Thinking about starting your own business? One of the fastest-growing economies in the world has some of the best opportunities for budding entrepreneurs, like India. Whether you are a trader, manufacturer, or someone looking to get into entrepreneurship, getting to grips with the export process from India will help you lay the foundation for your global business aspirations. Most first-time exporters search for how to export from India, but due to the number of processes they have to go through, they find this task rather daunting. This guide has broken down all the processes you will have, from registration to getting your final payment, into simple steps.
Why Exporting from India is a Big Opportunity
A large variety of products from all over the world get exported from India. Some of the major exports from India include textiles, jewels, and gemstones; engineering goods; chemicals; petroleum goods; fresh and dried agricultural goods; as well as pharmaceutical goods. The RoDTEP, MEIS, and the duty drawback schemes have provided a great degree of financial support to many exporters, which makes the export procedure from India even more rewarding.
The government of India is very business/export friendly and is currently focusing on improving India’s logistics, which means that it is easier than ever before for any new business to operate globally. If you are looking to start an Import Export Business from India, It is crucial to understand the entire process and steps of the export cycle before you send your first shipment.
Step-by-Step Export Process from India
Step 1: Obtain an Import Export Code (IEC)
An Import-Export Code is the first of the two most important requirements for the export process from India. This means that every exporter and importer from India has to have a 10-digit code granted by the Directorate General of Foreign Trade.
To apply for an IEC, you will need the following documentation:
- PAN card
- Aadhaar card or Passport
- A bank certificate or canceled check
- Proof of a business address
Step 2: Register with Export Promotion Councils
After obtaining IEC, it is recommended that the exporters register with the respective Export Promotion Council (EPC) based on their product category. For instance, APEDA deals with agricultural products, FIEO stands for general exporters, and the Gem and Jewellery Export Promotion Council handles jewellery exporters.
Registration grants access to government schemes, buyers’ lists, participation in trade fairs, and export financing. This early step in the procedure for export procedure from India is overlooked often and should not be omitted.
Step 3: Identify Your Product and Target Market
Before you go any further with your plans, you need to know:
- The product you want to export
- The HS Code (Harmonized System Code) for that product
- The countries you want to export to, including their individual challenges
- Limiting factors such as import duties and tariffs and available trade treaties
When wondering how to export from India for the first time, identifying the right product and right destination market is half the equation. Studying the major export items of India will help you make informed decisions about product categories that will be most in demand in the global market.
Step 4: Find International Buyers
Finding the right buyer is a crucial part of the export process from India. You can discover international buyers through:
- B2B sites like Alibaba, IndiaMART Global, and TradeIndia
- Trade fairs and exhibitions run by the EPCs
- Buyer seller meets conducted by the DGFT
- Government trade websites and trade embassies
- Reaching out directly on LinkedIn and using email campaigns
For those who want to succeed in the international market, reading A Practical Guide for New Export Entrepreneurs on eximity is a great source to help you develop your skills on how to contact international buyers, finalize trade terms, and develop a long-term working relationship with your overseas clients.
Step 5: Get Your Export Documentation Ready
Export documentation in India is one of the most critical parts of the entire process. The documentation work is critical to ensure no missing documentation and all the documentation is correct, as the shipment itself could even be refused at the port of exit due to the documentation work being incorrect or missing.
Key export documents include:
- Commercial Invoice
- Packing List
- Bill of Lading or Airway Bill
- Certificate of Origin
- Shipping Bill
- Letter of Credit (if applicable)
- Export Declaration Form
- GST Invoice and e-Way Bill (for domestic movement to port)
Completing these documents helps streamline the customs process. It provides assurance to the exporter that he will get paid for the consignment.
Step 6: Arrange Logistics and Freight
With the order confirmed and documents ready, you need to prepare the shipment depending on the type of goods and buyer requirements from one of the following:
- Sea freight: Suited for heavier goods. Most cost-efficient if the shipment is large.
- Air freight: Ideal for perishables, samples, or high-value goods. More expensive, but quicker.
- Courier services: Good for samples, documents, or other shipments weighing less.
Before confirming your freight option, ensure you completely understand how to apply IEC Code Online and other compliance requirements on eximity, as certain routes and ports may have specific documentation requirements.
Step 7: Customs Clearance and Shipment
This entails using the ICEGATE system to submit a shipping bill to Indian customs, which will formalize your export declaration. You can get assistance from your Customs House Agent (CHA) by
- Accurately submitting the Shipping Bill.
- Obtaining the Letter of Export Order (LEO) from customs.
- Liaising with the port/airport authority to arrange for the loading of the cargo.
Step 8: Receive Payment and Claim Export Incentives
Send all export documentation to the buyer’s bank after shipment so they can be paid using their preferred method (LC, TT, DP, or Open Account). Once you’ve been paid, be sure to do the following:
- Apply for a GST refund for the IGST paid on export inputs.
- Get the RoDTEP or Duty Drawback by using the ICEGATE platform.
- Make any necessary DGFT updates regarding export obligation fulfillment.
Common Mistakes to Avoid in the Export Process from India
- Not checking the credibility of the international buyer before closing the deal
- Ignoring proper product labeling, packaging, and other relevant quality control standards and requirements of the country of destination
- Delaying the filing of duty drawback claims and shipping bills
- Underestimating the importance of correct export documentation in India
- Having an inadequate or no awareness of Incoterms and the payment risks when involved in the various trade terms
- Not getting cargo insurance
Conclusion
The export process from India comprises everything from IEC registration and buyer discovery to shipment, customs clearance, and the claiming of post-shipment incentives. Gaining an understanding of how to export from India step by step removes the confusion and provides you with a clear roadmap that you can use to guide you along the way. With India’s trade infrastructure developing rapidly, the Government of India is offering strong support, and global demand is growing for major export items of India; there has never been a more opportune time to internationalize your business.