Export Procedure from India

For a beginner, who is planning to export goods from India must be conversant with the rules and regulations laid down by the Government of India.

An exporter must take care of various aspect related to export of goods/ commodity from India to anywhere in world. There are some basic procedures which should be followed by an exporter.

Let us try to understand Step-by- step.

1. First of all, there should be a firm through which you want to export. It may be a proprietorship firm, partnership firm, private limited, HUF etc. If you have an existing firm you can do export and import in that particular company and there is no need to form a new firm to do export or import business in India.

2. The firm/ entity through which you want to do export and import, you must get and Importer Exporter Code / License for that firm. This License can be done online through DGFT site by filling up required detail and uploading documents.

3. The firm should have a PAN and GST Number. Import Export Code (IEC) issued by DGFT will bear number as PAN.

4. You need to have a bank account in the name of your firm. You should prefer bank’s branch which is dealing Forex.

4. Registration with required EPC (Export Promotion Council) according with the product and commodity which is to be exported. You need to get a RCMC (Registration cum Membership Certificate) from that Export Promotion Council.

5. AD (Authorized Dealer) Code Registration. This can be done online or offline basis. You need to get a letter from you banker for this and with other relevant documents you will have to give it to your CHA (Custom House Agent) for registration with Customs EDI Portal.

6. Appointing CHA (Custom House Agent) and FF (Freight forwarder). CHA will take care of your custom related formalities, documentation etc and Freight forwarder will ensure containers and transportation of your cargo.

7. Negotiation with foreign buyer and preparing contracts with them covering different aspects and as per your business requirements.

8. Once all these above done, then there comes filing of documents with customs based on your invoice. You will have to handover your invoice and other documents which will declare your product, quantity, price etc to your CHA who will process these documents with customs and will ensure clearance from them.

9. Do all required inspection of cargo with independent surveyor as per your contract agreed with the buyer. Do fumigation if required.

10. Once cargo is stuffed in containers and loaded on vessel, then take originals bills of lading from your freight forwarded.

11. Prepare all set of documents as required in foreign buyer contract (Documents should be as per Importing Country Norm).

12. Send a scan copy of documents to your buyer but “Please note, do not send copy of express bl or seaway bl or airway bl” by email. Because you buyer can clear cargo only on the scan copy of these bills of lading. So if you have not received full amount, never share scan copy of these bills of lading.

13. As per your contractual terms, present documents in your bank who will send documents to buyer’s bank. Clearly state your payment terms which is agreed between you and your buyer in the contract.

You can not send documents to your buyer directly by courier. This can be done only in few cases like, if you have received full payment from your buyer or it is mentioned in the terms of letter of credit or your firm/ company is a status holder.

14. Your buyer’s bank will handover these documents to the buyer as per your instructions which is given in the bill of exchange and forwarding letter. It will be same as payment terms which you have agreed with your foreign buyer in the contract.

15. Once your buyer makes payment, their bank will transfer this amount to your bank and your bank will intimate you regarding receipt of fund.

16. Then you will have to submit all relevant documents and forms to your bank for realization of fund.

17. Once payment against your export of cargo is settled in Bank’s system, you can get a BRC copy (Bank Realization Certificate)  from the DGFT portal.

This is a brief of export procedure and cycle of export shipment.

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