Dial4 Export Market How To Do Exports

Dial4exportmarket.com serves as your ultimate export guide. According to the Directorate General of Foreign Trade (DGFT), an export is the act of transporting goods out of India by land, sea, or air through a legal transaction. Foreign trade operations are governed by the Foreign Trade Policy (FTP) 2015–20, effective from 1st April 2015.

Exporting involves several essential procedures and formalities. A prospective exporter must follow multiple steps to become a legitimate and compliant exporter.

Steps to Start an Export Business

1) Registration of an Organization
A sole proprietorship, partnership firm, or company must be formed with a proper business name and logo to initiate an export business.

2) Opening a Bank Account
A current account must be opened with a bank authorized to conduct foreign exchange transactions.

3) Procuring Permanent Account Number (PAN)
A valid PAN issued by the Income Tax Department is mandatory to engage in export-import activities.

4) Procuring Importer-Exporter Code (IEC)
IEC issued by DGFT is compulsory for exporting goods. The application must be submitted along with the required fee.

5) Obtaining Registration-Cum-Membership Certificate (RCMC)
Exporters must obtain an RCMC from the concerned Export Promotion Council, FIEO, Commodity Board, or authorized body to avail benefits under the Foreign Trade Policy.

6) Picking the Right Product
Select products that are permitted for export. Analyze export trends, global demand, and feasibility.

7) Choosing the Market
Conduct deep research on competition, demand, payment terms, export incentives, and quality standards. Utilize export agencies, EPCs, and Indian missions for market insights.

8) Determining Prospective Buyers
Participate in trade fairs, exhibitions, buyer-seller meets, and B2B portals. A multilingual website helps attract international buyers.

9) Sampling
Provide customized samples to potential buyers. Export of genuine samples of freely exportable items is permitted without any restrictions under FTP guidelines.

10) Pricing of Products
Pricing should consider sampling, production, logistics, freight, insurance, and export terms like FOB, CIF, CFR, etc. Use costing sheets for accuracy.

11) Agreement with Buyers
Negotiate pricing, terms, and conditions considering long-term business prospects before finalizing the agreement.

12) Risk Coverage with ECGC
ECGC policies safeguard exporters against buyer or country-related payment default risks. Obtaining credit limits is highly recommended.

How to Process an Export Order

A) Order Confirmation
Examine the order thoroughly regarding product specifications, packaging, payment terms, and delivery schedules.

B) Procuring the Products
After confirmation, procure or manufacture goods as per buyer requirements.

C) Quality Assurance
Ensure internationally accepted quality. Pre-shipment inspections may be mandatory for some goods.

D) Financing
Exporters can avail pre-shipment and post-shipment finance at concessional rates. Banks typically grant 75–90% of order value as packing credit.

E) Labeling, Marking & Packaging
Goods must be packed and labeled according to buyer specifications. Proper packaging ensures safe and efficient shipment.

F) Insurance of Products
Marine insurance covers loss or damage during transit. CIF contracts require exporters to arrange insurance.

G) Delivery of Products
Follow delivery schedules strictly to ensure timely and efficient shipment.

H) Customs Process & Procedures
Exporters must obtain a PAN-based Business Identification Number (BIN). Shipping bills must be filed through EDI or non-EDI systems. Necessary documentation and samples are handled during customs clearance.

Custom House Agent

Custom House Agents (CHA) are licensed professionals who assist exporters with customs clearance procedures.

Documentation for Export

Mandatory documents include Bill of Lading/Airway Bill and Commercial Invoice. Additional documents like Certificate of Origin, Inspection Certificate, etc., may be required depending on the shipment.

Submitting Documents to the Bank

Export documents must be submitted to the bank within 21 days for further processing. Documents include invoice, bill of exchange, L/C documents, packing list, certificate of origin, inspection certificate, etc.

Accomplishment of Export Proceeds

As per FTP, export proceeds must be realized in freely convertible currency (except exports to Iran). The realization period is 9 months from the date of export.