A STEP-BY-STEP GUIDE TO EXPORTING FROM INDIA: PROCESSES AND PROCEDURES

When exporting goods or services, most countries require a one-time registration procedure. This allows individuals or companies to obtain an export from india license from the relevant government department if needed. Generally, a one-time export registration is sufficient for exporting goods, but certain restricted items may require a separate export license in the exporting country. These restrictions are managed by a government agency responsible for specific products. Additionally, specific goods may require a license based on the trade policy of the exporting country. Products are categorized as freely exportable, restricted, or prohibited, with the latter being strictly forbidden from export. The official website of the exporting country provides the list of prohibited goods. By adhering to these regulations and obtaining the necessary licenses, exporters can ensure compliance with trade policies and facilitate international trade.

What are the processes for exporting from India?

  • Formation of a company 

 When exporting from India, the first step is to determine the legal structure of your company: sole proprietary concern, partnership firm, or private limited company. Register your company with the regional Micro, Small, and Medium Enterprises office using Form 1 to enjoy benefits like government schemes and financial assistance. Ensure accurate information and seek guidance from a legal professional or business advisor to meet all legal requirements. Establishing the right organizational structure and completing the necessary registrations will provide a strong foundation for your export business in India.
 

  • Open an account with a leading bank 

 To facilitate your export business from india, open a current account at a local bank capable of handling foreign exchange (FOREX). Use the Form 1 registration certificate from the MSME to prove your company’s registration. Ensure you have the documentation, such as identity and address proofs, to satisfy the bank’s requirements. Prioritize communication with the bank to understand their specific account opening and FOREX transaction procedures. By opening a bank account suited for FOREX operations and providing the Form 1 certificate, you establish the financial infrastructure essential for smooth international trade operations.

 

  • Getting your PAN 

 To comply with regulations, exporters and importers must obtain a PAN. Apply for a PAN card online or offline. Offline, get Form 49A from PAN centers or download it. Fill out the form accurately, attach documents, and submit it. Online, fill out the form, upload documents, and make the payment. Online applications are faster.

 

  • Applying for your IEC 

 The Importer-Exporter Code (IEC) is a ten-digit number required for import and export activities in India. You can apply for an IEC directly at the Regional office of DGFT or through the new online scheme. It’s important to note that only one IEC can be obtained using one PAN card. The application process involves filling out the form, submitting necessary documents, and making payments. The online application system offers convenience and efficiency. Obtaining an IEC ensures compliance with regulations and provides a unique identification for international trade operations in India.

 

  • Get your RCMC 

The Registration cum Membership Certificate is issued by Export Promotion Councils, Commodity Boards of India, or authorized Development Authorities as specified in the foreign trade policy or HBP Vol1. Companies involved in export from india, importing, or seeking export incentives or tax benefits for capital imports are required to obtain an RCMC. The current procedure for obtaining an RCMC is manual, requiring applicants to submit hard copies of the necessary documents to the regional authority. The RCMC serves as proof of membership in the relevant industry body and facilitates trade by enabling access to incentives and benefits while ensuring compliance with trade regulations.

 

  • Product selection 

 In India, most products can be freely exported, but exporters must be aware of certain regulations under the Foreign Trade Policy. For example, when exporting beef, reproductive organs like testicles must be removed. This ensures compliance with cultural and religious considerations surrounding beef consumption. During high local market prices, temporary export pauses may also apply to commodities like pulses, lentils, and onions. These restrictions aim to stabilize domestic food supplies and maintain reasonable prices for local consumers. By adhering to FTP regulations and staying informed about temporary export limitations, exporters can effectively navigate the process, contribute to India’s economic growth, and respect local market dynamics.

 

  1. Target market selection 

 When selecting potential markets for exports from india, it can be advantageous to focus on Tier 1 countries recommended by the Export Promotion Council, particularly in Europe and North America. These countries offer a higher export incentive of 5% of the total foreign exchange earned. In contrast, countries without an international currency typically provide a lower export incentive of around 3% of the total forex earned. By strategically targeting Tier 1 countries, exporters can maximize their financial benefits. However, thorough market research is crucial to ensure compatibility with the target markets and identify suitable buyers. As suggested by the EPC, prioritizing markets in Europe and North America allows exporters to take advantage of the higher incentives available and optimize their export earnings.

 

  • Finding your buyers 

 To find buyers, prioritize online platforms and build trust. Remember, customers initially buy the salesperson, not just the product. Send samples to potential clients and consider meeting them in person to establish lasting relationships. Additionally, participate in Export Promotion Council events, Chamber of Commerce events, and international trade events to connect with potential buyers. Utilizing both online and traditional methods maximizes the chances of finding and cultivating buyer relationships.

 

  • Sampling 

 Building trust is crucial for export orders, and sending samples plays a key role. Under the Foreign Trade Policy of 2015-2020, there are no limitations on exporting technical samples or freely exportable items. This allows exporters to freely send samples to potential buyers, showcasing product quality and suitability without any cap limit. Leveraging this policy provision helps establish trust and increases the chances of securing export orders.

 

  • Costing 

 Exporters must carefully consider pricing in the competitive international trade landscape. To stay competitive, some Indian exporters quote their breakeven price to clients and rely on export incentives for profit, given the growing competition from China and increasing trade relations between African countries and the West. By factoring in costs such as breakeven, freight, insurance, and sample expenses, exporters can optimize their pricing strategies and maximize profitability in the global market.

 

  • Risk protection 

 The Export Credit Guarantee Corporation of India provides Credit Risk Insurance and related services to promote exports from india. It offers coverage to protect exporters from potential losses and facilitates overseas investment opportunities for Indian organizations in joint ventures abroad. ECGC plays a vital role in mitigating risks and supporting foreign trade.


Summary – In conclusion, Indian exporters face product restrictions and should target Tier 1 markets for higher incentives. Building trust through samples, participating in events, and utilizing online platforms are essential for finding buyers. The ECGC provides credit risk insurance to support foreign trade. To expand export from india opportunities, Indian exporters should consider registering with Amazon Global Selling, gaining access to a wider customer base and streamlined international sales channels.