Export Procedure | Steps to export from India
Posted: Jun 16, 2019
International trading or import-export business is the key to expand or increase your small business into a huge establishment. Once you start trading in the international markets then you might be able to sustain your business and the financial stats of your business would also improve. High revenue, security in the business and the overall growth of your business are the areas you will cover once you get into the import-export business.
Indian market is one of the biggest exporters in the global market as many SMEs and small business establishments, play a major role in international trading. As smooth and suffice this mode is for entering into international business but there are some requirements that are supposed to be taken care of. Requirements include PROCEDURES AND DOCUMENTATIONS.
1. Any export-import business starts with the potential buyer requesting for export-import data and the data will include the following:
- Cost of the product.
- Quality/ Standard of the product.
- Terms and Conditions for the transportation of Product.
Then Performa Invoice is issued by the producer/exporter which has all the answers with a citation.
- Once the buyer gets the Performa, the buyer has to approve the parts of terms and condition, he/she put while indent or requesting for the goods/services.
- Right after the exporter gets the request or indent, the exporter will send an inquiry regarding the financial status of the importer and will also evaluate the non-payment circumstances.
- Now comes exporting license, because without the export-import license, the customs law will prohibit the exporter or exporting firm to continue with the exporting process. Hence there is a procedure of obtaining the import-export license, in order to get the permit following are the steps that should be taken care of for acquiring the license for exporting:
- In any approved bank there should be an opening record
- Time to obtain import-export code ( IEC ) number from Directorate General of Foreign Trade(DGFT) or Regional Import Export Licensing Authority (RIELA).
- Registration with a suitable export committee that promotes this practice.
- Enrolment in Export Credit and Guarantee Corporation (ECGC).
- Export-import finance is your next step after you get your export-import license, to carry out any production, the exporter requires pre-dispatch finance, therefore it is time to get in touch with your banker so that you can use this line of credit.
- Once you get the Export-import finance from the Bank, now the time has come to utilise the credit you obtain from the bank for manufacturing the merchandise according to the importer.
7. The Credibility of your country, business, relation and product is entirely based on the quality of your product. In order to main1. tain its credibility in the international market, India has laws to ensure that there is no compromise with the quality of the product which is getting exported from India. Therefore for the non-disruptive flow of the process, the manufacturer needs to produce pre-shipment examination report along with the required documents at the time of dispatching.
- As we proceed further next step would be to take care of the Central Excise Tariff Act. Excise duty on any export-import products are used as a part of a process and in order to retain the excise refund, the exporter is obligated to contact the concerned Excise Commissioner in the area with a proper receipt.
- Any sort of trading practice has two main objectives:
- Tariff concessions
- Diverse exclusions
Hence in order to reach the final objectives, the authentication of origin may be demanded by the importer.
10. There are areas that are supposed to be covered by the exporter during the exportation of goods and supplies in the overseas markets. In order to reach out to all the areas exporters approach many logistic organisations, these organisation has expertise in dealing with the process but in order to have an effective collaboration full information about the merchandised that includes:
- Dispatched data.
- Conceivable date of shipment
- Port of destination
Then the course of action is issued by the logistic organisation that acts as a guideline to the Captain.
- The Crucial data such as name and address of the importing person, gross and net weight, the port of shipment and destination etc, are supposed to be mentioned on the exported goods.
- In order to make sure that your product has the quality, you pick credit from the bank. Similarly, for the security transportation process, it is better that you get a guarantee from an insurance company.
- Captain issues mate’s receipt to the port administrator which contains data regarding the shipment, such as vessels and bills.
- After that, the receipts are handed over to the transportation organisation for analysis of the cargo. Once the cargo or shipment is accepted, the bill of lading is issued.
- Now for the outgoing shipment, the exporter has to prepare the receipt that contains data regarding the shipment.
- After dispatching the shipment or merchandise, the exporter is obligated to inform the importer and send the required documents which are required for clearance of their products from custom.
Connect2India provides in-depth information and support regarding the procedure of exporting from India and also provide end to end services till the successful execution of trade. To know more, visit our website at https://connect2india.com
We are a one stop source for Indian SME to export from India or Import to India. We provide end to end export import services right from arranging export order to executing the order successfully.