)

 Issued by DGFT through [Link]

  Mandatory for all exporters/importers.

 Linked to PAN; used for all trade documentation.

Documents Required:

 PAN card

 Address proof

 Bank details (cancelled cheque)

 Digital signature

Processing Time: 1–2 working days (online).

Step 2: Registration with Export Promotion Council

Depending on the product type:

Product Category Governing Body Registration Type

Agri & Processed RCMC (Registration-cum-Membership

APEDA
Foods Certificate)

Spices Spices Board Export Registration

Marine Products MPEDA Exporter License

Coffee, Tea, Rubber Commodity Boards Membership

(RCMC is mandatory for export incentive eligibility under FTP.)

🧩 Step 3: Product Quality and Pre-shipment Inspection

 Conducted by EIC (Export Inspection Council) or APEDA labs.

 Agri exports must comply with SPS (Sanitary & Phytosanitary) standards.

 Testing for pesticide residues, aflatoxins, moisture, etc.

 Certificate of Inspection issued before shipment.

🧩 Step 4: Export Documentation Preparation

📑 A. Commercial Documents

Document Purpose Issued By

Proforma Invoice Quotation to buyer before order Exporter

confirmation

Commercial Invoice Final sales invoice post shipment Exporter

Packing List Details of contents in each package Exporter

 Certificate of Origin Certifies product origin (e.g., India) FIEO / Chamber of Commerce
(CoO)

Quality Certificate Confirms product meets buyer standards APEDA / EIC

Insurance Certificate Covers transit risks Insurance Company

📦 B. Shipping Documents

Document Description Issued By

Shipping Bill / Bill of Primary customs clearance document Customs (via ICEGATE)
Export

Bill of Lading (B/L) Proof of shipment by sea Shipping Line

Airway Bill (AWB) Proof of shipment by air Airline

Mate’s Receipt Receipt issued by ship captain after cargo Shipping Line
loaded

Freight Invoice Indicates freight cost Shipping Company

💰 C. Financial Documents

Document Purpose Issued By

Letter of Credit (LC) Bank guarantee ensuring payment Buyer’s Bank

Bill of Exchange Formal payment demand Exporter

Bank Realization Certificate (BRC) Proof of foreign exchange receipt Exporter’s

Bank

GR Form / SDF Form Regulatory form for RBI compliance Exporter / Bank

🏛 D. Regulatory & Supporting Documents

Document Description Issuing Authority

Phytosanitary Certificate For plant-based exports State Plant Quarantine Dept.

Fumigation Certificate Confirms pest control Authorized agency

treatment

Health Certificate For meat, dairy, processed food APEDA / EIC

Export License (if For restricted goods DGFT

applicable)

🧩 Step 5: Customs Clearance Process

Handled through ICEGATE (Indian Customs EDI Gateway).

Steps:

1. File Shipping Bill via ICEGATE or CHA (Customs House Agent).

2. Submit commercial documents.

3. Customs assessment — valuation, duty check, inspection.

4. “Let Export Order” (LEO) issued after inspection.

5. Cargo loaded on ship/aircraft.

6. Export General Manifest (EGM) filed by carrier.

Documents Needed for Customs:

 Invoice & Packing List

 Shipping Bill

 Export Contract / LC

 Insurance Certificate

 GR Form / SDF Form

🧩 Step 6: Shipment & Logistics

Modes of Transport: Sea, Air, Road, Rail.

Sea Freight: Used for bulk items (e.g., rice, sugar, pulses).
Air Freight: For perishables (e.g., fruits, flowers, dairy).
Multimodal Transport: Combination of road + sea/air.

Key Ports for Agri-Exports:

Region Port Major Exports

West Mundra, Nhava Sheva Rice, processed foods

South Kochi, Chennai Spices, marine

products

East Kolkata, Visakhapatnam Tea, marine items

North ICD Tughlakabad, Ludhiana Packaged goods

🧩 Step 7: Payment Realization

Common Methods:

Mode Description Risk

Advance Payment Buyer pays before shipment Low

Letter of Credit (LC) Bank guarantees payment on document compliance Very Low

Documents against Payment (D/P) Buyer pays before receiving documents Moderate
 Documents against Acceptance Buyer pays after credit period High
(D/A)

Key Export Banking Institutions:

 EXIM Bank: Provides pre-shipment & post-shipment credit.

