Export Process

[Honeykumar Sharma]

Dear Sir/Ma'am,

Request you to please clarify the below points.

1) I want to start a export business (If possible request you to please let me the full process)

2) I have an IEC, Product, Market.

3) How to identify the genuine buyer? Safest payment term? Safest Inco term?

4) How many documents do we require to fill up? Type of Doc and No. of copy per doc?

5) What is the process of Port Registration?

6) How to calculate the FOB & CIF Price?

7) How to Claim MEIS & Duty Drawback?

I request you to please explain me the full process of Export business (Step by Step), so accordingly will move ahead.

Awaiting for your positive response.

Regards,

Honeykumar Sharma

[KASTURI SETHI]

For such purpose, physical training (face-to-face) is required. Even replies to all the queries would not suffice. Hope you follow and would not mind it.

[YAGAY and SUN]

Dear Honey Kumar Sharma,

Following are the replies on your queries: -

1. Please visit DGFT's website. https://dgft.gov.in/

2. Please check whether your product falls under which category i.e Free, Restricted or Prohibited.

3. For Genuine Buyers, You can check FIEO's website. Safest Payterm is Either against Documents/at sight/LC/Advance. Safest INCOTERM is EX WORKS/FOB/CIF respectively.

4. Currently three documents are required: Commercial Invoice cum Packing list, Tax Invoice and Shipping Bill. Bill of Lading/Airway Bill would be generated by Shipping Company. If required you may also apply for Certificate of Origin.

5. For port registration you would need copy of IEC, list of Directors, GSTIN, BIN (Default generated on the basis of IEC on Customs Port). Bank Account, Address Proof, AD Code.

6. Through Cost Sheet you would be able to calculate the FOB Value = (Ex works + Freight till port+ Insurance till port); CIF = (FOB + Insurance till Destination Port + Freight till Destination Port).

7. MEIS will applied by filing an online application at DGFT's website on the FOB value of export goods against the amount actually received. Duty Drawback will be on the value of FOB of exported goods, It can be AIR Duty Drawback or Under Section 74 of the Customs Act or Under Section 75 of the Customs Act i.e. Brand Rate Fixation.

Regards,

YAGAY and SUN

AI Summary

Export compliance: Register, document exports, secure payment terms, apply Incoterms and claim export incentives while valuing shipments.
Guidance for exporters: obtain an Import Export Code and classify goods; verify buyers via trade bodies and prefer secure payment terms such as document against payment or sight LC; use Ex Works/FOB/CIF Incoterms per risk allocation. Prepare commercial invoice cum packing list, tax invoice and shipping bill; carrier issues bill of lading or airway bill. Register at the port with IEC, director list, GSTIN, bank details, address proof and AD code; BIN is derived from IEC. Calculate FOB as ex works plus freight and insurance to port, CIF as FOB plus insurance and freight to destination. File MEIS online on FOB value and claim duty drawback or brand rate fixation under customs rules.