Export Guide
Export Guide
| Step 1 : Registration Procedure |
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| 1.1 Establishing An Organisation with a proper Trade License Click Here |
| 1.2 Opening A Bank Account (current account with a Bank authorized to deal in Foreign Exchange should be opened) |
| 1.3 Obtaining Permanent Account Number (PAN) Click Here |
| 1.4 Obtaining Importer-Exporter Code (IEC) Number
IEC or Importer Exporter Code is a unique 10-digit alpha numeric code issued on the basis of PAN of an entity. It is mandatory for doing international business (export & import).
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1.5 Registration Cum Membership Certificate (RCMC)
For availing authorization to import/ export or any other benefit or concession under FTP 2023, as also to avail the services/ guidance, exporters are required to obtain RCMC granted by the concerned Export Promotion Councils/ FIEO/Commodity Boards/ Authorities.
Click Here for List of Export Promotion Councils
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1.6 Other Necessary & Important Registrations
Click Here for the list of Necessary & Important Registrations
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| Step 2: Pre-shipment Procedure |
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2.1 Selection of Products with HS Codes
Among industry classification systems, Harmonized System (HS) Codes are commonly used throughout the export process for goods. The Harmonized System is a standardized numerical method of classifying traded products. It is used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics.
Click Here to get the list of HS Codes at 2-digit level.
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2.2 Selection of Market
An overseas market should be selected after research covering market size, competition, quality requirements, payment terms etc. Exporters can also evaluate the markets based on the export benefits available for few countries under the FTP.
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2.3 Selection of Buyers
Participation in trade fairs, buyer seller meets, exhibitions, B2B portals, web browsing are an effective tool to find buyers. EPC’s, Indian Missions abroad, overseas chambers of commerce can also be helpful. Creating multilingual Website with product catalogue, price, payment terms and other related information would also help.
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| 2.4 Sampling
Providing customized samples as per the demands of foreign buyers help in getting export orders. As per FTP 2023, exports of bonafide trade and technical samples of freely exportable items shall be allowed without any limit.
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2.5 Pricing/Costing
Product pricing is crucial in getting buyers’ attention and promoting sales in view of international competition. The price should be worked out taking into consideration all expenses from sampling to realization of export proceeds on the basis of terms of sale i.e. Free on Board (FOB), Cost, Insurance & Freight (CIF), Cost & Freight(C&F), etc. Goal of establishing export costing should be to sell maximum quantity at competitive price with maximum profit margin. Preparing an export costing sheet for every export product is advisable.
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2.6 Negotiation with Buyers
After determining the buyer’s interest in the product, future prospects and continuity in business, demand for giving reasonable allowance/discount in price may be considered.
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2.7 Covering Risks through ECGC
International trade involves payment risks due to buyer/ Country insolvency. These risks can be covered by an appropriate Policy from Export Credit Guarantee Corporation Ltd (ECGC). Where the buyer is placing order without making advance payment or opening letter of Credit, it is advisable to procure credit limit on the foreign buyer from ECGC to protect against risk of non-payment.
(To know more about ECGC Click Here
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| Step 3: Processing Export Order |
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3.1 Confirmation Of Order
it should be examined carefully in respect of items, specification, payment conditions, packaging, delivery schedule, etc. and then the order should be confirmed
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3.2 Procurement Of Goods
It should be remembered that the order has been obtained with much efforts and competition so the procurement should also be strictly as per buyer’s requirement.
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3.3 Quality Control
Some products like food and agriculture, fishery, certain chemicals, etc. are subject to compulsory pre-shipment inspection. Foreign buyers may also lay down their own standards/specifications and insist upon inspection by their own nominated agencies. Maintaining high quality is necessary to sustain in export business.
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3.4 Finance
Exporters are eligible to obtain pre-shipment and post-shipment finance from Commercial Banks at concessional interest rates to complete the export transaction. Normally Banks give 75% to 90% advances of the value of the order keeping the balance as margin.
Post Shipment finance is given to exporters normally upto 90% of the Invoice value for normal transit period. The maximum period for post-shipment advances is 180 days from the date of shipment.
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3.5 Labeling, Packaging, Packing And Marking
The export goods should be labeled, packaged and packed strictly as per the buyer’s specific instructions. Similarly, good packing helps easy handling, maximum loading, reducing shipping costs and to ensuring safety and standard of the cargo. Marking such as address, package number, port and place of destination, weight, handling instructions, etc. provides identification and information of cargo packed.
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3.6. Insurance
Marine insurance policy covers risks of loss or damage to the goods during the while the goods are in transit. Generally in CIF contract the exporters arrange the insurance whereas for C&F and FOB contract the buyers obtain insurance policy.
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3.7 Delivery
It is important feature of export and the exporter must adhere the delivery schedule. Planning should be there to let nothing stand in the way of fast and efficient delivery.
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