 Commercial Banks: Handle forex transactions & BRC issuance.

 ECGC: Offers risk insurance for credit defaults.

🧩 Step 8: Post-Shipment Incentives

Scheme Benefit Authority

RoDTEP Refunds embedded taxes DGFT

RoSCTL Rebate on textile exports DGFT

TMA Freight assistance for agri exports APEDA

Export Promotion Capital Goods Duty-free import of machinery DGFT

(EPCG)

Advance Authorization Duty exemption on inputs for exports DGFT

Import Procedures (Step by step)

Step 1: Obtain Importer Exporter Code (IEC)

 Mandatory for importers.

 Issued online via DGFT portal.

 Single IEC valid for all branches of a company.

🧩 Step 2: Determine Whether the Item Is Freely Importable

Products fall under three categories:

Category Description Example

Free No license needed Edible oils, machinery

Restricted Requires import Certain seeds, used machinery

license

Prohibited Not allowed Narcotics, hazardous waste

Refer to the ITC (HS) Classification of Import and Export Items (available on [Link]).

🧩 Step 3: Import Licensing (if applicable)

  For restricted items, apply through DGFT portal.

 Submit justification, technical specifications, and end-use certificate.

 DGFT may consult ministries like Agriculture or Commerce before approval.

🧩 Step 4: Foreign Exchange Control

Imports are regulated by Foreign Exchange Management Act (FEMA, 1999).

 Payments routed through Authorized Dealers (AD Category-I Banks).

 Methods: Advance payment, letter of credit (LC), or documents against payment.

 Importer must file Bill of Entry for customs clearance and remit payment through bank within 6 months of
shipment.

🧩 Step 5: Pre-Shipment Documentation by Supplier

Document Purpose Prepared By

Proforma Invoice Initial quotation Supplier

Commercial Invoice Final sale confirmation Supplier

Packing List Lists goods and package Supplier

details

Certificate of Origin Declares goods’ origin Export Chamber (in supplier country)

Insurance Certificate Coverage for goods Supplier or importer

Bill of Lading / Airway Bill Proof of dispatch Carrier

🧩 Step 6: Customs Clearance Process in India

Step 6.1: Bill of Entry Filing

 Filed electronically via ICEGATE / e-Sanchit portal.

 Filed within 30 days of shipment arrival.

 3 types:

o Home Consumption: For immediate clearance.

o Warehousing: For goods to be stored temporarily.

o Ex-Bond Bill: When goods are released from bonded warehouse.

Step 6.2: Import Duty Assessment

 Customs determines Assessable Value = CIF value (Cost + Insurance + Freight).

 Applicable duties:
 o Basic Customs Duty (BCD)

o Social Welfare Surcharge (SWS)

o IGST (Integrated GST)

o Agricultural Infrastructure and Development Cess (AIDC)

🧩 Step 7: Inspection and Clearance

Type of Import Required Clearance Authority

Food items FSSAI NOC FSSAI

Seeds / Plant Phytosanitary Certificate PQIS

materials

Fertilizers Central Insecticides Board approval DAC&FW

Machinery Technical certification DGFT / BIS

Chemicals Safety clearance MoEF & CC

Inspection Types:

 First Check: Goods examined before duty payment.

 Second Check: Examined after duty payment.

Once verified, Out of Charge (OOC) order is issued and importer can collect goods.

🧩 Step 8: Payment Settlement

Mode Description Risk

Advance Payment Importer pays before shipment High

Letter of Credit (LC) Bank guarantees payment Low

Documents against Payment (D/P) Payment before document release Moderat

e

Documents against Acceptance Deferred payment after acceptance High

(D/A)

Importer’s bank files Exchange Control Copy of Bill of Entry with RBI to record foreign exchange usage.

