Export of Goods from India: A Simple Guide

Introduction to Export of Goods from India

Export means sending goods or services from one country to another for trade or sale. It is an important part of international business, helping countries sell their products in other markets and earn foreign money.

Exporting goods plays a key role in India’s economy. It helps earn foreign money and keeps the trade balanced. India is among the top exporters in the world, supplying products like agricultural goods, clothing, medicines, cars, and IT services to different countries.

India follows a set process for exports to ensure all rules are followed, product quality is maintained, and goods are shipped smoothly. This includes getting the necessary licenses, clearing customs, managing transportation, and handling payments.

The Indian government supports exporters through programs like the Remission of Duties and Taxes on Exported Products (RoDTEP) and Duty Drawback, which help reduce costs and make Indian goods more competitive in the global market.

With a strong network of ports, airports, and trade agreements, exporting from India is easier. Government initiatives like 'Make in India' and 'Ease of Doing Business' encourage more people to start exporting. With better technology and government support, India’s export industry is growing every day.

The government promotes exports from India because it brings several important benefits to the country:

• Brings in Money: When India sells products to other countries, it earns money from abroad. This money, known as foreign exchange, strengthens the economy.
• Creates Jobs: More exports mean that companies need to produce more goods. This leads to the creation of more jobs for people.
• Boosts Economic Growth: With more money coming in and more jobs available, the overall economy grows. A stronger economy can lead to better living standards for everyone.
• Improves Trade Balance: Selling more to other countries helps balance the money spent on imports. This keeps the country’s financial situation healthier.
• Encourages Better Quality and Innovation: To compete in the global market, businesses improve their products and services. This innovation benefits both the companies and the consumers.

1. Get an Importer Exporter Code (IEC)

• IEC is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT).
• It is mandatory for any business engaged in international trade.
• You can apply for IEC online through the DGFT website.

2. Select the Right Product and Market

• Research the demand, pricing, and regulations of the target market.
• Check if the product is restricted or prohibited under Indian trade laws.
• Analyze competitors and find potential buyers.

3. Register with Export Promotion Councils (EPCs)

• EPCs are organizations that help exporters by providing market insights and financial benefits.
• They assist in participating in trade fairs and exhibitions.
• Example: Pharmaceuticals Export Promotion Council (Pharmexcil) helps medicine exporters, while Gem & Jewellery Export Promotion Council (GJEPC) supports jewelry exporters.

4. Check Export Policy & Obtain Licenses (if needed)

• Some products require an export license or special permission from the DGFT.
• Restricted Goods (require special licenses):
  • Certain chemicals and pharmaceuticals
  • Wildlife products
  • Wheat & rice (specific varieties)
  • Defense equipment
  • Rare earth metals
• Prohibited Goods (cannot be exported):
  • Endangered animals & plants
  • Narcotics and illegal drugs
  • Antiques and rare artifacts
  • Human organs
  • Certain food items (during shortages)

5. Get Quality Certification

• Many products require certification to meet international standards.
• Examples of certifications:
  • APEDA – For agricultural and processed food products
  • FSSAI – For food safety compliance
  • GMP & WHO Certification – For pharmaceuticals
  • OEKO-TEX – For textile safety
  • BIS – For electronics and electrical goods
  • NPOP – For organic products

6. Negotiate with the Buyer & Finalize the Contract

• Agree on terms like price, quantity, quality, payment, and delivery schedule.
• Decide on Incoterms like FOB (Free on Board) or CIF (Cost, Insurance, and Freight) to define responsibilities.

7. Arrange for Financing (if needed)

• Exporters can get financial assistance from banks through:
  • Packing Credit (for pre-shipment expenses)
  • Export Credit Insurance (to protect against non-payment)
  • Letter of Credit (LC) (a guarantee from the buyer’s bank)

8. Packing, Labeling, and Marking

• Goods must be packed as per international shipping standards.
• Labels should comply with the importing country’s regulations.

9. Hire a Forwarding Agent

• The agent handles shipping formalities such as:
  • Getting customs clearance
  • Preparing shipping documents
  • Coordinating with the shipping company

10. Customs Clearance and Shipping

• File a Shipping Bill with Indian Customs via the ICEGATE portal.
• Submit required documents (invoice, packing list, Bill of Lading, export declaration, etc.).
• Pay export duty (if applicable).

11. Choose Transportation and Shipment

• Decide on the best mode of transport (air, sea, or land) based on cost and delivery time.
• Work with a reliable freight forwarder or logistics provider.

12. Get Insurance for Goods

• Marine insurance protects against damage or loss during transit.
• This is usually required for high-value exports.

13. Submit Post-Shipment Documents and Collect Payment

• Submit necessary documents to the bank for payment processing.
• If using a Letter of Credit (LC), ensure all conditions are met.
• Follow up with the buyer for timely payment.

14. Claim Export Benefits & Incentives

• Apply for Duty Drawback, GST refunds, and RoDTEP benefits to save costs.
• Submit claims through DGFT or Customs portals.