How to Export?
- Establishing an organization: Proprietary/Partnership
- Opening a current a/c with a Bank which is authorized to deal in forex
- Obtaining PAN
- Obtaining IEC No.: ANF 2A Form/Online (Rs. 500) | Bank Certificate/Cancelled Cheque bearing pre-printed name of the applicant and a/c no. | PAN | 2 Photographs | Self addressed envelope with stamp Rs. 30 | Address Proof – Sale deed/Lease Agreement, Electricity Bill etc.
- Selection of Product: Restricted items/Prohibited Items- e.g. Cereals, Seeds | Trends of export | Little competition + Higher Demand | Unique Product
- Finding Buyers: Trade Fairs, Buyer-Seller meets | Export Promotion Agencies | Creating own website
- Sending a sample
- Pricing/Costing: FOB – Free on Board | CIF – Cost, Insurance & Freight
- Risk: ECGC (Export Credit Guarantee Corporation of India Ltd.) (i) Export Credit Insurance for Exporter – (a) Turnover Based (b) Exposure based | (ii) Export Credit Insurance for Banks – (a) Pre-Shipment (b) Post-Shipment | (iii) Customer specific Covers
Processing an Export Order
- Confirmation of order: Receiving an export order | Items, specification | Payment conditions | Packaging | Delivery Schedule | Formal contract with the buyer
- Procurement of goods
- Quality Control: Compulsory pre-shipment inspection | Foods & Agri -APEDA | Fisheries – MPEDA | Chemicals – CAPEXIL | Foreign nominated agencies
- Finances: Concessional interest rates | Pre-shipment – (i) Packing Credit advance for new entrepreneurs (for 180 days) – 75-90% advance by banks | Post-shipment – (i) upto 90% of invoice (180 days from the date of shipment)
- Labeling, Packaging & Marking
- Insurance: Marine Insurance | CIF – Insurance by exporter | C&F & FOB – Buyer
- Delivery as Scheduled
- Customs Procedures: BIN (Business Identification No.) from the customs | Shipping Bill – Duty free goods | Exports under drawback | CHA (Custom House Agent) | Licensed by the Commissioner of Customs
- Transportation Documents: Airway Bill for air shipment | Bill for Lading – Sea | Postal Receipt – Postal
- Submission of documents to the Bank (within 21 days for shipment): L/C | Bill of exchange | Invoice | Packing Lost | Airway Bill/Bill of Lading | Declaration under Foreign Exchange | Certificate of origin/GSP | Inspection Certificate
- Registration with EPCs/ (Commodity Boards): 37 EPCs/CBs | RCMC (Registration cum-membership certificate) | IEC-Self certified copy | Valid for 5 year
- EPCs: Apparel EPC – Gurgaon | CHEMEXIL – Mumbai | Carpet EPC – New Delhi | Cashew EPC – Kollan, Kerala | CAPEXIL – Kolkata | Council for Leather Export – Chennai Council | Electronics & Comp. software – EPC – Delhi | EEPC – Kolkata | EPC – Handicraft – Delhi Gems & Jewellery – EPC – Mumbai
With inputs from Office of the Joint Director General of Foreign Trade.