Step 9: Post-Import Compliance

Requirement Description

Customs Duty Payment Proof Maintain for audit purposes

Bank Realization Certificate (BRC) Confirms payment completion

Import License Utilization Report Submitted to DGFT (for restricted goods)

 Environmental / Health Applicable for agro-chemicals
Compliance

Export Documentation Workflow

1. Pre-shipment Stage

o Obtain IEC and RCMC (from APEDA or relevant council).

o Receive confirmed order and open Letter of Credit.

o Arrange inspection (if needed) and pack goods.

o Prepare Proforma & Commercial Invoice.

o Book cargo with shipping line or freight forwarder.

2. Customs Clearance Stage

o Submit Shipping Bill via ICEGATE portal.

o Upload mandatory documents (Invoice, Packing List, License, etc.).

o Get goods examined by customs (Green / Yellow / Red channel).

o Pay export duty and get Let Export Order (LEO).

3. Post-shipment Stage

o Obtain Bill of Lading / Airway Bill.

o Submit documents to bank for payment realization.

o File claim for duty drawbacks / RoDTEP.

o Maintain records for audit & DGFT reporting.

Export Finance?

Export finance refers to the credit and funding support provided to exporters for producing, shipping, and realizing
payment from international buyers.

Types of Export Finance

Type Stage Description Example

Pre-shipment Before Short-term loan for purchasing An exporter of mango pulp takes ₹50 lakh
Finance (Packing shipment raw materials, packaging, loan for raw material purchase under
Credit) processing, etc. Packing Credit Scheme.

Post-shipment After Credit facility for the period Exporter gets 60-day credit against Bill of
 Finance shipment between shipment and payment Lading & Invoice.
realization.

Supplier’s Credit Post- Credit extended by the exporter Exporter allows 90-day payment period.
shipment to importer for deferred payment.

Buyer’s Credit Post- Finance provided to importer by EXIM Bank supports buyer in Africa to
shipment Indian bank to pay Indian purchase Indian pulses.
exporter.

Advance Payment Pre- Importer pays partial/full Buyer in UAE pays 30% advance for banana
shipment payment before shipment. consignment.

Key Financial Institutions Supporting Exporters (India)

Institution Function Special Relevance for Agribusiness

EXIM Bank of India Provides pre/post-shipment finance, overseas Funds agri-export units (e.g., spice
buyer’s credit, and lines of credit to foreign processing) and provides overseas
governments. buyer’s credit.

ECGC (Export Credit Provides risk insurance for exporters against Insures against non-payment for
Guarantee Corporation) payment default or political risks. perishable exports (e.g., fruits,
vegetables).

Commercial Banks (SBI, Provide working capital and foreign exchange Offer packing credit, bills discounting,
HDFC, etc.) loans. and forex management.

NABARD Finances agri-export infrastructure (Mega Supports exporters indirectly through

Food Parks, Pack Houses). infrastructure funding.

5.4 Export Finance Instruments

Instrument Description Example

Letter of Credit A bank guarantee assuring exporter of payment if Buyer’s bank in UAE issues LC through
(LC) shipment terms are met. HDFC Bank India.

Bill of Exchange A written order directing buyer to pay specified Exporter draws a 90-day bill on
amount. importer.

Bank Guarantee Bank ensures payment or performance by Used for tenders in government export
exporter/importer. contracts.

Export Bank or factoring agency purchases exporter’s Useful for SMEs exporting processed
Factoring receivables at a discount. food to Europe.

Forfaiting Export receivables converted into long-term credit sold Used for large machinery or agro-
to financial institutions. processing projects.

Types of Risks in Export Trade

Risk Type Description Example

 Commercial Risk Buyer fails to pay due to insolvency or default. Importer of coffee goes bankrupt before
payment.

Political Risk Payment blocked due to war, sanctions, or Exporter to Sudan faces non-convertibility
currency freeze. issue.

Exchange Rate Loss due to currency fluctuation. INR appreciates after contract → lowers
Risk exporter profit.

Transit Risk Goods damaged during shipping. Container leak damages mango pulp
shipment.

Quality Risk Rejection due to poor quality. EU importer rejects pesticide-contaminated

grapes.

ECGC Risk Cover Types

Cover Type Description

Standard Policy Covers commercial and political risks up to 90% of invoice

value.

Specific Shipment Policy For large or one-time exports.

Buyer-wise Policy For exporters with regular foreign buyers.

Consignment Export Cover For exports sent on consignment basis.

