If you’re eager to tap into India’s vast export market and contribute to the 18th-largest export economy globally, you’re in the right place. However, navigating the path to global markets involves complexities, legalities, and extensive documentation.
Navigating the Export Landscape: A Step-by-Step Guide
1. Preparing for Export
1.1 Establishing an Organisation
Before shipping goods overseas, establish a robust foundation for your export business. Choose a structure and register your company with the regional Micro, Small, and Medium Enterprises (MSME) for benefits and subsidies.
1.2 Opening a Bank Account
In international trade, money is paramount. Open a current account to handle foreign exchange (FOREX) transactions.
1.3 Obtaining a Permanent Account Number (PAN)
The 10-character alphanumeric PAN is essential for financial transactions, serving both tax purposes and as identity proof.
1.4 Securing Import-Export Code (IEC) Number
Think of the Import-Export Code (IEC) as your golden ticket to international trade—a must-have for exporting or importing goods.
1.5 Obtaining Registration cum Membership Certificate (RCMC)
Consider the RCMC as your VIP pass, issued by Export Promotion Councils, Commodity Boards, or Development Authorities. It’s essential for availing export incentives under the Foreign Trade Policy (FTP).
1.6 Choosing Your Product and Market
Decide what to sell and where by conducting meticulous research on potential markets and products aligning with your business model.
1.7 Setting Pricing of the Product
Pricing is a strategic tool that considers breakeven points, freight costs, and competition, providing a competitive edge.
1.8 Negotiating with Buyers
Building trust with buyers, whether online or through traditional methods, involves sending samples.
1.9 Covering Risks through ECGC
Mitigate risks with the Export Credit Guarantee Corporation of India (ECGC), offering export credit insurance against buyer insolvency or political upheavals.
2. Executing the Export
2.1 Confirmation of Order
Receiving the initial order is the first milestone in your export journey.
2.2 Procurement of Goods
Source goods after confirming the order, engaging third-party inspection agencies if necessary.
2.3 Financing
Secure funds through various export financing options, from export credits to government grants.
2.4 Labelling, Packaging, and Marking
Ensure compliance with logistical and regulatory requirements, including inspection certificates.
2.5 Insurance Coverage
Various types of export insurance protect different aspects of the export process, from cargo insurance to credit insurance.
2.6 Delivery
Choose from multiple International shipping options, understanding the significance of the Invoice as a legal document.
2.7 Customs Procedures
Clear customs with necessary documents, including the Shipping Bill or the Bill of Export.
2.8 Customs House Agents
Utilize Customs House Agents to handle paperwork and ensure smooth customs clearance.
2.9 Documentation and Submission of Documents to the Bank
Accurately fill out and submit essential documents, such as the Commercial Invoice and Certificate of Origin, as part of the Documentary Bill of Exchange.
2.10 Realizing the Export Proceeds
Complete banking formalities for payment, considering currency exchange rates and associated fees.
Conclusion
Venturing into the export-import business is complex but rewarding. Platforms like Overseas Logistics offer fully integrated logistics, making exporting a hassle-free experience with multiple services and support.
FAQs
What Is The Cost Of IEC Registration?
The total cost for Import Export Code (IEC License) registration in India is ₹1499, including a government fee of ₹500 and a professional fee of ₹999 for the registration process.
Can We Export Without RCMC?
No, exporting without a Registration cum Membership Certificate is not possible as per para 4.10 of the Export-Import policy.
Is GST registration Mandatory For IEC?
No, GST registration is not mandatory for obtaining an Import-Export Code (IEC) in India.
What Is The Procedure To Obtain RCMC?
To obtain an RCMC license:
- Visit the FIEO Registration portal and sign up.
- Click on the “Get for RCM License” link.
- Complete the form with accurate details.
- Choose the FIEO office for registration.
- Add details about the export product.
- Attach a self-attested copy of your IEC and a letter of authority.
- Fill in your GST details.
- Pay the required fee online or offline.
- Submit the form.