A Step-by-Step Guide to Exporting Goods from India

If you've ever considered venturing into the exciting realm of international trade by exporting goods from India, you're in for a rewarding yet complex journey. In this comprehensive guide, we'll take you through the intricate process step by step, helping you establish a robust foundation and execute successful exports.

1. Preparing for Export

1.1 Establish an Organisation

Before embarking on your export journey, lay a strong foundation by registering your company with the regional Micro, Small, and Medium Enterprises (MSME). This not only provides stability but also opens doors to various benefits and subsidies.

1.2 Open a Bank Account

In the world of international trade, money matters. Secure a current account for foreign exchange transactions, a vital component for seamless export operations.

1.3 Obtain Permanent Account Number (PAN)

Your 10-character alphanumeric PAN is more than a tax identifier; it's a mandatory element for all financial transactions and serves as crucial identity proof.

1.4 Secure Import-Export Code (IEC) Number

Consider the IEC as your golden ticket to international trade. This 10-digit code is indispensable for anyone looking to export or import goods.

1.5 Get Registration cum Membership Certificate (RCMC)

Think of the RCMC as your VIP pass to export incentives. Issued by authorities, this certificate is essential for availing benefits under the Foreign Trade Policy.

1.6 Choose Your Product and Market

Decide what to sell and where by meticulously researching potential markets and products aligned with your business model.

1.7 Set Pricing of the Product

Pricing is strategic; consider factors like breakeven points, freight costs, and competition, especially from countries like China.

1.8 Negotiating with Buyers

Building trust is crucial. Whether online or through traditional methods, sending samples can go a long way in establishing solid buyer relationships.

1.9 Covering Risks through ECGC

Entrepreneurship comes with risks. ECGC provides export credit insurance, acting as a safety net against buyer insolvency or political upheavals.

2. Executing the Export

2.1 Confirmation of Order

Receiving that initial order is the first milestone. Whether from an importer or Indent House, this is where your groundwork pays off.

2.2 Procurement of Goods

After confirming the order, source goods, considering third-party inspection agencies based on product nature.

2.3 Financing

Securing funds is key. Explore export financing options, from credits to government grants, to make your export venture financially viable.

2.4 Labelling, Packaging, and Marking

Beyond logistics, adhere to regulatory necessities. Obtain inspection certificates to prove compliance with required norms.

2.5 Insurance Coverage

International trade demands insurance. Explore cargo and credit insurance options to safeguard different aspects of the export process.

2.6 Delivery

International shipping options vary; familiarize yourself with the Bill of Lading, a legal document crucial for shipping goods.

2.7 Customs Procedures

Clearing customs involves numerous documents, including the Shipping Bill or the Bill of Export.

2.8 Customs House Agents

Ease the process with Customs House Agents, and professionals handling paperwork to ensure smooth customs clearance.

2.9 Documentation and Submission of Documents to the Bank

Accurate document completion is crucial. Submit all required documents to your bank for the Documentary Bill of Exchange.

2.10 Realizing the Export Proceeds

Get paid after shipping by completing banking formalities, considering currency exchange rates and applicable fees.

Conclusion

Embarking on the export-import journey is complex, but the rewards are limitless. Simplify the process with platforms like Overseas Logistics, offering integrated logistics for a hassle-free experience. Sign up today and eliminate the complexities of the export business.

FAQs

What is the cost of IEC registration?

The total cost is ₹1499, including a government fee of ₹500 and a professional fee of ₹999 for the registration process.

Can we export without RCMC?

No, you can't export without a Registration cum Membership Certificate as per para 4.10 of the Export-Import policy.

Is GST registration mandatory for IEC?

No, GST registration is not mandatory for obtaining an Import-Export Code (IEC) in India.

What is the procedure to obtain RCMC?

 Follow these steps on the FIEO Registration portal, including signing up, completing the form, choosing the FIEO office, attaching required documents, adding GST details, paying the fee, and submitting the form.