Exchange Fluctuation Risk Cover For deferred payment contracts.

Export Incentives and Financial Schemes (India 2024–25)

Scheme Objective Authority

RoDTEP (Remission of Duties and Taxes on

Reimburses hidden taxes not refunded under GST. DGFT
Export Products)

RoSCTL (for textiles) Rebates state and central taxes on textile exports. DGFT

Allows import of capital goods at zero duty for

Export Promotion Capital Goods (EPCG) DGFT
export production.

3% interest subvention on pre/post-shipment credit

Interest Equalization Scheme (IES) RBI / DGFT
for MSMEs.

Agriculture Infrastructure Fund NABARD fund for export pack houses, cold storage.

What is Export Marketing?

Export marketing involves the process of identifying, promoting, and selling goods in foreign markets.
It integrates market research, product adaptation, pricing, promotion, and logistics — all customized to foreign
consumers and trade policies.
Steps in Export Marketing Process

Step Description Example

1. Market Research Study demand, competition, tariffs, logistics, India’s grape exporters research demand
consumer preferences. trends in the EU.

2. Product Modify product for foreign markets. Adjust spice blend levels for Middle
Adaptation Eastern taste preferences.

3. Pricing Strategy Fix export price based on cost, competition, and FOB vs CIF pricing for rice exports.
Incoterms.

4. Promotion & Communicate brand value through trade fairs, APEDA “India Organic” campaign in
Branding digital campaigns. Germany.

5. Distribution Choose between direct exports, distributors, or Selling mango pulp via importer in Dubai.
Channels agents.

6. After-Sales Handle claims, returns, and feedback. EIC-certified exporter resolves quality
Service complaint via agent.

Market Entry Strategies for Indian Exporters

Strategy Description Suitable For

Direct Exporting Exporter sells directly to foreign buyer. Experienced exporters with logistics
capacity.

Indirect Exporting Through intermediaries or export houses. New exporters.

Joint Ventures Collaboration with foreign partner. Long-term expansion.

Franchise / Licensing Brand name licensed abroad. Packaged foods & beverages.

E-commerce Selling via platforms like Amazon Global,

Exporting Alibaba.

Digital Marketing for Exporters

Tool Function Exporter Example

Google Ads / SEO Reach global buyers searching for agri “Buy Indian Rice Supplier” ad campaign.
products.

LinkedIn Marketing B2B connections and professional Exporter connects with UAE distributors.
visibility.

B2B Portals (Alibaba, Lead generation for new buyers. MSME exporters of jaggery powder.
 TradeIndia)

Social Media Branding Showcase certifications, production “Farm to Fork” storytelling by organic food
videos. exporters.

Email Marketing Send offers, catalogues, and product

updates.

Types of Import Licenses

Type Description Example

Open General License Freely importable items under ITC (HS) Schedule Packaging materials, grains.
(OGL) I.

Restricted License Requires DGFT permission. Fertilizers, edible oils.

Canalized Items Imported only through government agencies. Petroleum, urea (via STC,
MMTC).

Prohibited Items Not allowed to import. Wild animal products, narcotics.

Import Duty Structure (2024–25)

Duty Type Description Typical Rate (Agri

Imports)

Basic Customs Duty (BCD) Standard import duty. 10–30%

IGST (Integrated GST) Tax on import of goods. 5–18%

Social Welfare Surcharge On BCD amount. 10% of BCD

Agriculture Infrastructure & Development Cess Funds agri infra projects. 5% on selected products
(AIDC)

Safeguard / Anti-Dumping Duty Protects domestic Case-specific

industry.

Foreign Trade Policy (FTP 2023–2028) and Export Promotion Incentives

The Foreign Trade Policy (FTP) is issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of
Commerce & Industry to guide India’s import–export activities.

Key Objectives

1. Boost exports of goods and services.

2. Encourage local manufacturing under Atmanirbhar Bharat.

3. Integrate MSMEs and agri-businesses into global value chains.

 4. Promote digital trade facilitation and reduce compliance burden.

FTP 2023–28 Highlights:

 Announced: 31 March 2023, effective from 1 April 2023 (no end date — dynamic policy).

 Focuses on “From Incentives to Remission” — shifting from subsidies to tax/duty neutrality.

 Encourages district-level exports and e-commerce trade.

 Introduces digital, paperless approvals through the DGFT platform.

Key Features of FTP 2023–2028

Focus Area Description Benefit

Paperless Trade 100% online DGFT portal for licenses, authorizations, Reduces time and cost.
and scrips.

Districts as Export Hubs 700+ districts identified for product specialization. Boosts rural exports.
(DEH)

E-Commerce Exports E-commerce units can export up to ₹10 lakh per Enables MSME
consignment. participation.

Amnesty Scheme (2023) One-time relief for defaulting exporters under old Compliance clean-up.
schemes.

Merchanting Trade India acts as an intermediary without goods entering the Expands forex income.
country.

Major Export Promotion Schemes

1. Advance Authorization Scheme (AAS)
Allows duty-free import of inputs used in export products.

Feature Details

Eligibilit Exporters (manufacturer or merchant).

y

Benefit Exemption from Basic Customs Duty, IGST, AIDC.

Example Importing packaging films to export processed mango pulp.

2. EPCG Scheme (Export Promotion Capital Goods)

Promotes technology upgradation by allowing zero-duty import of capital goods.

Feature Details
 Export Obligation 6x of duty saved in 6 years.

Eligible Goods Food processing machines, dryers, sorters, chillers, etc.

Example Dairy firm imports pasteurization equipment under EPCG.

3. RoDTEP (Remission of Duties or Taxes on Exported Products)

Purpose - Reimburses embedded taxes/duties not refunded under GST.
Implementation - Automated credit on ICEGATE, transferable on DGFT portal.
Example - 0.5–4.3% refund for agri & processed food exports.
Replaces - MEIS (Merchandise Exports from India Scheme).

4. RoSCTL (Rebate of State and Central Taxes and Levies)

For textiles and apparel exports.
Coverage - Garments, Made-ups, Technical Textiles
Refund - On embedded levies (power, water, coal cess).
Mode - Electronic scrips on DGFT portal.

5. SEZ and EOUs (Export Oriented Units)

Scheme Description

SEZ Units Operate in notified Special Economic Zones with tax & duty benefits.

EOU Units Operate outside SEZ but 100% export-oriented; get duty-free imports.

Example Food processing SEZs in Kandla, Krishnapatnam, and Surat.

6. Duty Drawback Scheme

Refunds customs/excise duties on inputs used in export products.

Type Description

All Industry Rate (AIR) Fixed % for product category.

Brand Rate Specific rate based on actual input cost.

Group Incoterm What it means Transport Seller's Key Job (Risk transfers after this)

Seller's Factory: Seller just makes goods available at their

E EXW Ex Works Any Mode
factory. (Min. Seller Responsibility)
Group Incoterm What it means Transport Seller's Key Job (Risk transfers after this)

Handover to Carrier: Seller gets it to the buyer's chosen

F FCA Free Carrier Any Mode
carrier/forwarder, export cleared.

Free Alongside Alongside Ship: Seller places goods on the dock next to the
FAS Sea Only
Ship ship.

FOB Free On Board Sea Only On Board Ship: Seller gets the goods loaded on the ship.

Carriage Paid Handover to Carrier: Seller pays for the main freight, but
C CPT Any Mode
To risk transfers when they give it to their carrier.

Carriage & Handover to Carrier: Same as CPT, but seller also pays
CIP Any Mode
Insurance for high-level insurance.

On Board Ship: Seller pays for the main freight, but risk
CFR Cost and Freight Sea Only
transfers once goods are on the ship.

Cost, Insurance, On Board Ship: Same as CFR, but seller also pays for
CIF Sea Only
Freight minimum insurance.

Delivered at At Destination: Seller is responsible all the way to the

D DAP Any Mode
Place buyer's address, ready to be unloaded.

Delivered at At Destination (Unloaded): Seller is responsible for

DPU Any Mode
Place Unloaded unloading the goods at the destination.

At Destination (Duty Paid): Seller does everything,

Delivered Duty
DDP Any Mode including paying the buyer's import customs/duties. (Max.
Paid
Seller Responsibility)